Letter on IRA defense from Trade Challenges

Organizational Letter on IRA defense from Trade Challenges

Dear President Biden:

The undersigned organizations worked hard alongside your administration and Congress to deliver the Inflation Reduction Act (IRA), which included historic investments to boost manufacturing in the clean energy economy. Unfortunately, its incentives that will help create and support good clean energy jobs are being threatened by antiquated trade rules that work against our national interest.

The European Union and a few other governments claim that the structure of tax incentives for electric vehicle, electric battery, and renewable energy production offered through the IRA violates World Trade Organization (WTO) and Free Trade Agreement rules. And they are threatening to launch trade dispute challenges, attempting to force us to change our domestic laws that we, and the world, desperately need.

Time is running out to meet our climate commitments and to invest in the local clean energy jobs for U.S. workers made possible by the IRA’s incentives.The IRA has the potential to be a gamechanger for the industrial towns hit hardest by decades of offshoring. By refusing to let outdated corporate-friendly trade rules stand in the way of swift and certain implementation of the IRA, the administration has a historic opportunity to usher in a new wave of manufacturing jobs and rebuild trust with American workers.

Thus, we strongly urge you to ensure that the IRA is implemented as intended, without delays or technical changes that erode its promises to U.S. workers and climate goals.

Out-dated trade rules should not be used to undermine our laws intended to support a growing clean energy economy.

Sincerely,

International Association of Machinists and Aerospace Workers (IAM)
International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW)
United Steelworkers (USW)
Public Citizen
Sierra Club