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

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

The European Union and US officials anticipate to reach an agreement that would allow EU businesses, including electric car manufacturers, the same status as USones in the US market as the EU''s, to avoid discrimination against their producers under the USInflation Reduction Act.

While the EU offers public tax breaks or subsidies for Tesla purchases, the United States makes such assistance contingent on the sale of the automobile or parts thereof.

Vice President Valdis Dombrovskis of the European Commission, responsible for commerce, is in discussions on Thursday and Friday with USTrade Representative Katherine Tai, Commerce Secretary Gina Raimondo, and Treasury Secretary Janet Yellen on this topic.

"Last month Tesla model Y was the most expensive car in Germany," Dombrovskis told a news briefing.

"That would not have been possible without the un-discriminatory EU subsidy," said Dombrovskis. EU electric automobiles do not get a similar subsidy in the United States, which is discrimination we want to address.

The US legislation, which covers a slew of other goods, has affected EU automobile manufacturers - like Volkswagen.

The issue relates to a wide variety of goods from the "green economy" sector, including batteries, hydrogen, and renewable energy equipment.

"There is a willingness to engage on the US side on this," Dombrovskis said.

"We want to ensure that we can resolve these issues before they become litigates," he said, adding that discussions will focus on whether or not changes to EU companies'' status may be made through the implementation of restrictions to the USlaw rather than having to send the entire Inflation Reduction Act back to Congress for modifications.

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

"I have every confidence we will work through this on the strength of the EU-US relations," she said following a meeting with Dombrovskis.

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