EU Says It Has Serious Concerns About Biden’s Inflation Reduction Act

• The European Union has “serious concerns” about the U.S. Inflation Reduction Act, saying it breaches international trade rules.
• The sweeping tax, health, and climate bill was approved by US lawmakers in August and includes a record $369Bn in spending on climate and energy policies. The landmark package comprises tax credits for electric cars made in North America and supports U.S. battery supply chains.
• European officials have acknowledged the green ambitions associated with the package, but they are worried about “the way that the financial incentives under the Act are designed,” which will be presented to U.S. officials.
• In essence, the EU is worried about potential new trade barriers on European electric vehicle producers. And they are not the only ones, South Korea, for instance, has also brought up the same concern.
• Ngozi Okonjo-Iweala, director general of the World Trade Organization, said Monday that countries need to be “very careful that whatever policies [they] are taking should not be discriminatory, and should not favour domestic goods.”

(Source: CNBC)