EU and South Korea express concern about US EV purchase tax deduction “WTO violation” | Reuters

The European Union has expressed concern that a tax credit for electric vehicle buyers included in the US Senate’s appropriations and revenues bill passed on Monday could violate WTO rules. FILE PHOTO/Yves Herman/File Photo/Reuters/Yves Herman/File Photo

[ブリュッセル 12日 ロイター] – The European Union and South Korea have threatened to violate World Trade Organization (WTO) rules on tax credits for electric vehicle (EV) buyers included in the US Senate’s appropriations and revenues bill passed on Wednesday. expressed concern that there was

The bill would remove the existing $7,500 tax credit cap for electric-vehicle buyers, but impose restrictions, such as excluding vehicles not assembled in North America from taking the credit.

“We believe that the tax credit for EV buyers is discriminatory against non-U.S. manufacturers,” said Ferrer, a spokesman for the European Commission, the EU’s enforcement agency, at a press conference on Wednesday. “The EU calls on the United States to remove these discriminatory elements from the bill and comply with WTO rules,” he said.

South Korea also announced on Wednesday that it had raised concerns with the United States, saying the bill could violate WTO rules and bilateral free trade agreements (FTAs). The Ministry of Trade, Industry and Energy said in a statement that it had asked the U.S. government to relax requirements for final assembly of battery components and automobiles.

The ministry held talks with Hyundai Motor and battery makers LG Energy Solutions, Samsung SDI and SK. The companies asked the South Korean government to help them avoid being at a competitive disadvantage in the U.S. market, the statement said.

The Korea Automobile Manufacturers Association (KAMA) has sent a letter to the U.S. House of Representatives requesting that EVs and battery components manufactured or assembled in South Korea be eligible for tax incentives under the U.S.-Korea FTA. .

Hyundai Motor said the bill would severely limit EV use and options in the United States, and could significantly delay the transition to sustainable transportation.