Investment program debate
Habeck expects solution in trade dispute with USA
02/06/2023 10:12 am
With the Inflation Reduction Act, the USA is raising concerns about competitive disadvantages in Europe. During a visit to Washington, Economics Minister Habeck wants to work to defuse the conflict. Although “not today and tomorrow, but then in the next few weeks” he expects solutions.
Economics Minister Robert Habeck hopes his trip to Washington will bring progress in the discussion between the EU and the USA on America’s controversial anti-inflation law. “I’m actually quite confident that it may not be possible to find further solutions today and tomorrow, but then in the next few weeks,” said the Green politician before leaving for the US capital. The trip should serve to explore solutions for the problematic parts of the industrial program IRA. The talks should also deal with trade policy and the geopolitical situation.
The so-called Inflation Reduction Act (IRA) provides for billions in investments in climate protection, but ties subsidies and tax credits to companies using US products or producing them themselves in the USA – which causes concerns in Europe about competitive disadvantages. Associations warn of a trade dispute and demand better production conditions in Europe.
After his arrival, Habeck wants to meet German company representatives in the USA, among other things. On Tuesday, he and his French counterpart Bruno Le Maire will meet US Treasury Secretary Janet Yellen, US Trade Representative Katherine Tai and US Secretary of Commerce Gina Raimondo, the Federal Ministry of Economics and Technology said. It is important to promote environmentally friendly technologies together, it said. This must be done in fair competition.