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December 5, 2022

Can the WTO make trade and climate action mutually compatible?

A meeting between American and European negotiators to discuss concerns about the US Inflation Reduction Act is the latest sign of stress between measures to boost domestic green economies and international trade rules.

EU and US officials are expected to meet today to discuss the US Inflation Reduction Act, amid European concerns that the green subsidy package could undercut efforts by EU manufacturers to boost the production of electric vehicles and other clean energy technologies. If negotiations fail, the EU could decide to launch a case against the US through the World Trade Organization.

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