Von der Leyen: “Creating an American-European Anti-China Club on Raw Materials” – Europe

“Today, the production and processing of some commodities of the Green Revolution are controlled by a single country, China. Europe and the United States can build an alternative to this monopoly by creating a Commodity Club. The idea behind this is simple: cooperating with partners and allies for procurement, production and processing gives us opportunity to overcome monopoly. Ursula von der Leyen said so in Bruges.

There is a risk, Ursula von der Leyen said, that the IRA “will lead to unfair competition, and could shut down markets and fragment the same critical value chains that have already been tested by Covid. We must take a hard look at these issues, and in time himself, learn what we can do better. As we do this, we must consider three particularly difficult aspects: first, the “Buy American” rationale underlying a portion of an IRA; second, the taxes that can result in it; and third, production subsidies that could lead to a race for subsidies.”

“The IRA should make us think about how we can improve our regulatory frameworks for government aid and adapt them to a new global environment,” said European Commission President Ursula von der Leyen.