European Union shouts discrimination

The Biden administration has been working on the “Health and Climate” plan for more than 18 months. And last Sunday, the US Senate adopted this plan, which includes, for the part of the automobile that interests us here, assistance with the purchase of electric cars. In this case, a tax credit, which can be up to $7,500 (€7,300.40 during the day), an amount greater than the maximum bonus of €6000 that an individual can benefit from in France.

But it is conditional on the departure of the said car to an American factory, and that its battery is made on American soil. This automatically deprives European electric models of this support.

The European Union is deeply concerned about the impact of this law on transatlantic trade. We think it discriminates against foreign builders versus US buildersThis was confirmed by a spokeswoman for the European Commission, Miriam Garcia Ferrer.

yes. so what ? You might be tempted to respond to those who admire Uncle Sam’s country’s ability to practice unrestricted protectionism, in order to protect and even enhance their industry.

Isn’t every country entitled to promote its own production? Well, no, it’s not that simple. For European authorities, this tax exemption would in fact be incompatible with the rules of the World Trade Organization (WTO).

Tax credits are an important incentive to encourage demand for electric cars (…) but we need to make sure that the measures introduced are fairThe spokeswoman said during a regular press conference.So we continue to urge the United States to remove these discriminatory elements from the bill and ensure that it is fully WTO compliant.‘, she indicated.

American manufacturers are also not satisfied

In any case, this bill must now be approved by the House of Representatives, the equivalent of our National Assembly. But this measure does not only make people groan in Europe. Even within the USA, the Alliance for Automotive Innovation (a group of national and foreign manufacturers, representing nearly all cars sold) sees the procedure as “too restrictive”.

According to its CEO, John Bozella, about 70% of electric vehicle models currently sold in the United States will not qualify for a tax credit. Simply because, like us, American manufacturers also rely on foreign countries to supply them with batteries.

He urged Washington to expand origin standards for battery components toTo include producing countries that have collective defense agreements with the United States, such as NATO members, Japan, etc.“.

As is often the case, no one is happy. case to follow.

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