The United States and European Union agreed recently to intensify talks to resolve EU concerns over major subsidies for American companies contained in a US clean energy law.
Although no deal was reached at a meeting of the bilateral Trade and Technology Council, the two sides pledged to continue work on preliminary progress and said they would push for a solution that benefits both US and European firms, workers and consumers as well as the climate.
“We acknowledge the EU’s concerns and underline our commitment to address them constructively,” the two sides said in a joint statement after the meeting at the University of Maryland in College Park, located just outside Washington DC.
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“We underline the TTC’s role in achieving this and in supporting a successful and mutually supportive green transition with strong, secure, and diverse supply chains that benefit businesses, workers, and consumers on both sides of the Atlantic,” it said.
The dispute revolves around the US Inflation Reduction Act which offers about €357 billion in new and extended tax credits to help the US clean energy industry as well as buyers of qualifying electric vehicles made in North America.
But European leaders have expressed alarm that the subsidies would be an enormous setback for European companies.
French President Emmanuel Macron raised the issue directly with President Joe Biden during his state visit to Washington last week during which Biden and other US officials said they were willing to address the matter, including “glitches” in the law.
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US Secretary of State Antony Blinken noted that as soon as Washington became aware of the EU’s concerns it set up a task force to deal with them.
“Today, I think we advanced that discussion,” said Blinken, who co-chaired the meeting with the Commerce Secretary Gina Raimondo and the Trade Representative Katherine Tai along with European Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager.
“Coming out of these conversations and feeding into the work of the task force, I’m convinced that we’re continuing to give momentum to that conversation and to working through the differences,” he said.
EU Commissioner Vestager agreed, saying Monday’s discussion was “really helpful to show that there is a real concern.”
“To have the discussions that we have had today, to have the feedback from our US partners, I think that is of critical importance to enhance the relationship that we have created within the framework of the Trade and Technology Council,” she said.
Vestager also said that as the US and EU continue to cooperate on the subsidy issue while opposing Russia’s invasion of Ukraine, Washington’s commitment to fighting climate change was even more welcome.
