Electric cars in the USA: The EU denounces a discriminatory American measure

Electric cars in the USA: The EU denounces a discriminatory American measure

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Electric cars in the USAEU denounces discriminatory US measure

Brussels is concerned about the tax credit provided in the United States for the purchase of an electric car, which discriminates against European car manufacturers.

Electric vehicles from the American car company Tesla.

AFP

The EU said on Thursday it was “extremely concerned” by the expected implementation in the United States of a tax credit of up to $7,500 for the purchase of an electric car, denouncing a discriminatory measure for European car manufacturers. After 18 months of negotiations, the US Senate adopted President Joe Biden’s grand plan on climate and health on Sundayapproving in particular this tax credit for the acquisition of an electric vehicle leaving an American factory and equipped with a battery produced in the United States.

“The EU is extremely concerned about this bill affecting transatlantic trade. We think it discriminates against foreign builders compared to American builders,” said European Commission spokeswoman Miriam Garcia Ferrer. In addition, such a provision “would be incompatible” with the rules of the World Trade Organization (WTO), she judged. Brussels and Washington have had several major disputes before the WTO in recent years, in particular over aid to the American aircraft manufacturer Boeing or American customs duties on European steel.

Inflate European production

The electric car tax credit, which must now be voted on by the House of Representatives before its enactment, comes at a time when Europeans are seeking to inflate their own production of electric batteries with colossal investments. “Tax credits are an important incentive to encourage demand for electric cars (…) but we must ensure that the measures introduced are fair,” said the spokesperson during a regular press briefing. “We therefore continue to urge the United States to remove these discriminatory elements from the bill and ensure that it is fully WTO compliant,” she said.

For its part, the Alliance for Automotive Innovation, a group of American and foreign manufacturers representing nearly all the cars sold in the United States, finds the bill too restrictive. According to its CEO, John Bozzella, some 70% of electric vehicle models currently sold in the United States would not be eligible for the tax credit. He urged Washington to expand the criteria for the origin of battery components, to “include producing countries that have collective defense agreements with the United States, such as NATO members Japan and others”.

(AFP)

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