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EU says US plan for EV tax breaks discriminatory, may breach WTO rules

The European Union said on Thursday (Aug 11) it was 'deeply concerned' about proposed tax credits...

👤 H K Badal11 Aug 2022 4:06 PM GMT
EU says US plan for EV tax breaks discriminatory, may breach WTO rules


Tesla electric vehicles are shown at a sales and service center in Vista, California, U.S., June 3, 2022.


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The European Union said on Thursday (Aug 11) it was "deeply concerned" about proposed tax credits for purchases of electric vehicles in the United States because they would be biased against foreign producers and may breach World Trade Organization (WTO) rules.

Under a provision of the $430 billion climate and energy bill that was passed by the Senate on Sunday, U.S. buyers of zero-emissions electric vehicles (EVs) would be eligible for tax credits worth several thousand dollars.

However, domestic content conditions would apply to the tax breaks to push the EV industry away from reliance on China and spur local investment in battery minerals and manufacturing.