On Wednesday, the European Commission (EC) President Ursula von der Leyen will meet U.S. President Joe Biden to discuss issues of common interest, including support for Ukraine, the relations with China, and the Inflation Reduction Act (IRA), with which the United States seeks to subsidize its production of environmentally friendly technologies with about US$370 billion.
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The IRA has exacerbated tensions between the U.S. and the EC, which considers that this agreement is discriminatory and contrary to the rules of the World Trade Organization (WTO) as it encourages European companies to move to the U.S. to benefit from the subsidies.
Recently, Brussels had begun negotiations with Washington to sign an agreement that would encourage the exchange of raw materials between European and U.S. companies, as the United States agreed with Mexico and Canada some time ago. Although EC authorities and the U.S. government acknowledged progress in the negotiation, they have not yet reached an agreement.
Amidst this situation, the EC decided to work on its plan to improve the supply of raw materials and increase the production of environmentally friendly technology in Europe.
This plan, which is likely to be approved in mid-March, also seeks to reform the energy market to lower electricity costs and counteract the energy crisis in this region.
Besides voicing the EC discontent with the IRA, Von der Leyen will discuss with Biden the need to increase support for Ukraine in the face of the "growing challenges" steeming from China, a country which the U.S. accuses of seeking to provide arms to Russia.
China denied having expressed such a willingness. However, the EU High Representative for Foreign Policy, Josep Borrell, assured that his organization is monitoring this situation since Beijing would cross a "red line" if it provided arms to Moscow.