Tokyo Wants U.S. Support Measures to Cover Japanese Vehicles

Economy Politics

Tokyo, Nov. 5 (Jiji Press)--Japan in a document submitted to the U.S. Treasury Department has said that support measures for electric vehicle purchases included in a new U.S. anti-inflation law should be operated in a fair manner, calling for the coverage of Japanese automobiles in the favorable treatment, the foreign and industry ministries said Saturday.

In the document, dated Friday, the Japanese government voiced concern over the U.S. measures being limited to vehicles assembled in North America and asked the U.S. side to implement the special treatment so that electric vehicles made by automakers in Japan, an ally of the United States, are equally eligible for tax deductions, according to the Japanese ministry.

The government positions the automotive industry, which is undergoing major technological innovations, as a pillar of future economic growth. As Japanese automakers' electric vehicle production in North America has been limited, the government is concerned that they would be put at a competitive disadvantage depending on how the support measures are implemented.

Under the law, enacted in August, tax deductions of up to 7,500 dollars are offered per unit for purchases of electric vehicles and other eco-friendly automobiles.

But the tax measures are only available to vehicles assembled in North America. Also to be eligible for the incentives, key minerals for batteries for such vehicles must be procured in the United States or countries that have signed free trade agreements with the United States.

[Copyright The Jiji Press, Ltd.]

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