International Opposes U.S. Electric Vehicle Tax Credit Reuters-zimo News


© Reuters. File photo: On December 14, 2016, an electric vehicle (EV) fast charging station can be seen in the parking lot of the Whole Foods Market in Austin, Texas, USA. REUTERS / Mohammad Khursheed / File Photo / File Photo

David Shepson

Washington (Reuters)-According to Reuters, the European Union, Germany, Canada, Japan, Mexico, France, South Korea, Italy and other countries have sent letters to U.S. legislators saying that U.S. taxation of electric vehicles violates international trade rules. Joint letter issued on Saturday.

On Friday night, 25 ambassadors in Washington wrote to U.S. lawmakers and the Biden administration, saying, “Limiting the eligibility of vehicles for credit based on the U.S. Congress and local content is inconsistent with the commitments made by Americans within a multilateral framework. The WTO agreement “.

The US Congress is considering a new tax credit of US$12,500, including US$4,500 for union-made American electric cars and US$500 for US-made batteries. According to a House proposal released this week, only cars manufactured in the United States are eligible for a $12,500 credit after 2027.

Canada and Mexico issued separate statements against the plan last week. The US State Department declined to comment on Saturday, and the White House did not immediately respond to a request for comment.

The proposal was supported by President Joe Biden, the American Automobile Workers’ Union (UAW) and many congressional Democrats, but was opposed by major international automakers, including international automakers. Toyota Automotive (NYSE ? Corp, Volkswagen (OTC:), Daimler AG (DE:), Honda Motor Company, Hyundai Motor Company and BMW Company.

More than a dozen foreign automakers wrote to two California senators on Friday, urging them to abandon their plans to discriminate against the state.

UAW President Ray Curry stated that the clause “will create and retain tens of thousands of jobs for UAW members” and “will be a victory for auto manufacturing workers.”

The electric vehicle tax credit will cost $15.6 billion in 10 years and will enable Detroit’s three major automakers-General Motors (New York Stock Exchange:), Ford Motor (NYSE: New York Stock Exchange) and the parent company Chrysler, Stellatis NV ——Assemble their cars in American factories) benefit disproportionately.

Ambassadors including Poland, Sweden, Spain, Austria, the Netherlands, Belgium, Cyprus, Ireland, Malta, Finland, Romania and Greece said that the legislation will hurt international car manufacturers.

They stated that this “would violate international trade rules, put American workers employed by these automakers at a disadvantage, and undermine these automakers’ efforts to expand the U.S. electric vehicle market to achieve the government’s climate goals (Biden).”

The letter added that it “puts U.S. trading partners at a disadvantage.”

Almost all auto workers of foreign automakers in the countries where they wrote letters have joined trade unions, but not in the United States.

“Our government supports workers’ right to organize. They wrote that this is a basic right and should not be used as part of tax incentives, which would make nearly half of American auto workers lose opportunities.”

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