Saturday, February 4, 2023

US says fear of green subsidies to EU top priority

by Philip Blenkinsop

BrusselsJan 17 – The United States will respond to European Union fears that US green subsidy laws will give top priority to cleantech companies in the United States at the expense of Europe, the US Trade Representative said Tuesday. , Catherine Tai.

The European Union has expressed its deep concern about the $369,000 million investment to combat climate change that the law considers inflationary. AmericaWhich came into force this year itself.

Most of the investment, in the form of subsidies, is applied only to local production.

The transatlantic trading partners created a working group in October to address these issues.

Tai told reporters before meeting with his European Union counterpart Valdis Dombrovskis that the group is working hard. These are complex and important issues for US-EU relations and dealing with the climate crisis, he said.

“Regarding the work of the task force, what I would say is that it’s ongoing, it’s really a top priority given by the president himself (of) AmericaJoe) Biden,” Tai said.

The United States is increasingly aware that there is a crisis like the coronavirus pandemic covidCOVID-19 and geopolitical tensions have exposed the vulnerability of supply chains, and the fact that a large portion of the chain is located in partner countries, a practice known as “friend-shoring”, increases the potential for resistance. Increases

The United States, Tai said, does not intend to build its own entirely domestic supply chain and seeks complementary trade policies with its allies.

The transatlantic partners also have until October to agree a trade arrangement that addresses excess capacity in the global steel sector and creates incentives for low-carbon steel and aluminum production.

In October 2021, the United States suspended steel and aluminum tariffs imposed by former President Donald Trump for two years when he was in power.

Asked whether the tariffs could be reimposed, Tai said, “the possibility is always there,” adding that the possibility created a real incentive to push harder. The challenge, he said, is figuring out how to find a solution that fits the two disparate systems.

“We are in January 2023,” he said. “This is the moment we get down to business.”

Nation World News Desk
Nation World News Desk
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