Posted on 11/29/2022 5:49:22 AM PST by FarCenter
President Emmanuel Macron begins his three-day state visit to the US on Wednesday bolstered by shared bilateral visions on Russia’s invasion of Ukraine and China’s assertiveness in the Indo-Pacific. But President Joe Biden’s latest Inflation Reduction Act has alarmed the EU, and the French leader will have to stake a firm position on US subsidies and protectionism.
The official billing ahead of the first state visit of Joe Biden’s presidency was all roses, with the White House describing the guest, French President Emmanuel Macron, as the “dynamic leader” of America's oldest ally.
...
But there’s a thorn in the Old Continent’s side as Macron begins his three-day visit to the US on Tuesday. Tensions have been simmering between Europe and the USA over the Inflation Reduction Act (IRA), which Biden signed into law on August 16, 2022. The law authorises a $370 billion package of green subsidies, which will be allocated to the construction of wind turbines, solar panels, microprocessors and electric vehicles.
The most emblematic measure of Biden’s colossal plan, but also the most controversial, is a generous tax credit of up to $7,500 reserved for buyers of an electric vehicle manufactured in a US factory and equipped with a locally manufactured battery. This would give a boost to the establishment of sustainable industries on US soil and effectively compete with China, which is at the forefront in this field.
But these massive subsidies will also have the adverse consequence of excluding European companies from the US market by favoring Elon Musk's Tesla over German BMWs or French Renaults.
"I think that this is not in line with the rules of the World Trade Organization and that it is not in line with friendship," said Macron after a meeting with representatives of 50 French industrial sites in early November.
(Excerpt) Read more at france24.com ...
Airbus
Hot airbus.
French “drawing lines”... how horrifying.
GTH Macron. I for one do not care what you think. The United States of America has every right to want to protect our people, our economy and our shores. We all know you are a WEF graduate and want the USA to take a knee to the EU and the rest of the world. Not doing it.
What the article is saying is this...The French (and the EU) want their cut. Time to start severing the cords.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.