European Commission Chairwoman Ursula von der Leyen and US President Joe Biden have failed to finally resolve the trade dispute over US subsidies for green technology, Das Erste reports. However, during the meeting at the White House, the two sides “took a significant step towards each other”. They said they would “immediately start negotiations on a critical minerals agreement” that would abolish tax disadvantages for European raw materials in the US.
After the meeting with US President Joe Biden, European Commission President Ursula von der Leyen “looked pleased”. “It was a very good, very constructive conversation,” she said, reports Das Erste.
At the start of the meeting, sitting next to the US president at the White House, she stressed that the EU and the US were “not just partners, but good friends”. Biden, for his part, noted that the head of the European Commission was doing a “great job”.
In the beginning, the two sides exchanged pleasantries. Then, in a closed-door conversation, Biden and von der Leyen “took a significant step towards each other” in the trade conflict over US subsidies for green technology. While they failed to finally resolve the conflict, they have at least reduced its severity. “We intend to start negotiations without delay on an agreement on critical minerals,” the European Commission president and the US president said in a joint statement. The minerals in question are those necessary for the production of batteries for electric cars.
Von der Leyen explained that the aim is to conclude an agreement whereby essential minerals mined or processed in the EU would be treated in the US subsidy process as if they had been mined in the US.
In other words, the future agreement should provide for the elimination of tax disadvantages for European raw materials in the US. This would lead to a reduction in trade conflict. This is because EU countries, including Germany, fear that European companies will start shifting production, for example of batteries for electric cars, to the US if they can only take advantage of tax breaks on US soil.
The trade conflict has been triggered by the so-called Inflation Reduction Act in the US. It provides for billions of dollars in investments to combat climate change. However, the tax incentives only apply to green technologies that are made with US components and assembled in the US.
At the beginning of the meeting, von der Leyen said: “I think it’s wonderful that so much money is being invested in green technologies these days. After the meeting, she reiterated that she welcomed the inflation-targeting programme. According to her, this is a “massive investment in clean technology” and the EU, with its green industry programme, is also betting on this.
US President Biden has already made it clear that no amendments will be made to the US Inflation Reduction Act. But in the area of its application, the US can go along with the EU – and they are apparently doing so. At least Ursula von der Leyen and Joe Biden have started talks to mitigate the negative consequences for the EU, Das Erste writes.
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel