French President Emmanuel Macron plans to discuss the impact of Washington’s anti-inflation package on transatlantic trade when he meets with US counterpart Joe Biden next week.
Macron will try to negotiate “exceptions” for European industries particularly affected by US subsidies, an adviser to the French president said in Paris on Friday.
France and other European countries are increasingly affected by Washington’s Inflation Reduction Act (IRA), which Biden signed in August. The law aims to accelerate the transition to a low-emission economy and includes $370 billion in renewable energy subsidies and tax breaks for electric cars and batteries “Made in the USA.”
The main concern is that “US investment in Europe will be withdrawn,” Macron’s adviser said. However, one could imagine that “the US government would agree to exemptions for some European industrial sectors, perhaps similar to what they are doing for Canada and Mexico,” he adds.
“Buy Europe Act” controversial
Macron has long advocated a “Buy Europe Act” that would create incentives and conditions for consumers and governments to buy products made in the EU. However, the idea has met with resistance in countries such as Germany and the Netherlands, which are concerned about costs and trade implications.
Another bone of contention between the European Union and the US is the high profits US energy exporters make by supplying LNG to Europe. Europe suffers most from sanctions against Russia, Macron’s adviser said. “We see the risk of creating a divide between Europe and the US,” he added, stressing the need for a new “synchronization”.
Macron will arrive in Washington Tuesday night for a two-day visit, which will include a state reception at the White House. (aeg/sda/afp)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
