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America’s Inward Turn on Trade

America’s efforts to use renewables subsidies to protect domestic manufacturing interests will not only bring higher costs. Because they flout World Trade Organization rules, they could also have significant political repercussions.

ROME – Given that the Inflation Reduction Act promises the largest investment in the fight against climate change ever made by the United States, one might expect the European Union to welcome it. But, while EU leaders undoubtedly applaud America’s strengthening commitment to the green transition, they do have important – and legitimate – misgivings about the IRA.

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