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Trade war over green subsidies looms large over EU-US tech summit

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Trade war over green subsidies looms large over EU-US tech summit

The shadow of an imminent commerce conflict over inexperienced subsidies is looming massive at a high-level EU-US summit happening on Monday.

Two vice presidents of the European Fee – Margrethe Vestager and Valdis Dombrovskis – are assembly on the College of Maryland with their US counterparts to debate and deepen cooperation on financial issues of widespread curiosity.

The format, often known as Commerce and Expertise Council (TTC), was launched final yr to reset transatlantic relations after the fraught Trump years, which noticed either side slapping industrial tariffs on one another.

Though not a primary merchandise on the official agenda, one contentious subject threatens to overshadow the entire event: the Inflation Discount Act (IRA), a landmark piece of laws spearheaded by the administration of US President Joe Biden that comprises $369 billion price of investments to struggle local weather change and pace up the deployment of inexperienced power.

Why have EU officers criticised the act?

Amongst its provisions, the IRA options tax credit for electrical automobiles – as much as $7,500 for brand new purchases – that may solely apply if the product is assembled within the US and the vast majority of parts are sourced domestically or from a free commerce associate.

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In contrast to Canada and Mexico, the EU would not have a free commerce cope with the US, which implies EU-made automobiles can be robotically excluded from the beneficiant subsidies.

Photo voltaic panels, batteries, warmth pumps, biomass stoves, sustainable fuels and clear hydrogen will even be eligible for some type of tax credit score beneath the IRA.

This has led a rising choir of EU leaders to blast the laws as a blatant protectionist software to advertise American automobiles to the detriment of the European trade.

“There’s a placing symmetry between the Inflation Discount Act and the European Inexperienced Deal. Each of them are concurrently a local weather technique, and a method for funding and progress,” European Fee President Ursula von der Leyen stated on Sunday.

“But, the Inflation Discount Act can be elevating considerations right here in Europe, towards a really explicit backdrop for our trade and economic system.”

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With the act scheduled to take full impact in January, the EU is scrambling to barter an answer with Washington with a view to keep away from a full-blown commerce conflict throughout the Atlantic.

For Brussels, the perfect breakthrough could be for the Biden Administration so as to add an exemption granting the EU and its producers the identical rights as these from Canada and Mexico.

“There are tweaks that we are able to make that may essentially make it simpler for European nations to take part and/or be on their very own,” Biden stated final week whereas internet hosting President Emmanuel Macron of France. “I by no means meant to exclude of us who had been cooperating with us.”

However the laws was already accredited by the US Congress with a hard-fought, razor-thin Democratic margin, making it tougher to introduce additional amendments.

The EU might additionally file a authorized criticism earlier than the World Commerce Group (WTO), though this selection would entail a protracted strategy of unsure decision.

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Subsidy race

A extra aggressive answer, advocated by France, would see the EU counterattack with its personal programme of inexperienced subsidies to learn European corporations.

Beneath EU legislation, industrial subsidies are intently examined by the European Fee, which has the facility to reject them if they will injury the financial stability throughout the inner market. This precludes the largest member states from stifling smaller rivals with huge state support schemes.

The strict precept dates again to the origins of European integration however has in recent times come beneath scrutiny as the worldwide race between the US and China heats up.

“The Inflation Discount Act ought to make us mirror on how we are able to enhance our state support frameworks, and adapt them to a brand new world atmosphere,” stated von der Leyen.

“We’re very cautious to keep away from distortions in our single market. However we should even be conscious of the rising world competitors on clear tech.”

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Von der Leyen then added that a “widespread European industrial coverage requires widespread European funding,” referring to the COVID-19 restoration fund and REPowerEU, two initiatives which might be being bankrolled by way of the issuance of widespread EU debt.

However the concept of issuing recent EU debt or spending billions on industrial subsidies is divisive amongst member states, with no clear consensus in sight.

