EU Seeks Exemptions From IRA As Macron Lands In US-The National

Sunniva Rose at The National summarises issues in EU-US relations as French President Emmanuel Macron arrives in Washington, D.C. ahead of state visit: "...relations aren't in a good shape - and a big reason for this is the Inflation Reduction Act. The EU is divided between an aggressive anti-IRA camp led by France, and other countries that are laying low in fear of triggering a trade war. EU countries may attach varying priorities to the IRA's problematic elements, but they all share similar worries...Many fear a trade war between US and EU would benefit China.

• "I should like to warn against conflating the IRA with our broader relationship with the US,” said [Trade Commissioner] Dombrovskis last week. “The last thing we should be doing is creating unnecessary destructions or ... new disputes.”
• For Europeans, the best-case scenario is exemptions. “We can imagine that the US will give exemptions to a certain number of European industries, maybe following the same model applied to Mexico and Canada" said an Elysee source.
• Discussions on the IRA will continue on Dec. 5 when Dombrovskis and Commission Exec VP Vestager will attend a Trade and Technology Council in DC. But discussions are likely to continue after that.Time is running out - the IRA will be implemented in January."