The Green Deal, the subsidies split the European Union and the United States. Tai’s strategy

Washington remains relentless on the protectionist measures of its Green Deal: less Friends support It’s more Resettlement Collimated. Brussels, which fears hemorrhaging investments in green technology, is threatening a trade conflict. But the unity of the Western economic front depends on the cooperation of the allies. This is why the next few weeks will be a giveaway

Clouds over the Atlantic show no sign of dissipating. In an interview with financial timesUS Trade Representative Catherine Tai push hard America’s Green Deal (A $370 billion package, filled with subsidies and tax breaks for North American companies.) He then called on the European Union to provide more subsidies to its producers, a position that promises to spark thunder and lightning from parts of Brussels.

Valdis DombrovskisThe European Trade Commissioner said on Monday that the Green Deal “could discriminate against the auto industries [assieme a quelle] of renewable energies, batteries and energy-intensive in the European Union.” The European Union and other allies (including South Korea and Japan) today threaten to use the World Trade Organization to counter US actions.

It is located around Commercial struggle still in its infancy, which nonetheless threatens to shatter a period of relative calm — and cause cracks to emerge in the geopolitical West’s trade front. Allies fear that the US Green Deal will divert investments in green technologies to the states, at their expense. Some EU companies They are already thinking To protect against the European energy crisis by moving activities to the United States.

tones bitter When Washington refused to discuss the matter at the table of the Trade and Technology Council (TTC), the semi-permanent forum between the European Union and the United States also created to resolve commercial disputes. It is therefore difficult for Brussels to take well the US response, which has so far been limited to the creation of a working group that meets next week.

Tai countered European criticism by calling for the 27 to boost support for their producers and reduce dependence on China for strategically important products. Tips perfectly aligned with the EU’s long-term goals (and also it is necessary To remain competitive with respect to the other two superpowers, the United States and China), but it is difficult to implement quickly. Subsidies, for example, are already a thorny issue due to EU restrictions on state aid.

Theme Season From Beijing, on which the EU relies on many green technological solutions (including batteries and solar panels), is more complex. Moreover, it is a common problem between Brussels and Washington, both of which are opposed to their policies Friends support And the Resettlement. The difference is that the EU is very focused on it Friends support To maintain competitiveness and markets to trade with, while the United States as well Joe Biden – At least on the Green Deal side – they seem to prefer today Resettlement Collimated.

For the 27, the competitive advantage of the US green deal is “unacceptable,” he said Joseph SekilaCzech Economy Minister. According to him, the European Union should enjoy the same treatment as Canada and Mexico (whose companies can benefit from Discounts on electric cars). Tae said she refused to say if this would be possible FBut he said there was “the will and political commitment on the part of the highest levels of our government” to reach an agreement.

It’s unclear what Biden could concede to allies without engaging Congress, something that is unlikely to reopen the Green Deal practice. Furthermore, there are only a few days left mid-term, which would likely favor a victory for Republicans (who tend to be more protectionist than Democrats). For their part, EU countries are aware of the sensitive political moment. They know that Biden aims to bolster his country’s industrial base and reap election profits. but pass mid-term And calm the atmosphere, concessions will be expected. Otherwise, in all likelihood, they will counterattack.

For his part, Tay pointed to an alternative model. In August in the United States he adopted A 280 billion law package (52 direct loans) to bring the semiconductor production chain back within its borders. European Union It was already announced Similar measures. For Washington, Brussels should adopt an equivalent approach and develop a new industrial policy parallel to that of the United States to counter it Chinese threat. “Our vision is that industrial policy is not just about us, but it integrates working with our friends and allies” to promote resilience and tackle critical addictions, Tay said. F. It remains to be seen whether this line can convince the European Union.