The bloc has lengthy maintained a “cautious method” to subsidies, whereas the US has chosen to make use of them for “geopolitical goals,” stated Niclas Poitiers, a analysis fellow at Bruegel, a Brussels-based financial suppose tank.

The Inflation Discount Act locations restrictions on minerals coming from “international entities of concern,” a thinly-veiled reference to China.

“It is a political query as a result of loads of it’s about avoiding a subsidy race the place principally the EU and US (are) competing over subsidies and the winners are particular person corporations in the proper sectors that may then ask for giant handouts from the general public purse,” Poitiers instructed Euronews.

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“And that is one thing, after all, that’s in nobody’s curiosity. On the identical time, it isn’t within the EU’s curiosity to be discriminated towards by the USA.”

Addressing this kind of commerce friction was the prime goal of the Commerce and Expertise Council, however no main breakthrough across the IRA is anticipated to emerge from the Maryland assembly. 

Requirements for trust-worthy synthetic intelligence (AI), provide chains for semiconductors, quantum expertise, digital infrastructure and connectivity can be as an alternative the principle topics on the gathering.

Actually, EU officers are reluctant to make the Biden-led laws a giant subject of dialogue within the council, fearing it might imperil settlement in different fields.

“We’d like cooperation, not confrontation,” Margrethe Vestager tweeted forward of the assembly.

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In a bid to separate the codecs, the EU and the US launched in October a joint job power on the Inflation Discount Act to deal with “particular considerations” raised by the bloc.

The duty power has held “common” conferences since then, stated a European Fee spokesperson, with out offering any extra particulars on the progress made – or lack thereof.

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Dwight Howard’s ‘Free Palestine’ Tweet Delete Claim False, NBA Says

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Dwight Howard’s ‘Free Palestine’ Tweet Delete Claim False, NBA Says

Dwight Howard isn’t telling the truth, at least according to the NBA.

The eight-time NBA All Star recently said he was told to delete a 2014 tweet supporting Palestine during a call with league commissioner Adam Silver. That claim is “categorically false” and Silver did not contact the former Orlando Magic star, NBA spokesman Mike Bass said in an email on Wednesday. Howard, who was a member of Houston Rockets at the time, said the tweet jeopardized his playing career.

“I tweeted Free Palestine,” Howard said during a recent podcast appearance on The Gauds Show podcast. “Less than 10 minutes (later), I get a call from the commissioner of the NBA, agents, people working with my foundation at the time … [telling me] ‘you have to erase this tweet, you have to take it down’.”

Howard and his media rep didn’t immediately respond for comment when contacted on Wednesday.

The former NBA champion, who last played in the NBA during the 2021-2022 season with the Los Angeles Lakers, took his career overseas in 2022 and most recently played for the Taiwan Mustangs, teaming up with ex-NBA star DeMarcus Cousins and former Lakers teammate Quinn Cook. His deal with the Mustangs also reportedly made him part owner of The Asian Tournament (TNT) team. The 39-year-old, who won the Defensive Player of the Year award three times and has Hall of Fame worthy career numbers, has previously said that he still wants to return to the NBA despite his age.

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“It’s because I went against the grain and said something that people didn’t like,” Howard told Gauds host Ray Daniels. “When you’re in the league, you’re in a place where if (you) say too much, (you) may not get a job anymore. I got to hold my tongue which is so hard to do.”

@DwightHoward/X

Howard’s claim that the NBA tried to suppress his attempt to raise awareness around the plight of Palestinians has drawn wide attention on social media and online with multiple Middle East publications reporting on his statement. Several pro-Palestine activists have chimed in on Howard’s claim while denouncing the league, which separately has been criticized for its complex business relationship with China.

Howard, who was aiming to support the Palestinian community he met in Houston, says the tweet situation which came during the 2014 Gaza war highlights the pressure players regularly face to remain silent on controversial topics. His recent claim involving the NBA a decade later comes amid the ongoing conflict between Israel and the Hamas-led Palestinian military groups, which has resulted in the death of more than 45,000 Palestinians since the attack on October 7 in southern Israel, according to Reuters.

