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The dawn of a new era for the world's largest trade relationship was announced last year by President Joe Biden.

After four years of strained relations between the US and the EU, there was hope for a grand detente. Biden halted an aircraft-manufacturing dispute and launched talks to reduce overproduction of steel and aluminum after shelving Trump's tariffs.

Over the course of a year, US allies in the EU have been complaining about unfairness in the Biden administration's industrial policies.

The French President accused the Biden administration of creating a "double standard" that is testing the integrity of the arrangement that governs the exchange of goods and services.

The US and EU trade is the largest in the world.

The US trade representative is pictured.

The law contains unfair subsidies for electric vehicles, renewable electricity, sustainable aviation fuel and hydrogen which could spark a subsidies race and lead to a new trade war.

‘Double Standard’

The first meeting of a task force aimed at resolving Europe's concerns over the inflation reduction act will be held next week.

The test of Biden's reset will be provided by the meeting. A failure to mend fences could undermine the president's goal of economically isolating China.

During a recent event hosted by the Washington-based Center for Strategic and International Studies, a former US Trade Representative said that we have to do a better job of working with our allies.

She said that it was not possible to conduct a trade policy that was alienating all of your other trading partners.

Cecilia Malmstrom, a former European Trade Commissioner, said that this administration talks about friend-shoring and working with allies, but they aren't working with allies.

Some of the thorniest disputes at the WTO have been over industrial subsidies.

Decoupling ‘Impossible’

As the Biden administration has demonstrated an unprecedented level of coordination with Europe on sanctions against Russia and in developing a joint approach to curb some of China's worst trade abuses, the diplomatic hiccup with Brussels came as a surprise.

The Biden administration confronted the non-market economic challenges posed by the PRC, as well as tackled supply chain vulnerabilities, according to a spokesman for the US Trade Representative.

We are trying to address the challenges of the 21st century and deliver durable, resilient and inclusive economic prosperity for all

The US and Europe's efforts to combat the climate crisis may lead to things that cause anxiety.

FTA Talks Unlikely

The US has re-examined the utility of regional accords like the Trans-Pacific Partnership after the Pandemic and Russia's war, according to Tai.

The US-EU Trade and Technology Council is one of the initiatives Tai has focused on in order to harmonize trade and technology standards.

The US trade chief says the deal improves upon predecessor.

European officials hope the talks can move from technical discussions to concrete deliverables when the next Trade and Technology Council meeting is held in December.

People familiar with the matter say that the EU ambassadors want the Biden administration to address their concerns by the December meeting.