Electric cars
Electric cars: the EU is concerned about the tax credit planned in the United States
The EU said it was “extremely concerned” by the expected introduction in the United States of a tax credit of up to $ 7,500 for the purchase of an electric car, denouncing a discriminatory measure for European car manufacturers.
After 18 months of negotiations, the US Senate on Sunday adopted President Joe Biden’s grand plan on climate and health, approving in particular this tax credit for the acquisition of an electric vehicle leaving an American factory and equipped with a battery produced in the United States.
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“The EU is extremely concerned about this transatlantic trade bill. We believe it discriminates against foreign manufacturers compared to American manufacturers,” said European Commission spokeswoman Miriam Garcia Ferrer.
Moreover, such a provision would be incompatible with the rules of the World Trade Organization (WTO), she ruled. Brussels and Washington have had several important disputes before the WTO in recent years, notably over aid to the American aircraft manufacturer Boeing or US tariffs on European steel.
The electric car tax credit, which must now be voted on by the House of Representatives before it is enacted, comes at a time when Europeans are looking to inflate their own production of electric batteries with colossal investments.
“Tax credits are an important incentive to encourage demand for electric cars (…) but we need to make sure that the measures introduced are fair,” the spokeswoman said at a regular press briefing.
“We therefore continue to urge the United States to remove these discriminatory elements from the bill and ensure that it is fully WTO compliant,” she said.
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For its part, the Alliance for Automotive Innovation, a group of American and foreign manufacturers representing nearly all cars sold in the United States, finds the bill too restrictive: some 70% of electric vehicle models currently sold in the United States would not be eligible for the tax credit.
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