US extends subsidies for electric vehicles to foreign companies

The United States Government will allow foreign companies to access new green subsidies for electric vehicles, which were initially going to be restricted to North American companies, but which will now benefit producers in Japan and could also be extended to the European Union (EU). ).

These changes in the United States policy appear in new rules published this Friday by the Treasury Department and which specify the requirements for vehicle producers to access the subsidies established by the Inflation Reduction Act. (IRA).

This law, approved in August 2022, includes an aid package of US$ 370,000 million (about 350,000 million euros) to promote the energy transition and offers tax incentives to companies that manufacture electric vehicles with components made in North America, including Mexico. and Canada, with which the United States has free trade agreements.

In principle, companies in Japan and the EU would not be able to access these subsidies, but Washington is looking for ways not to harm its allies.

In fact, this month, the United States reached a trade agreement with Japan so that it is treated as a preferred trading partner and can benefit from the tax advantages offered by the Inflation Reduction Act, and also promised to start negotiations with the EU to reach a similar arrangement.

In light of these new agreements, the Treasury Department published new rules this Friday in which it establishes that Japan will benefit from the subsidies and affirms that “new agreements” will also be included, such as the one that is now being negotiated with the Union. European.

Several EU countries, including France and Germany, had expressed concern about the Inflation Reduction Act as a protectionist measure and worried that European companies would relocate from Europe to the United States to take advantage of these tax breaks.

Source: EFE