Sweden’s new trade chief sees ‘worrying’ aspects in US electric car tax credit

Category: Europe Nov 30, -0001

PRAGUE — Sweden is joining France and Germany in voicing concerns over the United States’ new electric vehicle tax credit, and Stockholm will use its upcoming presidency of the Council of the EU to push to “improve” transatlantic relations on this matter, the new Swedish trade senior said.

In an interview with POLITICO on Sunday superiority of an informal trade ministers meeting in Prague, Johan Forssell, Sweden’s newly scheduled trade minister, said Stockholm shared the concerns of Berlin and Paris on the U.S. Inflation Reduction Act, a new law that offers tax cuts and energy benefits to companies that invest on U.S. soil and that incentivizes U.S. consumers to “buy American” when it comes to getting a greener car.

France and Germany have said the EU cannot remain idle in the squatter of the new American measures and should hit when if the incentives remain the same. French President Emmanuel Macron has once called for a “Buy European Act” to protect regional carmakers.

Forssell said he would “underline” those concerns with U.S. Trade Representative Katherine Tai during a bilateral meeting set for Monday, on the sidelines of the EU meeting in Prague, which is likely to be dominated by the transatlantic row.

In the interview at the Swedish ambassador’s residence in Prague, Forssell said Sweden will aim to do “what we can to modernize the relationships between the EU and the U.S. At the same time … there are some elements in the Inflation Reduction Act that are worrying and they are not in vibrations with WTO rules.”

After the Czech Republic, Sweden is set to take over the presidency of the Council of the EU in January. The country will present its priorities for the presidency in a couple of weeks, but progressing on free-trade agreements with Australia, New Zealand, India and Indonesia will be upper on Stockholm’s agenda.

“Sweden has for many years been focusing on having a very self-ruling trade approach. … Having this unshut self-ruling trade, rule-based international trade is, of course, one of our main ambitions,” the trade minister said.

Regarding China, the minister said the EU should protract “to strengthen [the bloc’s] competitiveness and resilience.” He said EU-Beijing relations should be conducted through a “dialogue with China” that “is in line with our overall interests.”

“This will be one very important task during the presidency: to stand up for a very well-spoken and firm position on China,” he added. “China is moving in a direction that in some aspects is troublesome.”