A level playing field between the EU and the US for EU electric cars in the US market

WASHINGTON, Oct 13 (Reuters) – European Union and U.S. officials are hoping to reach a deal that would give European companies, including electric car makers, the same status as U.S. companies in the U.S. market, to avoid what the EU calls discrimination against its producers in the US Inflation Reduction Act.

The EU says that while it allows tax breaks or government subsidies for purchases of US electric cars such as those made by Tesla (TSLA.O), the US makes such support conditional on the car, or parts thereof, manufactured in the United States.

European Commission Vice President Valdis Dombrovskis, responsible for trade, speaks Thursday and Friday with US Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen on the issue.

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“Last month, the Tesla Model Y was the best-selling car in Germany,” Dombrovskis said at a press briefing.

“This would not have been possible without the non-discriminatory EU subsidy, while electric cars in the EU do not have a similar subsidy in the US, which is discrimination we want to address. “Dombrovskis said.

European automakers – like Volkswagen – are affected by US legislation, which covers a host of other products.

He said the problem also affected a wide range of products in the “green economy” sector, including batteries, hydrogen and renewable energy equipment.

“There is a willingness to engage on the American side on this,” Dombrovskis said.

“We hope we can resolve these issues before they become disputes,” he said, adding that discussions would focus on whether any changes to the EU business statute could be made. by implementing regulations to US law, rather than having to send all of inflation. Reduction Act to Congress for amendments.

US Trade Representative Katherine Tai asked if the issue could be resolved, telling reporters she expected the EU and US to reach an agreement.

“Based on the EU-US relationship, I am confident that we will succeed in solving this problem,” she said after a meeting with Dombrovskis.

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Reporting by Jan Strupczewski; Editing by Jane Merriman and Bernadette Baum

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Denise W. Whigham