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Howard, who reignited his beef with Hall of Famer turned sports analyst Shaquille O’Neal over what he views as O’Neal’s lack of respect for him during the same podcast appearance, separately has made off-the-court headlines over the last year. Businessman Calvin Darden Jr. was convicted in October of scamming Howard out of millions of dollars in a false scheme with help of his former agent Charles Briscoe, who pleaded guilty to his role in perpetuating the fraud back in 2023.

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UK lawmakers vote against inquiry into 'rape gang scandal' as Musk keeps up pressure

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UK lawmakers vote against inquiry into 'rape gang scandal' as Musk keeps up pressure

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British lawmakers voted against launching a national inquiry into the U.K. grooming gang scandal on Wednesday, after objections to the way the vote was being put forward – and amid international scrutiny of the crisis spearheaded by Elon Musk.

The House of Commons voted on an amendment to hold a statutory inquiry into the scandal – where it was revealed that men of predominantly Pakistani heritage had sexually abused girls for years in towns in northern England.

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The measure was an amendment to a children’s well-being and schools bill backed by the Labour government. U.K. Prime Minister Keir Starmer warned that a vote in favor of the amendment would kill the overall bill to which it was attached. The amendment was voted down by 364 votes to 111 in the Labour-controlled chamber, Sky News reported.

UK PM STARMER HITS BACK AGAINST MUSK ATTACKS ON CHILD GROOMING GANGS

“What we need now is action. What can’t be tolerated is the idea that this afternoon members opposite will vote down a bill which protects children,” Starmer said ahead of the vote, calling it a “wrecking amendment.”

Britain’s Prime Minister Keir Starmer addresses members at the Labour Party Conference in Liverpool, England, on Tuesday. (AP)

Conservative Party Leader Kemi Badenoch pushed back.

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“Be a leader, not a lawyer,” she told him, as she said that a new inquiry should investigate the connected issues between the towns. 

“The reason why a national inquiry is important is because this issue is systemic,” she said, involving “local and national officials, the police, prosecutors and politicians.”

“These interlinked issues cannot be covered by local inquiries alone,” she said.

Previous reports had found evidence of “appalling” abuse, with more than 1,400 girls abused between 1997 and 2013 in Rotherham alone. Reports also found that authorities had been scared of fueling racism in their handling of the crimes given the ethnic makeup of the perpetrators. The scandal tapped into brewing concerns about multiculturalism and mass immigration.

The issue came back to the spotlight recently after local officials in Oldham called on the government to launch a national inquiry into the town’s handling of the crisis. A 2022 report had found that children had been failed by officials, but had found no cover-up despite concerns that it would be capitalized on by right-wing activists.

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ELON MUSK DEMANDS UK ACT ON GROOMING GANG SCANDAL AMID GROWING CALLS FOR PROBE

The U.K. government rejected the request, saying that any inquiry should be organized locally. That, in turn, drew calls from Badenoch and Elon Musk for a national inquiry.

Parliament in London

The Palace of Westminster, the Houses of Parliament, in the heart of London.

“Across the country, thousands of girls were tortured and sexually abused at the hands of men who treated them as things to be used and disposed of, destroying many lives forever. The prime minister has mentioned previous inquiries. He is right, there has been an inquiry into child sexual abuse. But it wasn’t about the rape gang scandal,” Badenoch said.

Musk, who has been hammering away at the issue on X – even calling for the prosecution of top U.K. government officials, including Starmer – appealed again to the British public before the vote.

Elon Musk and Donald Trump

President-elect Trump and Elon Musk attend a SpaceX Starship launch on Nov. 19, 2024, in Brownsville, Texas. (Brandon Bell/Getty Images)

“Please call your member of parliament and tell them that the hundreds of thousands of little girls in Britain who were, and are still are, being systematically, horrifically gang-raped deserve some justice in this world,” Musk said on X on Wednesday.

