EU ministers say a swift solution is needed to avert a looming trade war with the United States over its green subsidy scheme that risks siphoning off investment from Europe, news media reported Friday
MOSCOW (Pakistan Point News / Sputnik - 25th November, 2022) EU ministers say a swift solution is needed to avert a looming trade war with the United States over its green subsidy scheme that risks siphoning off investment from Europe, news media reported Friday.
The US Inflation Reduction Act will unlock $369 billion in tax credits and subsidies for US consumers and companies making green tech products in the country from January. Several EU companies have already said they would invest in the US rather than the EU, with rising energy prices at home a crucial factor to consider, the Financial Times reported.
Jozef Sikela, the Czech minister of industry and trade who chaired a meeting with his EU counterparts in Brussels on Friday, said they had to come up with an action plan ahead of the next EU-US Trade and Technology Council on December 5.
"What is important for us is that the US is aware of our concerns and the taskforce has to work out a solution which will be acceptable for both parties," he was quoted as saying by the British daily.
Concerns are rising in Europe that the US tax credit plan could kick off a subsidy race between the transatlantic allies at a time when they need to show unity in the face of the Ukrainian conflict. Germany and France have already suggested following US suit with an EU subsidy regime.
