EU Should Challenge U.S. Inflation Act at WTO, Says Lawmaker

TL/DR –

The European Union (EU) should file a complaint with the World Trade Organization (WTO) regarding the United States’ green energy subsidy package, according to the head of the European Parliament’s trade committee. EU members believe the $430 billion bill, which includes generous tax breaks for U.S. companies, could disadvantage European companies, including car manufacturers and green technology producers. The EU does not expect a negotiated solution as the law has already been passed, hence, filing a complaint with the WTO would be a way to express that the bill is incompatible with the organization’s rules.


EU to File WTO Complaint against US Green Energy Subsidies

The European Union (EU) is expected to file a World Trade Organization (WTO) complaint within months concerning the United States’ green energy subsidy package, according to the chair of the European Parliament’s trade committee.

Both the EU and the US have previously shown willingness to address concerns about the package, formally known as the U.S. Inflation Reduction Act. However, the generous tax breaks included in the $430 billion bill are causing anxiety among EU members. European car manufacturers and green technology makers fear they may be disadvantaged by the Act.

Trade officials from both regions are slated to discuss the issue in an upcoming meeting next week. However, Bernd Lange, the head of the EU’s trade committee, has expressed skepticism about a negotiated solution being reached, as he believes only minor modifications can now be made through talks.

Lange suggested taking the issue to the WTO, stating it would signal that the controversial bill breaches the organization’s guidelines. This move could potentially lead to revisions in the Act to ensure fair competition in the global green energy market.


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