The letter to the leaders of the US Congress says they are concerned about funding plans for the introduction of electric cars that exclude foreign manufacturers. The regulation means a “massive disadvantage for the European auto industry in the US market, which is important to us,” said Economics Minister Margarete Schrambck (VP).
The entry into force of the planned US legislation would have “unforeseeable negative effects on Austrian exporters and investors in the affected industries,” said the minister in a statement sent to the APA on Sunday. Schrambck also wanted to address this on Wednesday in a telephone conversation with the trade representative of the United States, Katherine Tai, and to draw attention to the massive concerns of Austria. The signatories of the letter include Austria, Germany, France, Italy, Slovakia, Croatia, the Czech Republic, Malta and Cyprus from the EU as well as Japan, Mexico, South Korea and Canada.
The background to this are plans in the US Congress to grant a new tax credit of $ 12,500. This should include $ 4,500 for US electric vehicles manufactured in plants where the UAW auto union is active. Also included is $ 500 for US-made batteries. According to a House House proposal released earlier this week, US-only vehicles after 2027 would be eligible for the $ 12,500 tax credit. The proposal is supported by US President Joe Biden, the UAW and many Democratic politicians in Congress. UAW President Ray Curry said the scheme will “create and maintain tens of thousands of jobs for UAW members” and will be “a win for those working in the automotive industry.”
The US electric car tax credit would cost $ 15.6 billion over ten years and disproportionately encourage the three major Detroit automakers – General Motors, Ford, and Chrysler parent company Stellantis – to union their US-made vehicles assemble organized works. Both foreign auto companies and the governments mentioned – all of them close partners of the US government – see it very differently.
“This legislation, if implemented, would violate international trade rules, penalize hardworking Americans employed by these automakers, and undermine these automakers’ efforts to expand the US electric vehicle market to meet government climate goals “says the letter of October 29th. The ambassadors point out that auto companies from their countries have already invested 98 billion dollars in the USA and created 2.1 million jobs.
“In particular, the limitation of the entitlement to the credit to vehicles that were manufactured in the USA and have a local share contradicts the obligations that the USA has entered into under multilateral WTO agreements,” warned the ambassadors US Congress. “It disadvantages US trading partners and undermines the spirit of trade laws that are designed to ensure the free and fair movement of goods.” For Austria, the ambassador to Washington, Martin Weiss, signed the letter.
