Member Of European Parliament Urges EU To Lodge WTO Complaint Against US

BERLIN (UrduPoint News / Sputnik - 04th December, 2022) The European Union should file a complaint with the World Trade Organization (WTO) against the United States over the controversial Inflation Reduction Act (IRA), Bernd Lange, member of the Social Democratic Party of Germany (SPD) and chair of the European Parliament's Committee on International Trade, said on Sunday.

"The EU must swiftly file a complaint against the US with the WTO in the coming months," Lange told news outlets of Germany's Funke Mediengruppe media group.

The move would send a clear signal that Washington's actions are in breach of WTO rules, the lawmaker said.

Lange believes that some minor adjustments to the IRA may still be negotiated, although "not much will substantially change, as the law has been passed." The EU, for its part, should step up support for domestic industries, he said.

"We also need to look at whether and how we can lower energy prices for industries, at the moment they are up to ten times higher than in the US," Lange noted.

Another EU lawmaker, member of the Committee on Economic and Monetary Affairs Markus Ferber also advocated a hardline position against Washington inans interview with the same media.

Ferber argued that the European Commission should consider activating its trade defense instruments if the US does not budge. He also shared his frustration over the protectionist course of current US administration.

"The US Inflation Reduction Act threatens to make a difficult economic situation in Europe much worse," Ferber said.

The IRA, signed into law by US President Joe Biden in August, commits $300 billion toward deficit reduction, in addition to providing approximately $370 billion in funding for energy security, including tax credits for US-made electric vehicles and subsidies to US consumers, and $80 billion to increase Internal Revenue Service tax enforcement and operations.

Concerns are rising in Europe that the US tax credit plan could kick off a subsidy race between the transatlantic allies at a time when they want to show unity in the face of the Ukraine conflict.