HE the drum beat of a trade war and subsidies between United States and European Union It has been roaring ever since Washington passed the Inflation Reduction Act last summer. dropped a few decibels this Friday. after a while Meeting at the White House among the president of the United States, Joe Bidenand the President of the European Commission, Ursula von der Leyen a glimpse of what could be ceasefire route.
The duo agreed to start negotiating a deal “immediately” HE would open the US market so calledcritical materials” Europe those used in green technologies that the law threatens to exclude. They also agreed to start. dialogue to avoid a potential subsidy war.
A protective law
The law, signed by Biden, set aside $369,000 million for the promotion of clean technologies. Giving was among his provisions. $7500 loan to Americans purchasing new or used electric cars, but only provided they are manufactured in the USA and meet stringent requirements for the “critical materials” used to make their batteries. this did Alarms in Brussels (as well as potentially affected countries such as Japan or the UK) have seen their access to the US market cut short.
Also, a law corporate flight It’s a real fear that the European Commission responded this Thursday by approving a measure that allows European governments to meet public subsidies that third parties (like the US) can offer to prevent displacement.
Biden and Von der Leyen’s meeting in the Oval Office, which the European president described as “very good”, bore fruit. The joint statement includes several, including launching negotiations that would allow certain critical minerals mined or processed in the European Union to gain approval. benevolence and count As manufactured in the USA, as required by Biden’s law. This is an idea that has also been evaluated with other affected countries such as Japan.
The two leaders also announced the start of the promised “Clean Energy Incentives Dialogue”. “coordinating” subsidy programs and to assist and encourage what Von der Leyen later described as “transparency” about these aids. “Both sides will take action” prevent disruption to transatlantic trade and investment flows may arise from their respective incentives”, and also mentions: It works “against zero-sum competition”.
china and russia
Washington is not only de-escalating tensions with Europe, with both opening negotiations on critical minerals and dialogue on incentives. Trying to reduce the influence and dependency on China, something referred to directly or indirectly in a joint communiqué.
Biden and von der Leyen also touched on the issue: ukraine War Cooperation, Dealing with matters such as financial support to Kiev or assistance to refugees. However, as Von der Leyen explained in his statements to the press, the focus was placed on this area. sanctions imposed on Russia by aggression, and especially in its implementation 10 Penalty Packs Approved by the EU, which “avoids bypassing” these sanctions. Also, in this area indirect message to Beijing, Washington accuses Moscow of considering arms, and the statement speaks of “taking new steps together”. stop anyone who can “support the war machine””.