The President of the United States, Joe Biden has just taken a singular step to support the american industry. As in France, electric cars are more expensive in the United States than conventional cars. And just like with us, the government subsidizes them.
7,500 dollars, or approximately 6,000 euros, for any vehicle. To which can be added two other bonuses. First $ 4,500, but only if the car is made in the United States and in a factory where the traditional unions of the automotive industry are represented. If unions are required, it is for favor factories of American brands traditional. Because the factories of foreign manufacturers, Japanese or German, have set up in the southern states, without unions. And there’s another $ 500 extra if the battery is also made on American soil. That is 12.500 dollars au total.
American protectionism
This is called protectionism the most frank. And the American administration justifies it with a simple argument: it is the American taxpayer’s money. It is normal that it serves to support the American economy.
It is even perfectly understandable. It’s simple common sense. Moreover, the situation is similar in China. Foreign manufacturers can only sell their vehicles if they use Chinese batteries. Here again, support for local industry and common sense.
How does it work in France?
However, it does not work at all the same with us. Electric vehicles are also fully subsidized and this can go up to 12,000 euros. Corn no condition is not attached to the payment of this aid.
The car can be Chinese or Patagonian, it will benefit from the same aids as the French and Europeans. Money from French taxpayer is therefore used to subsidize Chinese factories. On the batteries, the situation is a little different since we do not manufacture them on French soil, for the moment at least.
What is it that prevents us from doing like the Americans and the Chinese?
Do this and quite simply forbidden in France but also throughout Europe, discriminate a product depending on their country of origin. It is even the doctrinal, ideological basis of the single European market and of the Treaty of Rome founder, in 1957.
At the time, it was a question of breaking with any form of economic nationalism, to create the European community. We cannot therefore favor national productions, and not even European productions over Chinese or American.
In Europe, all products are considered equally, whatever their nationality. And this also applies to public procurement, that is to say orders placed by administrations, which account for hundreds of billions of euros each year. Only the price is considered and the market must go to the most interesting offer, regardless of the nationality of the supplier.
This therefore means that the Chinese can supply our administrations, to the detriment of French or European producers. While in China, public procurement is very difficult to access for a foreign company. And that in the United States, there is a law, the “Buy American Act”, which requires public buyers to source locally. It would be high time to put an end to this stupidity, and to reform our legislation.
There is an ongoing European project to impose sanctions on companies from countries that discriminate against European companies. Reciprocity is the basis of fair trade.
