Amid trade wars US and EU seek minerals deal, talks on subsidies – Times of India

WASHINGTON: Amid trade frictions, President Joe Biden and President of the European Commission Ursula von der Leyen held talks on Friday that could lead to negotiations over critical minerals used for electric vehicles and government subsidies, US officials said.
Biden and von der Leyen will meet at the White House at 2pm EST (1900 GMT) amid European complaints that subsidies, including in the US Inflation Reduction Act, will divert investment 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 begin negotiations on an essential minerals deal for electric vehicle batteries and a dialogue on “transparency with subsidy incentives.” “This is a deal that really focuses on critical minerals for electric vehicle batteries and battery supply chains. We would expect this to be a narrow scope negotiation and relevant to the critical minerals that serve those needs,” said a official. .
Biden’s Inflation Reduction Act (IRA), a $430 billion bill that provides massive subsidies for US-made products and aims to address the climate crisis and promote renewable energy, has sparked European anger.
The official said the dialogue on subsidies would be aimed at ensuring that the United States and Europe do not work against each other.
During a December visit by the French president Emmanuel Macron to the White House, Biden said bills aimed at boosting renewable energy in the US and the semiconductor industry have “breakdowns” that can be addressed.
The European Commission presented its Green Deal Industrial Plan last month in response to the US measure, with increased state aid to help Europe compete as a manufacturing hub for cleantech products.
The two leaders will also discuss ways to strengthen cooperation in imposing sanctions on “external actors” who violate sanctions against Russia over the war in Ukraine, the officials said.

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