US trade subsidies approach with Europe unfair, Macron insists
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French President Emmanuel Macron tells lawmakers and business leaders that US industrial subsidies, which are part of Biden's massive green energy initiatives, are "super aggressive" toward European business.
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French President Emmanuel Macron and US President Joe Biden at the G7 Summit in Elmau, Germany, June 26, 2022 (AP)
French President Emmanuel Macron reiterated his displeasure with US subsidies on Thursday, saying they were harming European companies by giving an unfair advantage to their American competitors.
This week, international trade has become a point of contention as Macron becomes the first foreign leader to be hosted by President Joe Biden during an official state visit, injecting new tension into the meeting between two long-standing allies.
In Capitol Hill on Wednesday, Macron told lawmakers and business leaders that US industrial subsidies, which are part of Biden's massive green energy initiatives, are "super aggressive" toward European business.
In an interview for ABC's "Good Morning America" on Thursday, he reiterated the warning, saying that while Washington and Paris were "working closely together" on geopolitics and opposing Russia's military operation in Ukraine, trade tensions remained.
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Macron acknowledged that the CHIPS Act and the Inflation Reduction Act, two massive US laws aimed at increasing US competitiveness and innovation, "are both very good for the US economy."
"But as they were not fully coordinated with the European economies, they create just the absence of a level playing field," the French leader said.
With gas and energy prices "skyrocketing in Europe" since February due to Russia's military operation, Macron said it was vital that western nations coordinate more closely on economic and trade issues.
Two days earlier, French President Emmanuel Macron's visit to the United States marks a turning point for Europe, as it will be the old continent's last chance to convince its biggest ally, the United States, to convince President Joe Biden to pursue a less strict Inflation Reduction Act and steer clear of a trade war, US newspaper Politico reported.
In the European Union's belief, Washington is expected to show greater solidarity with Europe, which itself is suffering under the sanctions imposed on Russia, the report added.
"There’s a risk that imbalances will worsen as the EU pays higher energy prices and the US takes measures to boost investment in industry," an Elysee Palace official told Politico.
Macron would have achieved his goals if the European allies would be able to receive the same rights in subsidy deals under the aforementioned legislation that Europe is currently fearing as US, Canadian, and Mexican companies, the report stressed.
