EU should file complaint with WTO on inflation Reduction Act of US, says legislator

EU should file complaint with WTO on inflation Reduction Act of US, says legislator.

 

According to the head of the European Parliament’s trade committee, the European Union should submit a protest with the World Trade Organization (WTO) about the United States’ green energy subsidy plan in the coming months.

 

So far, the US and the EU have tried to be conciliatory about the law, saying last week that they will work to address the bloc’s reservations about the plan, known as the US Inflation Reduction Act.

 

EU countries are concerned that the $430 billion measure, which includes hefty tax advantages for US firms, could disadvantage European companies ranging from automobile manufacturers to green technology developers.

Officials from both sides are scheduled to meet next week to discuss the matter, but Bernd Lange, chair of the EU parliament’s trade committee, said he no longer anticipates a negotiated settlement because only minor improvements can still be agreed upon through talks.