EU electric car manufacturers may soon have a level playing field with US electric car manufacturers for subsidies, according to details

EU electric car manufacturers may soon have a level playing field with US electric car manufacturers ...

The European Union and US officials expect to reach an agreement that would allow EU corporations, including electric car manufacturers, to have the same status as USones in the US market, avoiding what the EU calls discrimination against its producers by the USInflation Reduction Act.

The EU claims that while it allows government tax breaks or subsidies for Tesla purchases, the United States conditionally approves the automobile or parts of it in the United States.

On Thursday and Friday, Vice President Valdis Dombrovskis, responsible for trading, is holding discussions with USTrade Representative Katherine Tai, Commerce Secretary Gina Raimondo, and Treasury Secretary Janet Yellen on this topic.

"The first month in a row, Tesla model Y was the most expensive vehicle in Germany," Dombrovskis told a news briefing.

"That would not have been possible without the un-discriminatory EU subsidy," says Dombrovskis. EU electric cars do not receive a similar subsidy in the United States, which is discrimination that we should address.

The US legislation, which covers a slew of other goods, has a bearing on European automobile manufacturers.

He said the problem involved a wide range of goods from the "green economy" industry, including batteries, hydrogen, and renewable energy equipment.

Dombrovskis says there is a willingness to engage on the US side in this regard.

"We hope to resolve these problems before they become disputes," he added, putting discussions on whether changes to EU firms might be made by the implementation of regulations to the USlaw rather than having to send the whole Inflation Reduction Act back to Congress for amendments.

Representative for USTrade Katherine Tai, who asked if the issue would be resolved, told reporters she expects the EU and the United States to reach an agreement.

After a meeting with Dombrovskis, I have every confidence that we will go through this on the strength of the EU-US relations.

2022 Thomson Reuters