The United States and the EU agree to a deal that will allow European electric car manufacturers to get subsidies in the US

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The United States and the EU agree to a deal that will allow European electric car manufacturers to get subsidies in the US

The US and the European Union agreed on Friday to enter into negotiations with trade treaty in minerals to favor European companies that manufacture electric vehicles and to establish “transparent dialogue” about green energy resources.

These were announced in press statements by the President of the European Commission (EC). Ursula de Leyeninterviews in the Oval Office of the White House with the US President; Joseph Biden.

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Von der Leyen explained that the meeting was “constructive” and both aimed at finding solutions to the tensions that have characterized the transatlantic relationship in recent months after the approval in the US of the reduction of the so-called Inflation Act (IRA, in English).

The Inflation Reduction Act includes Mexico and Canada in subsidies

This law provides assistance in a package of 370,000 million dollars (about 350,000 million dollars) to promote transit activity and offers Tax incentives for companies that manufacture electric vehicles with components made in North America, including Mexico and Canada, with which the US has free trade agreements.

European companies, in principle, could not access these resources, because the community does not have a large trade with the US, but Washington and Brussels want to solve it.

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According to Von der Leyen, the idea is that electric vehicles are manufactured with a certain amount minerals extracted or processed in Europewhich would provide European companies with similar treatment to Mexican, Canadian and US companies.

In addition, the agreement of the United States and European Union better access to those minerals and raw materials needed to make everything from solar panels to electric vehicles, the extraction and processing of which is almost entirely controlled by China.

Negotiations will begin “immediately,” according to a joint statement issued later by the two parties.

“Transparent dialogue” about green resources

In parallel, the United States and the EU agreed to a “Transparent conversation” about resources that both offer the economy of a green energy industry, Von der Leyen explained.

The US and the EU will exchange information on the subsidies that the companies will receive

With this dialogue, the US and the EU will exchange information about the subsidies that different companies will receive thanks to the Inflation Reduction Act and the so-called “Green Pact Industrial Plan”, which the European Commission presented last month.

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“For us on both sides of the Atlantic, it is important to know what kinds of incentives are used for clean energy to ensure that we join forces,” von der Leyen argued.

Until now, European countries have resisted the Inflation Reduction Act’s protective measures and have complained that European companies are moving from Europe to the United States, in order to take advantage of these tax breaks. However, Von der Leyen said this Friday that he would “undertake” the money measure he is making for a more sustainable future.

The EU and the US also set October of this year as the deadline to close their deal sustainable steel and aluminum.

“New steps” against countries that support Russia

Biden and Von der Leyen decided to take “new steps” against third countries that support Russia in the war

Although the big announcements came from the financial side of the meeting, the two leaders also focused on the agenda war in Ukraine. Both agreed to take “new steps” against those third countries that support Russia in the war, according to the joint statement. Moreover, Biden and Von der Leyen promised to do so enforcement of sanctions that they jointly imposed the war on Russia.

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At the beginning of the meeting in the Oval Office of the White House, the two leaders congratulated each other on the coordination shown by the US and European countries both when imposing sanctions on Russia and providing military aid to Ukraine.

In front of the television cameras, Biden recalled how last year the two sides of the working group met, whose objective was to help the US to the EU reduce its dependence on Russian gasnamely by supplying it with 15 bcm of liquefied natural gas (LNG).

Biden told Von Der Leyen: “We gave you a double” and I raised my fist in victory. Faced with this gesture, European politics smiled and said: “It’s right.” The two leaders addressed the press and Biden said that the two powers were experiencing a “new era” of cooperation.

China It was also part of the talks between the two leaders, although there were no major decisions about it.

Biden indicated that he sees China as America’s biggest strategic competitor; while Europe has traditionally had a closer place with giant Asia.

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