The British government expressed its concern about the possible repercussions of the subsidy stipulated in the US plan against climate change, especially for manufacturers of electric cars, in a letter sent to Washington and published by British media, Friday.
The letter, published by the Financial Times and The Times, said the US plan could “harm many economies around the world and have an impact on global supply chains for batteries, electric vehicles and renewable energy in a broad sense.”
In the letter to US Trade Ambassador Catherine Tay seeking “clarifications,” British Trade Minister Kimmy Badinoch said the bill “endangers” “the common goals of promoting free and fair trade internationally”.
Agence France-Presse tried to contact the British Ministry of Trade, to no avail.
The EU also raised concerns about these subsidies at the World Trade Organization in mid-December.
The European Union is concerned about the potential impact of the Inflation Reduction Act (IRA), a $420 billion plan funded by US President Joe Biden dedicated to protecting against climate change, which was approved last summer.
The plan calls for reforms and grants to boost US-based businesses, particularly in the electric vehicle and renewable energy sectors.
Washington wanted to reassure the Europeans and declared itself open to possible “adjustments”.
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