US Plan For Electric Vehicles Tax Breaks May Breach WTO Rules: European Union, South Korea
NDTV
The ban on tax credits for vehicles assembled outside of North America would take effect as soon as President Joe Biden signs the legislation.
The European Union and South Korea have raised concerns about proposed U.S. tax credits for purchases of electric vehicles, saying they may discriminate against foreign-made vehicles and breach World Trade Organization (WTO) rules.
Under the $430 billion climate and energy bill passed by the U.S. Senate on Sunday, Congress would lift the cap on the existing $7,500 tax credit for electric vehicle purchasers but impose restrictions, including barring vehicles not assembled in North America from receiving the credit.
The ban on tax credits for vehicles assembled outside of North America would take effect as soon as President Joe Biden signs the legislation.
The proposed legislation also includes provisions aimed at preventing use of battery components or critical minerals derived from China.
