EU should file WTO complaint over IRA-Lange

(Reuters) – The European Union (EU) is expected to file a complaint with the World Trade Organization (WTO) in coming months over the U.S. Inflation Reduction Act (IRA). , media reported on Sunday, citing the chairman of the European Parliament’s Committee on International Trade.

The Inflation Reduction Act (IRA), a law enacted in mid-August by US President Joe Biden, provides billions of dollars in funding to support projects in the field of the fight against global warming, including tax credits and grants to support companies’ energy transition.

For many observers, this will have the effect of attracting many foreign investments in the field of energy transition to the United States, to the detriment of other countries for which these measures distort competition.

US and EU officials are due to meet next week to discuss the issue, but Bernd Lange said he no longer expected a negotiated solution, as only slight changes could still be decided in talks.

“I don’t think much will change in substance, the law having already been passed,” said the chairman of the European Parliament’s Committee on International Trade, quoted by the Funke press group, adding that the filing of a complaint to the WTO could send the message that the law was incompatible with the rules of the organization.

(Report; French version Camille Raynaud)

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