The United States of America has recently brought subsidies for the manufacturing of green energy, and it calls the act an inflation reduction strategy. The strategy adopted by the US is a threat to the ongoing trade relations between the US and the European Union. The European states expect trade diplomacy to safeguard the European green energy manufacturing companies.
German Finance Minister Christian Linder expressed his views on the Inflation reduction act by the US. He said, “The Inflation reduction ACT is a disadvantage for European companies.” He asked president Joe Biden’s government to develop ‘Friendshoring’ principles to go collectively about manufacturing and sourcing raw materials for the production of green energy.
He envisions the dream of a free trade zone between countries sharing liberal democratic ideas, which could benefit the US and the European Union. He also said that the American government could agree to trade diplomacy. Nations like Canada and Mexico enjoy a free trade deal with the US. However, Germany and France want the US to consider free-trade deals with European countries.
President Joe Biden nodded his head for the solicitation of European countries on free-trade deals but couldn’t guarantee as the revision of trade law is impractical for Biden’s government. Linder awaits a legal move by the US government for European countries on a free-trade deal or something that plays a level equal to what Canada and Mexico are doing.
- Published By Team Timeswire