The US Inflation Reduction Act, signed into law in 2022, was billed as a qualitative step towards a green transition. The reality, as HANNAH SELL explains, has been completely different.
This year is the thirtieth birthday of the World Trade Organisation (WTO). It is also the year China opened a WTO case against the US, on the grounds that the ‘green manufacturing’ subsidies of President Joe Biden’s Inflation Reduction Act (IRA) break global trade rules. No-one expects the case to be resolved, not least because for the last five years the US has obstructed any new appointments to the WTO judges panel, effectively blocking the body’s ability to settle disputes.
The increasingly moribund WTO is just one symptom of the end of the era of ‘globalisation’ and the increasing trend for the US – still the strongest power on the planet but in relative decline – to move from its ‘free trade’ mantra to putting up barriers in order to defend its position against its rivals, above all China. This is the primary purpose of the IRA.
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