Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


By Andrea Shalal and David Shepardson

WASHINGTON (Reuters) -The United States and European Union are working toward agreement in principle on a deal to make European minerals eligible for tax credits, a senior EU official said Friday.

The $430 billion U.S. Inflation Reduction Act passed in August requires rising percentages of battery minerals to come from the United States or a Free Trade Agreement (FTA) partner.

The EU official said an agreement could come as early as next week, in time for a visit by European Commission President Ursula von der Leyen to Washington, on a deal that would give the EU “free trade agreement-like status.

White House press secretary Karine Jean-Pierre declined to say if a high-level deal that would provide free trade-like status to the EU could be reached before von der Leyen’s visit, removing an irritant in U.S.-EU ties, but underscored Washington’s desire to maintain a strong working relationship with the EU.

“Of course, we want to make sure there’s a good working relationship,” she said.

Up to $3,750 per vehicle of the available tax credits relate to critical minerals for batteries, taking effect when the U.S. Treasury issues guidance, which is expected later this month.

The EU official said it was critical to reach an agreement soon, given moves by some European companies to shift production to the United States.

We need to react now, and we need to at least avoid as much as possible these disturbances, by granting an FTA-like status, and having better access when it comes to raw materials, battery production, for example.

He said the U.S. side was pressing for the agreement to be “legally binding,” but it would be difficult have that in place ahead of von de Leyen’s visit. I think that commitment to do this, and to do it quickly, could well be an outcome of next week’s discussions.

The agreement would be limited, the official said.

We’re not talking about market access here … This would be very reduced and certainly not a free trade agreement in the classical way,” the official said.

The EU, South Korea, Japan and other U.S. allies have harshly criticized the IRA’s provision requiring EVs to be produced in North America to qualify for consumer EV tax credits.

But the EU in December praised a U.S. Treasury Department decision to allow EVs leased by consumers to qualify for up to $7,500 in commercial clean vehicle tax credits.

(Reporting by Andrea Shalal; additional reporting by Trevor Hunnicutt; writing by David Shepardson; Editing by Kirsten Donovan)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts