The United Kingdom has joined a global reaction against US President Joe Biden’s multibillion-dollar green subsidy scheme.
It has been discovered that International Trade Secretary Kemi Badenoch wrote to her US counterpart Katherine Tai to complain about the structure of the US Inflation Reduction Act (IRA).
As part of the massive economic package put into law in August, Mr. Biden has committed $369 billion over the next decade to energy security and climate change programs.
This consists of tax incentives, grants, and loan guarantees, but the legislation has angered other nations.
EU and South Korea have also asserted that the IRA package could violate WTO regulations and unjustly damage their industries in competition with US rivals.
Ms. Badenoch has added the United Kingdom to the list of nations concerned about the global implications of Mr. Biden’s activities.
International Trade Secretary Kemi Badenoch has reportedly protested about the structure of the Inflation Reduction Act of Washington (IRA)
In August, US President Joe Biden signed into law a $369 billion package of green subsidies, but has since been met with international opposition.
Ms Badenoch stated in a letter to Ms Tai, which was seen by the Financial Times, that the US plan would “hurt many economies around the globe and damage global supply chains for batteries, electric vehicles, and other renewables.”
Much of the worldwide worry regarding the impact of the IRA has centered on a provision limiting a $7,500 tax credit for the purchase of electric vehicles to those built in North America.
This was intended in part to wean the United States off of Chinese-made batteries, but has caused alarm among nations without a free trade agreement with the United States, such as the European Union and the United Kingdom.
The EU has already demanded modifications to the package to replicate the exemptions already granted to Canada and Mexico, and Brussels officials are currently in discussions with their American counterparts.
And Ms. Badenoch made it plain that the United Kingdom should also receive a special deal.
“As the closest of US allies, the United Kingdom expects to be a part of any flexibility in IRA implementation,” she continued.
As President Biden has made clear, the United States is listening to the concerns of our allies and partners over the IRA, and we are committed to working together to find a positive path ahead
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