Amid trade dispute, US and EU to seek
minerals agreement, talks on subsidies
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[March 10, 2023]
WASHINGTON (Reuters) - Amid trade frictions, President Joe Biden
and European Commission President Ursula von der Leyen hold talks on
Friday that may lead to negotiations on critical minerals used for
electric vehicles and government subsidies, U.S. officials said.
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President of the European Commission Ursula
von der Leyen speaks with U.S. President Joe Biden at the meeting of G20
leaders on November 15, 2022 in Bali, Indonesia. Leon Neal/Pool via
REUTERS |
Biden and von der Leyen are to meet at the White House at 2 p.m.
EST (1900 GMT) against a backdrop of European complaints that
subsidies, including in the U.S. Inflation Reduction Act, will
divert investment away from Europe and hurt their economies.
Senior Biden administration officials who briefed reporters
ahead of the talks said they hope the two leaders agree to
launch negotiations on a critical minerals agreement for
electric vehicle batteries and a dialogue on "subsidy incentive
transparency."
"This is a deal that is really focused on critical minerals for
electric vehicle batteries and battery supply chains. We would
expect that this is a negotiation that is limited in scope and
relevant to the critical minerals that speak to those needs,"
one official said.
Biden's Inflation Reduction Act (IRA), a $430 billion bill that
offers massive subsidies for U.S.-made products and is aimed at
addressing the climate crisis and promoting renewable energy,
has prompted European anger.
The official said the dialogue on subsidies would be aimed at
making sure the United States and Europe are not working at
cross purposes.
During a December visit by France's President Emmanuel Macron to
the White House, Biden said that bills aimed at boosting U.S.
renewable energy and the semiconductor industry have "glitches"
that can be addressed.
The European Commission last month presented its Green Deal
Industrial Plan in response to the U.S. measure, with increased
levels of state aid to help Europe compete as a manufacturing
hub for clean tech products.
The two leaders will also discuss ways to strengthen cooperation
on imposing sanctions on "third party actors" who are violating
sanctions on Russia over the Ukraine war, the officials said.
(Reporting By Steve Holland; Editing by Cynthia Osterman)
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