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The European Union she said to herself “deeply concerned“of the new configuration of the incentives that the American Senate approved, as it would penalize foreign manufacturers and violate the rules of the World Trade Organization (WTO). But what happened?
It is no mystery that the Biden government intends to push electric cars. At the same time, however, he wants incentivize investments for the production of electric vehicles in the country and those for the extraction of raw materials for the construction of batteries. All with the aim of reduce dependence on China.
The new incentives for the purchase of electric cars have also been included in the “Inflation Reduction Act” which provides, among other things, measures in favor of the ecological transition. Thus comes the confirmation of $ 7,500 tax credit.
What worried the European Union are some of the requirements that must be met in order to have access to this bonus. In fact, there is an obligation to assemble battery vehicles in North America and, above all, it is necessary that these cars are built with critical materials that come from the United States or from a country with a free trade agreement with Washington.
These are choices made with the obvious motive of pushing American industry to the detriment of Chinese. However, the European Union, while sharing the importance of proposing incentives to push the spread of electric cars, said it was very perplexed and worried about these constraints, which it considers “discriminatory”.
We think it is discriminatory, that foreign producers are discriminating against US producers. Of course this would mean that they would be incompatible with the rules of the World Trade Organization.
For the European Union, therefore, equity and therefore calls for fair and above all non-discriminatory measures to be introduced.
We therefore continue to urge the United States to remove these discriminatory elements from the bill and ensure that it is fully compliant with World Trade Organization rules.
We will see if the appeal of the European Union will take effect. It must be said that the bill after approval in the US Senate is close to being passed to the House. Then only Biden’s signature will be needed.
But it is not only the European Union concerned about the new system of American incentives. In fact, criticism also comes from the Alliance for Automotive Innovation which states that the new rules they would exclude 70% of electric models from the incentives present on the American market.
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