A fruitless end to U.S.-European negotiations on protectionist policies

Negotiations between the European Union and the U.S. on economic protectionism in Washington have collapsed.

According to AFP TV channel, during these negotiations the issue of providing huge subsidies to U.S. companies to fight inflation was discussed. The granting of $430 billion in subsidies to U.S. companies has run into strong opposition from the European Union authorities.

They believe that subsidizing U.S. companies will cause European companies to suffer losses and lose their competitiveness. Some EU officials have also said that the EU should sue the United States in the World Trade Organization for providing these subsidies to U.S. companies. The head of the European Parliament’s trade committee said that the EU should sue the U.S. at the World Trade Organization over the deflation law.

According to AAA, Brand Lange announced that European and U.S. officials are going to address the disagreement in the coming days, but it does not look like the talks will lead to anything more than small changes. He said: I don’t think there will be many fundamental changes because this law has been passed. Lange stressed that complaining about the U.S. to the World Trade Organization sends a message to Washington that its decision does not comply with the rules of that organization.

America and Europe have tried to resolve their differences over the inflation law with a conciliatory approach, but so far this has not yielded any results. The White House calls the law a groundbreaking attempt to revive American manufacturing and promote renewable technologies, but European Union governments believe that the U.S. has started a trade war with Europe by subsidizing its economy.

This $430 billion bill gives U.S. companies a host of tax breaks. Europeans fear that this law will lead to the loss of their companies, especially in the automotive sector, and direct investment to America.

French President Emmanuel Macron, during his visit to America last week, stressed that the French middle class needs jobs and said: “We don’t want to become a market for American goods because we have exactly the same products as you do, and the consequence is the law of deflation, which is that you can solve your problem, but you will make our problem worse.