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HomeEconomyU.S. trade official Day discusses inflation reduction bill with EU's Dombrowski

U.S. trade official Day discusses inflation reduction bill with EU's Dombrowski

By Kanishka Singh

WASHINGTON (Reuters) – U.S. Trade Representative Catherine Tay met with European Union Executive Vice President Valdis Dombrovskis on Friday, And discussed the United States’ “Reduce Inflation Act,” Tay’s office said in a statement.

EU countries are concerned that US legislation on billion-dollar subsidies for electric vehicles and other clean technologies could put Europe-based companies at a disadvantage.

Subsidies aimed primarily at North American manufacturers have local content requirements, which EU leaders fear could lure companies out of Europe. The legislation excludes electric vehicles assembled outside of North America from the U.S. tax credit.

“Ambassador Dai expressed optimism that the US and the EU can continue to work closely together to achieve their common goal of strengthening the global clean energy sector,” Tai’s office said after a meeting on the sidelines of the Munich Security Conference.

The EU wants the same treatment as US trading partners Canada and Mexico to be included in the subsidy program, but any changes to the bill by the US Congress are out of the question.

European countries are not the only ones expressing concern about the inflation reduction bill. South Korea is also seeking to negotiate with the United States on this.

The European Commission and the White House have established a high-level task force to discuss

Tai and Dombrovskis also discussed ongoing discussions on Negotiations on a global arrangement for sustainable steel and aluminum, and agreed to remain in close contact as negotiations continue, the Office of the U.S. Trade Representative added.



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