“Today, the production and processing of some of the critical commodities for the green revolution are controlled by a single country, China. Europe and the United States can build an alternative to this monopoly by establishing a critical commodities club. The idea behind it is simple: cooperation with partners and allies for procurement, production and processing gives us the possibility to overcome the monopoly."
Ursula von der Leyen said it in Bruges.
There is a risk, said Ursula von der Leyen, that the US Inflation Reduction Act (IRA) "will lead to unfair competition, could close markets and fragment the same critical value chains already tested by Covid. We must take a close look at these issues and, at the same time, learn what we can do better.As we do so, we must consider three particularly challenging aspects: first, the 'Buy American' rationale underpinning part of the IRA; second, the taxes which could lead to discrimination; and third, production subsidies which could lead to a race for subsidies".
"The US Inflation Reduction Act (IRA) should make us reflect on how to improve our state aid regulatory frameworks and adapt them to a new global environment," said EU Commission President Ursula von der Leyen.
