It is expected that the European Union, the EU and the US agreement to resolve the conflict sparked by the US Inflation Reduction Act and the IRA’s EV subsidy issue will be outlined next week at the earliest.
According to Bloomberg News on the 3rd local time, the two sides will attempt to reach an agreement in principle on the occasion of a visit to the United States by European Commission President Ursula von der Leyen next week.
An unnamed EU official familiar with the situation said that issues such as key raw materials, labor and sustainability could be included in the agreement, and that discussions between the two sides seemed to be moving toward agreement.
Through this agreement, the EU aims to obtain a status on an equal footing with the countries that have concluded free trade agreements and free trade agreements with the United States.
40% of battery raw materials must be made in the United States to receive the maximum amount of $7,500, or about 9.75 million won, for electric vehicle tax credits under the IRA.
This proportion will rise to 80% in 2027.
However, it has been expected that FTA signatories will have relatively fewer problems due to an exception clause that states that key raw materials produced or processed in countries that have signed FTAs with the United States are treated equally with those of the United States.
YTN Jinho Kim ([email protected])
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