# EU, U.S. eye level playing field for EU electric cars in U.S. market
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: EU and US on Verge of Agreement over Electric Car Maker
Meta Description: Find out how EU and U.S. officials are working to grant EU companies, such as electric car makers, equal status in the U.S. market to prevent discrimination.
URL: https://financedigest.com/eu-u-s-eye-level-playing-field-for-eu-electric-cars-in-u-s-markethtml

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WASHINGTON (Reuters) -European Union and U.S. officials expect to reach agreement that would grant EU companies, including electric car makers, the same status as U.S. ones in the U.S. market, to avoid what the EU calls discrimination against its producers by the U.S. [Inflation Reduction Act](https://www.financedigest.com/factbox-governments-act-to-ease-inflation-pain.html "Factbox-Governments act to ease inflation pain").

The EU [says that while it allows](https://www.financedigest.com/amazon-may-be-responsible-for-allowing-louboutin-knock-off-ads-eu-court-says.html "Amazon may be responsible for allowing Louboutin knock-off ads, EU court says") government tax breaks or subsidies for purchases of U.S. electric [cars such as those made by Tesla](https://www.financedigest.com/tesla-to-warn-of-data-privacy-risk-from-car-security-cameras-in-germany.html "Tesla to warn of data privacy risk from car security cameras in Germany"), the United States makes such support conditional on the car, or parts of it, being made in the United States.

European Commission Vice President Valdis Dombrovskis, responsible for trade, is holding [talks on Thursday and Friday](https://www.financedigest.com/extraordinary-rollercoaster-good-friday-talks-remembered-25-years-on.html "‘Extraordinary rollercoaster’, Good Friday talks remembered 25 years on") with U.S. Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen on the issue.

Last [month Tesla model Y was the most sold car](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") in Germany,” Dombrovskis told a news briefing.

That would not have been possible without the un-discriminatory EU subsidy, while EU [electric cars](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") do not get a similar subsidy in the U.S., which is discrimination that we want to address,” Dombrovskis said.

EU [car makers](https://www.financedigest.com/exclusive-indian-car-makers-propose-tax-cut-on-imports-in-trade-deal-with-britain.html "Exclusive-Indian car makers propose tax cut on imports in trade deal with Britain") – like Volkswagen – are affected by the U.S. legislation, which [covers a host of other products](https://www.financedigest.com/fortified-dairy-products-market-outlook-cover-new-business-strategy-with-upcoming-opportunity-2022-to-2032.html "Fortified Dairy Products Market Outlook Cover New Business Strategy with Upcoming Opportunity 2022 to 2032").

He said the problem also concerned a wide range of goods from the [“green economy”](https://www.financedigest.com/italys-a2a-trims-green-investment-plan-citing-economy-volatile-markets.html "Italy’s A2A trims green investment plan citing economy, volatile markets") sector, including batteries, hydrogen, and renewable energy equipment.

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

We hope we can [resolve these issues before they become disputes,”](https://www.financedigest.com/russias-sberbank-urges-glencore-to-resolve-dispute-over-oil-bill.html "Russia’s Sberbank urges Glencore to resolve dispute over oil bill") he said, adding talks would focus on whether changes to the status of EU companies could be made through implementation of regulations to the U.S. law, rather than having to send the whole [Inflation Reduction Act back](https://www.financedigest.com/love-in-a-time-of-inflation-how-much-will-valentines-day-set-you-back.html "Love in a time of inflation: how much will Valentine’s Day set you back?") to Congress for amendments.

U.S. Trade Representative Katherine Tai, asked if the [issue could be resolved](https://www.financedigest.com/apple-says-issues-with-imessage-facetime-resolved35792.html "Apple says issues with iMessage, FaceTime resolved"), told reporters she expected the EU and U.S. would reach agreement.

“On the strength of the EU-U.S. relationship, I have every confidence we will [work through this,” she said after a meeting](https://www.financedigest.com/meetings-in-the-metaverse-how-likely-is-this-the-future-of-work.html "Meetings in the metaverse – how likely is this the future of work?") with Dombrovskis.

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


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