Amid trade dispute, US and EU to seek minerals agreement, talks on subsidies

WASHINGTON (Reuters) – Amid trade frictions, President Joe Biden and European Commission President Ursula von der Leyen hold talks on Friday that may lead to negotiations on critical minerals used for electric vehicles and government subsidies, U.S. officials said.

Biden and von der Leyen meet at White House at 2 p.m. EST (1900 GMT). The backdrop is European protests that subsidies, including the U.S. Inflation Reduction Act will divert investments away from Europe and harm their economies.

Reporters were briefed by senior officials from the Biden administration who expressed hope that the leaders will agree to start negotiations on an agreement on critical minerals for electric vehicle batteries. “subsidy incentive transparency.”

“This is a deal that is really focused on critical minerals for electric vehicle batteries and battery supply chains. We would expect that this is a negotiation that is limited in scope and relevant to the critical minerals that speak to those needs,” One official stated.

Biden’s Inflation Reduction Act, (IRA), a $430 Billion bill that provides massive subsidies to U.S.-made goods and is aimed at addressing climate change and promoting renewable energies has triggered European anger

According to the official, the dialogue on subsidy would aim at ensuring that the United States and Europe do not work in contradiction.

During a December visit to the White House by President Emmanuel Macron of France, Biden stated that the bills aimed at boosting U.S. solar energy and the semiconductor sector have been defeated. “glitches” These issues can be solved.

Last month, the European Commission presented its Green Deal Industrial Plan as a response to the U.S. move. It included increased state aid to Europe to make it a competitive manufacturing hub for clean technology products.

They will also discuss ways to improve cooperation in imposing sanctions. “third party actors” Officials stated that they have received complaints from those who violate sanctions against Russia in relation to the Ukraine war.

(Reporting by Steve Holland; Editing: Cynthia Osterman