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“This is vitally important, or it will just keep happening,” he said.

BRITAIN HIT BY ANOTHER ASIAN GROOMING GANG SCANDAL AS REPORT EXPOSES CHILD SEX ABUSE IN MANCHESTER

Starmer had previously slammed “lies and misinformation” without naming Musk directly, and had accused U.K. politicians of jumping on a “bandwagon of the far-right.”

On Wednesday, he again accused Badenoch of jumping on a bandwagon and urged lawmakers to make sure the broader bill passed.

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“One of the provisions in the bill is to protect children vulnerable today who are out of school to prevent abuses ever taking those children out of school. I implore members opposite to defy the misleading leadership of the Leader of the Opposition and vote for a really important bill.”

The Associated Press contributed to this report.

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Russian strike kills 13 in Ukraine’s Zaporizhzhia

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Russian strike kills 13 in Ukraine’s Zaporizhzhia

A Russian guided bomb attack on the southern Ukrainian city of Zaporizhzhia has killed at least 13 civilians and injured about 30 others, officials said.

Graphic footage posted on Ukrainian President Volodymyr Zelenskyy’s Telegram page on Wednesday showed bloodied civilians lying in a city street being treated by emergency services.

“There is nothing more brutal than aerial bombing of a city, knowing that ordinary civilians will suffer,” Zelenskyy wrote on X.

High-rise residential blocks, an industrial facility and other infrastructure were damaged in the attack, Ukraine’s Prosecutor General’s Office said on Telegram on Wednesday. The debris hit a tram and a bus with passengers inside, it added.

Regional Governor Ivan Fedorov said Russian forces launched guided bombs at a residential area in the city in the middle of the afternoon, and at least two residential buildings were struck in the attack.

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Moscow has frequently launched aerial attacks on civilian infrastructure during its almost three-year war on Ukraine. It has consistently denied targeting civilians.

Al Jazeera’s Jonah Hull, reporting from Kharkiv in Ukraine, said that “strikes were aimed at what has been described as an ‘industrial site’.”

Hull described “scenes of devastation outside a factory, in a multi-storey apartment building opposite … in addition to a passing tram and minibus, which would have been carrying passengers.”

Marina Miron, a military analyst at King’s College London, told Al Jazeera that “the plant had already been targeted in November, as the Russians say Ukrainians were using it to assemble drones”.

“Owing to the deaths of civilians, however, there is a possibility that Russian navigation systems were jammed,” said Miron.

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The attack comes as both Russia and Ukraine seek to project strength before US President-elect Donald Trump’s inauguration on January 20.

Earlier in the day, the Ukrainian military said it had struck a fuel storage depot inside Russia, causing a huge blaze at a facility that supplies missiles to a Russian air base.

Ukraine’s General Staff said that the assault hit the storage facility near Engels, in Russia’s Saratov region, about 600km (373 miles) east of the Ukrainian border.

As Ukraine faces certain restrictions in using Western-supplied missiles, Kyiv has been developing its own long-range arsenal capable of reaching targets behind its front line.

The attacks have disrupted Russian logistics in the war, which began on February 24, 2022.

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‘Serious security guarantees’

Earlier on Wednesday, Zelenskyy said that countries wanting to end the war should offer Ukraine assurances about its future defence.

“To be honest, I believe that we have a right to demand serious security guarantees from countries that aim for the peace in the world,” Zelenskyy said.

Ukraine’s leader was speaking at a news conference in Kyiv, responding to comments from US President-elect Donald Trump that he understood Russia’s opposition to neighbouring Ukraine joining NATO.

Speaking to reporters from his Mar-a-Lago estate in a wide-ranging media conference late on Tuesday, Trump said “Russia has somebody right on their doorstep, and I could understand their feelings about that.”

The United States, Germany, Hungary and Slovakia have stood in the way of Ukraine immediately joining the 32-nation NATO alliance, Zelenskyy noted.

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