Brussels (EuroEFE).- The European Commission (EC) celebrated this Friday the new guidelines of the United States so that European manufacturers of clean vehicles can benefit from the credits offered by the law on reducing inflation, which from the European Union (EU) had been branded as a protectionist.
“The EU welcomes these guidelines,” the EC said in a statement, appreciating the work done by the working group set up with US officials to address European concerns about this law, which provides aid for around 400,000 millions of dollars for investments in American green technologies.
The Commission noted that, under the new US guidelines, EU companies will be able to access trade credits for clean vehicles under this law without the need to change the established or intended business models of EU producers.
“This is a win-win initiative as it strengthens EU-US cooperation. United States in our common goal of fighting climate change and strengthening transatlantic supply chains,” the Commission said.
He also considered that, thus, US taxpayers will be able to benefit from highly efficient electric vehicles and components made in the EUwhile EU businesses that provide their customers with state-of-the-art clean vehicles through hire-to-buy will be able to benefit from the incentives of this law.
The Commission said it continued to seek “similar and non-discriminatory treatment” for EU clean vehicle makers under the Reduction of Inflation Act credits.
DISCRIMINATORY PROVISIONS
He recognized that this scheme continues to worry the EU, since in its view it contains “discriminatory provisions which in fact exclude” that EU companies can benefit from it.
“Discriminating against clean vehicles and inputs produced in the EU violates international trade law and unfairly disadvantages EU companies in the US market, reduces the choice available to US consumers and ultimately reduces the climate efficiency of this green subsidy,” he stressed.
The EU wants the US to give the same treatment as its partners with whom it has free trade agreements.
“We welcome the US announcement that it will take longer to work on pending guidelineswhich will enable it to address these issues satisfactorily”, noted the EC.
The US Inflation Reduction Act, enacted on August 16 and due to take effect in January, offers generous financial incentives to support the green transition.
In the case of clean vehicles, the two main incentives are tax credit programmes: one for commercial operators and one for private consumers, the Commission explained.
The consumer tax credit contains several provisions, including local content, production or assembly requirements, which “discriminate against” EU car manufacturers“with which there is a risk of weakening competition and raising prices,” he said.
To address these European concerns, the two sides launched a special working group on 25 October.
Edited by Miriam Burgues
