Dombrovskis: Moderately Optimistic About Metals Deal With US

EU Commission Vice President Valdis Dombrovskis has told reporters that he is "moderately optimistic" that the EU and US can strike an agreement on green steel and aluminum before an October deadline.

• Dombrovskis said yesterday after meetings with Biden administration officials: “On the critical raw materials agreement, from the EU side, we are willing to move forward as fast as possible."
• Following a meeting with US Trade Rep Katherine Tai, Dombrovskis said a deal on metal is a important step towards “addressing discriminatory elements” in the Inflation Reduction Act.
• Dombrovskis noted that a similar deal between the US and Japan which provides an alternate pathway for Tokyo to access IRA incentives despite not having a free trade agreement with the US in place, a stipulation of the IRA.
• Dombrovskis said: “We already see the US has an agreement with Japan, which shows it is possible to make progress," adding that the US-Japan deal is a "good basic for US-EU discussions."
• A number of US lawmakers, including IRA architect Sen Joe Manchin (D-WV), have accused the Biden administration of undermining the original intent of the legislation by exploiting a loophole in the definition of free trade agreement.