The European Union (EU), ahead of the third meeting of the Trade and Technology Committee (TCC) with the U.S. next month, has publicly criticized the US “Inflation Reduction Act (IRA)” to increase its bargaining power.
EU Commission Trade Commissioner Valdis Dombrowski held a press conference after a trade meeting on the 25th and said, “What we want is fairness,” targeting the U.S. inflation reduction law. “We want European companies and exports to be treated the same in the U.S.” They argue that European companies and exports should not be discriminated against in the U.S. just as U.S. companies and exports are treated in Europe.
The European Union held its first meeting of the Trade and Technology Committee in September last year to restore deteriorated economic cooperation under the Donald Trump administration and promote “reorganization of supply chains” work surrounding China. This third meeting is likely to be the last meeting before the law is enforced.
In August, U.S. President Joe Biden signed the law, which calls for investing $375 billion in climate change response projects such as electric vehicles and renewable energy. At the same time, the law limited companies that receive benefits such as tax cuts and subsidies to those that produced products in North America or the United States. As a result, not only South Korea, but also the European Union and Japan have been voicing that the law is against World Trade Organization (WTO) regulations.
Meanwhile, French President Emmanuel Macron will visit the United States next week to meet with President Biden. President Macron will raise the issue once again regarding the inflation reduction law at the meeting, according to AFP. In response to the U.S. move, President Macron is insisting on introducing a “European Product Purchase Act” that focuses on providing subsidies and other benefits to European companies.