The European Union has serious concerns about the U.S. Inflation Reduction Act and believes it violates international trade rules, CNBC reported, citing an official document.
The U.S. tax, health care and climate bill was approved by U.S. lawmakers in August and includes a record $369 billion in spending on climate and energy policy. The landmark package includes tax breaks for electric cars made in North America and supports the U.S. battery supply chain.
European officials are concerned about how the financial incentives are designed, according to the document, which will be presented to U.S. officials. The EU has listed nine tax-credit provisions with which it has problems.
In fact, the EU is concerned about potential new trade barriers for European electric car manufacturers. And they're not the only ones; South Korea, for example, has also expressed the same concern.
Ngozi Okonjo-Iweala, director general of the World Trade Organization, said Monday that countries should be very careful that policies are not discriminatory and do not favor domestic products.
She acknowledged that some countries believe that subsidies provided for electric vehicles may be discriminatory against their own production of electric vehicles.
European officials are concerned about how the financial incentives are designed, according to the document, which will be presented to U.S. officials. The EU has listed nine tax-credit provisions with which it has problems.
In fact, the EU is concerned about potential new trade barriers for European electric car manufacturers. And they're not the only ones; South Korea, for example, has also expressed the same concern.
Ngozi Okonjo-Iweala, director general of the World Trade Organization, said Monday that countries should be very careful that policies are not discriminatory and do not favor domestic products.
She acknowledged that some countries believe that subsidies provided for electric vehicles may be discriminatory against their own production of electric vehicles.






















