The European Union and the United States are dangerously close to a major transatlantic trade dispute at a time when the two western giants want to show unity in the face of challenges from Russia and China.
EU trade ministers insisted on Friday that they would be forced to respond if Washington stuck to all the terms of its Cut Inflation Act, which favors local businesses through subsidies and, according to the EU, will unfairly discriminate against companies that want to compete. for contracts
“Nobody wants to get into a tit-for-tat or subsidy race. But what the US has done is really not consistent with the principles of free trade and fair competition,” Irish Trade Minister Leo Varadkar said.
Although the allies have stood shoulder to shoulder in imposing tough sanctions against Russia since the invasion of Ukraine on February 24, they cannot ignore trade differences.
“What we are asking for is fairness. We want and hope that European companies and exports receive the same treatment in the United States that American companies and exports receive in Europe,” said Vice-President of the EU Commission, Valdis Dombrovskis.
And beyond the European Commission, which negotiates on behalf of the 27 member countries on trade issues, concerns are also widely shared in the EU’s national capitals.