Lawmaker suggests EU should raise concerns with WTO regarding U.S. Inflation Reduction Act

The European Union’s Concerns

The European Union is considering taking action against the United States over its green energy subsidy package. The head of the European Parliament’s trade committee suggested filing a complaint with the World Trade Organization (WTO) in the coming months.

Bloc’s Concerns

The EU is wary of the U.S. Inflation Reduction Act, a $430 billion bill that offers tax breaks to American companies. EU members fear that this could put European companies at a disadvantage in various sectors, including car manufacturing and green technology.

Meeting and Negotiations

Although officials from both sides plan to discuss the issue at an upcoming meeting, the chair of the EU parliament’s trade committee, Bernd Lange, expressed skepticism about the possibility of reaching a negotiated solution. He believes that significant changes to the bill are unlikely given that it has already been passed.

Possible WTO Complaint

Lange suggested that filing a complaint with the WTO would demonstrate that the U.S. legislation is not in line with the organization’s rules. This move could send a clear message about the EU’s stance on the matter.

Reporting by Riham Alkousaa; Editing by Frank Jack Daniel

Read More of this Story at – 2024-05-18 13:15:51

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