European Union Commissioner Thierry Breton announced that they will take action against Washington's protectionist measures.
The European Union may turn to the World Trade Organization (WTO) because of Washington's protectionist measures and US state aid, which significantly affects the car industry, said Thierry Breton, the European Union Commissioner responsible for the internal market, in Brussels on Monday, before the meeting of the Eurogroup, which brings together the finance ministers of the eurozone.
Breton said that if the United States does not respond satisfactorily to the concerns raised, the union could respond with "retaliatory measures" to Washington's anti-inflation law passed in August, which includes tax breaks for electric cars and batteries made in the United States.
Substantial state aid is "contrary to WTO rules"
he highlighted.
Bruno Le Maire, France's Minister for Economy and Finance and Industrial and Digital Sovereignty, said ahead of the Eurogroup meeting that the huge subsidies to the US economy require a "coordinated, unified and strong" response from Europeans.
US subsidy law 'contrary to all rules of international trade'
he underlined.
According to the French minister, the law, which the American government calls an environmental protection and social reform program, is an investment plan of hundreds of billions of dollars, and as a result, "some large foreign companies that wanted to establish themselves in Europe are now hesitating whether to establish a site in Europe or America . Because of this, investments worth around ten billion euros and thousands of industrial jobs are at stake in France alone," he warned. He also said: in some cases, the amount of subsidies offered by the Biden government is four or even ten times the maximum amount of subsidies allowed by the European Commission.
(MTI)
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