Discussions On Inflation Reduction Act Underway

EU Trade Commissioner Valdis Dombrovskis is meeting with members of the Biden administration to resolve differences with the Inflation Reduction Act. The USD$430 billion legislation to stimulate domestic automotive manufacturing which the EU claims violates WTO principles.

• Dombrovskis said ahead of the meeting of the US-EU Trade and Technology Council: "With all our discussions, we are in a sense making a step forward, but with the Inflation Reduction Act we are making two steps backwards, so we need to reconcile it. I look forward to substantive discussions on the Inflation Reduction Act at the TTC."
• Secretary of Commerce Gina Raimondo: "Last week, I met with [Economy] Minister Bruno Le Maire of France as a part of President Emmanuel Macron's State Visit. We discussed his visit the U.S., the US-French commercial relationship, and the US-EU Trade and Technology Council ministerial."
• In a bilateral meeting with French President Emmanuel Macron last week, President Biden conceded that the IRA may have some problems and the legislation may be tweaked to address European concerns.
• Talks are attended by Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo and Trade Rep Katherine Tai.