Amid rising tensions over American subsidies for its green industry which Europe views as anti-competitive, the US and the European Union officials began talks on trade and technology on Monday.
The measure, which is intended to hasten the US’s shift to a low-carbon economy, includes tax breaks for US-made electric vehicles and batteries as well as almost $370 billion in green energy subsidies.
The IRA has drawn harsh condemnation from EU nations, which saw it as a threat to European jobs, particularly in the energy and automotive industries.
The National Security Council said that the goal of Monday’s meetings was to expand the bilateral economic and investment ties.
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The Council added that the United States was committed to understanding EU concerns on the IRA.
However, according to his office, EU Internal Market Commissioner Thierry Breton has chosen not to attend the meetings because he feels that they no longer adequately address the issues that many European industry ministers and companies find to be of concern.
Breton stated last month that if the United States did not remove its subsidies, he would file a complaint with the World Trade Organization and consider retaliatory actions.
During a state visit last week, US President Joe Biden and his French colleague Emmanuel Macron spoke about the plan. Although he emphasized that he would not apologise for the act, which was never intended to harm US partners, Biden stated that both parties have agreed to discuss concrete efforts to coordinate and synchronize their policies.
The European Commission Executive Vice Presidents Margrethe Vestager and Valdis Dombrovskis, Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo and Trade Representative Katherine Tai serve as co-chairs of the Trade and Technology Council.
Story was adapted from the Guardian.
