On Sunday August 7, American senators voted on the plan to defend the purchasing power of American citizens proposed by Joe Biden. This plan must also pass the stage of the final vote this Friday, August 12 in the House of Representatives. But even before this last step, some proposals cause tensions. This is the case of the tax credit for the purchase of American electric cars.
The measure was proposed by the US President as part of the fight against climate change. It provides for a subsidy of up to 7,500 dollars (7,300 €) to help with the acquisition of an electric vehicle. On one condition: that it is a “made in USA” construction, right down to the battery.
“A discriminatory project”
On the side of theEuropean Union, this resurgence of Uncle Sam’s protectionism immediately aroused indignation. European Commission spokeswoman Miriam Garcia Ferrer denounced a “Bill affecting transatlantic trade … discriminatory for foreign manufacturers compared to American manufacturers”and incompatible with the rules laid down by the World Trade Organization (WTO).
The 27 are not opposed to the development of electric. They themselves have just voted massive investments to increase the production of batteries and electric vehicles. In all, some thirty projects are underway on European territory to transform the Union into a continent of “100% electric”.
The spokesperson also indicated, during a press conference, that the EU is in favor of tax credits, an important incentive to stimulate demand for electric vehicles and promote sustainable transport. But not to the point of excluding European economic players: the EU has therefore asked its transatlantic ally to ” to delete [les] discriminatory elements of the bill and to ensure that it is fully compliant with WTO rules”.
Expand criteria
Originally, Joe Biden’s measure was intended to reduce American dependence on China, the world’s largest manufacturer of lithium ion batteries. However, on the American side, we also welcome the measure with suspicion. The leader of theAlliance for Automotive InnovationJohn Bozzella, points the finger at legislation that is too restrictive and maintains that 70% of electric vehicle models sold in the United States will not be eligible for the tax credit.
On behalf of the association of American and foreign manufacturers, representing almost all of the cars sold in the 50 states, he is calling for the criteria to be broadened and to include “producing countries that have collective defense agreements with the United States, such as NATO members, Japan and others ».
The new measure worries people all over the world: South Korea has also shared its concerns about the new legislation, which it says violates bilateral free trade agreements. She also called for a relaxation of requirements for battery components and vehicle assembly.