EU and US seek solution in dispute over electric cars
Trade ministers from EU member states met in Prague, the capital of the Czech Republic. Making a statement at the end of the meeting, the EU’s mandate chairman, Czech Industry and Trade Minister Jozef Sikela, said: “International trade is in a difficult situation.” he said.
Sikela recalled that the war between Russia and Ukraine began when world markets began to recover after the Kovid-19 outbreak.
“FINDING NEW MARKETS IS VERY IMPORTANT”
Noting that the war had serious social and economic consequences with the energy crisis, Sikela said that it has become very important not to find new markets in the trade of goods and services.
“The EU needs to strengthen trade ties with partners that are credible and share similar values,” Sikela said. he said.
Noting that US Trade Representative Katherine Tai also attended part of the meeting, Sikela said: “The trade links between the EU and the US are very important. We have to focus on deepening this and collaboration.” she used the phrase.
On the US inflation reduction law, Sikela said, “Our expectation is that EU countries will be exempt from this law.” he said she.
CANADA AND MEXICO EXCLUDED
Recalling that the US granted exemptions to Canada and Mexico from the law, Sikela noted that the EU and US sides are continuing their negotiations to find a solution to this issue.
Valdis Dombrovskis, Senior Vice President of the EU Commission, said that the law to reduce inflation in the US worries many member states and companies.
“Trade relations with the United States are of strategic importance,” Dombrovskis said, adding that especially the auto, battery and energy sectors are concerned about the law in the United States.
Recalling that they set up a working group to resolve this issue, Dombrovskis said: “Our goal is to find a solution here. At this stage, we focus on solving the problem through negotiation.” he said he.
“The proper solution is to exempt the EU from this law like Canada and Mexico,” Dombrovskis said, emphasizing that they would focus on negotiations.
Dombrovskis noted that at the meeting they had strategic discussions about meeting trade policy with the requirements of the day, saying they wanted to make a trade deal with New Zealand, Chile and Mexico next year, and make progress on trade. negotiations of agreements with Australia, Indonesia and India.
ELECTRIC CAR INCENTIVE DISCOUNT
The US anti-inflation bill also plans to incentivize the purchase of electric cars with tax cuts. In this context, it is planned to grant tax deductions to electric vehicles that use batteries produced in North America and that contain minerals from the mines of this region.
The EU considers these tax cuts, which do not cover its own cars, to be discriminatory. (AA)