The US recently passed a $437 billion health, climate and tax law that may be in violation of the World Trade Organization.
The Inflation Reduction Act puts requirement for local content, for local production, which is a concern for the European Commission. We are looking at if it is in line with WTO requirements.
Biden wants to increase domestic production of electric cars and reduce reliance on China for battery components and materials. The tax credits for electric vehicles made in North America are included, but the EU is concerned about more than that.
We will check what our options are to best react to this situation once we have assessed it. We are assessing the options before we make a decision.
South Korea views the US rules that favor American-made electric vehicles and batteries as a betrayal and will probably file a complaint with the World Trade Organization.
Issues over the US Inflation Reduction Act have cast a pall over the talks leading up to the next Trade and Technology Council. Results of the third meeting will be announced before the end of the year.
The issues of trade are making it hard to agree on priorities for the next meeting. If the two sides can't agree on deliverables, there won't be a minister, according to a person familiar with the situation.
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