Brussels: Europe and the Arabs
New directives from the US confirm that EU companies can benefit from the Commercial Clean Vehicle Credit Scheme under the US Inflation Reduction Act. According to a statement by the European Commission in Brussels, which said, "The European Union welcomes this directive, which reflects its constructive engagement as part of the EU-US Inflation Act Task Force at senior official level.
Under the US directives, commercial clean vehicle credits will be available to EU companies without the need to make changes to the existing or anticipated business models of EU producers. This is a win-win, as it strengthens cooperation between the EU and the US in our common goal of combating climate change and strengthening transatlantic supply chains: US taxpayers will be able to benefit from highly efficient electric vehicles and components made in the EU, while EU companies can Which provides its customers through leases with clean, high-end vehicles taking advantage of incentives under an IRA.

The EU continues to seek similar, non-discriminatory treatment for EU clean car producers under the Inflation Control Act Clean Car Credits. This scheme remains a concern for the EU, as it contains discriminatory provisions that de facto exclude EU companies from benefiting. Discriminating against clean EU-produced vehicles and inputs violates international trade law and unfairly harms EU companies in the US market, reducing choices for American consumers and ultimately reducing the climate effectiveness of this green subsidy.

The effort is ongoing in the EU-US Inflation Act working group to find solutions to European concerns, for example by treating the EU the same way it treats all US FTA partners. We welcome the US's announcement today that it will take more time to work on the outstanding guidelines, allowing it to address these issues satisfactorily.

EU companies will be able to benefit immediately from the new guidelines. Meanwhile, discussions on outstanding issues will continue in the task force.
The American Inflation Reduction Act (signed into law August 16, 2022) provides generous fiscal incentives to support the green transition. In the case of clean cars, the two main incentives are tax credit programs: one for commercial operators and one for private consumers. The consumer tax credit contains several provisions, including domestic content or production or assembly requirements, that discriminate against EU car producers and therefore risk weakening competition and raising prices.
  The EU strongly objected to this, after which the EU-US launched the EU-US Working Group on the Inflation Act on October 25, 2022. Both sides are working hard to address the EU's concerns about the Inflation Act in both this forum and bilateral engagements other constructive