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US urged to extend subsidies.

 

US subsidies

The EU’s two biggest member states have urged President Joe Biden to extend benefits contained in the US flagship green economy legislation to European companies to end what threatens to become a bitter transatlantic trade dispute. The EU has warned that the act, which includes $369bn of subsidies and tax credits for green technologies, is damaging the bloc’s industrial base and breaches World Trade Organization rules. During a visit by Emmanuel Macron, French president, Biden said this month that there were «tweaks» to the powers that could make it easier for European companies to participate in the regime. Still, details had yet to be ironed out. Habeck and Le Maire said that rules in the US regime requiring green content to be sourced locally should be waived to ensure European products were eligible for the same tax credits that apply to US products.

In addition, Paris and Berlin want greater transparency by both sides when reporting the green subsidies being doled out. Bernd Westphal, the economic policy spokesman for Germany’s governing Social Democrats, said it was only fair that the US extended preferential terms to the EU that were already on offer to Canada and Mexico and waived local content rules for European groups. «American companies operating in Europe currently have access to a whole host of EU funds and programmes, such as electric car subsidies, business development funds, access to research and technology, and all the other benefits you get from the EU single market,» he said.

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  1. Diane20 December 2022 at 17:12

    Instead of trying to stop the US from investing in green technology, the EU must do the same. They need to invest much more in it and encourage people and companies to take part now, not in 5 years.

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    1. Alistair20 December 2022 at 19:22

      I agree with what you said and there's also the fact that American companies which operate in the EU are getting funding and benefits so why shouldn't EU companies get the same in the US?

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