U.S. Trade Representative Meets with EU Executive Vice President

By Kanishka Singh

WASHINGTON (Reuters) – U.S. Trade Representative Katherine Tai recently held a meeting with European Union Executive Vice President Valdis Dombrovskis to discuss the U.S. Inflation Reduction Act, according to a statement from Tai’s office.

EU Concerns Over U.S. Legislation

European Union countries are concerned about the $369 billion subsidies for electric vehicles and clean technologies provided by the U.S. legislation. These subsidies, primarily for North American manufacturers, have local content requirements that EU leaders fear may disadvantage European companies.

Optimism for Collaboration

Ambassador Tai expressed optimism that the United States and the European Union can work together to strengthen the global clean energy sector. This collaboration is crucial for achieving their shared goal.

Global Trade Concerns

EU countries, along with South Korea, have raised concerns about the Inflation Reduction Act. The EU is seeking similar treatment to U.S. trade partners Canada and Mexico, but any revisions by the U.S. Congress seem unlikely.

High-Level Task Force

The European Commission and the White House have established a high-level task force to address the issues surrounding the legislation. This task force will facilitate discussions and potential solutions to the challenges raised by the Inflation Reduction Act.

Global Arrangement on Sustainable Steel and Aluminum

Tai and Dombrovskis also discussed the ongoing negotiations for a global agreement on sustainable steel and aluminum. Both parties agreed to maintain close communication as negotiations progress into 2023.

(Reporting by Kanishka Singh in Washington; Editing by David Gregorio)

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Tai, U.S. Trade Official, Holds Talks with EU’s Dombrovskis on Inflation Reduction Act