Security guards stand at the BYD booth at the Auto Shanghai show, in Shanghai, China April 19, 2023. Rome sees the French incentive framework as "reasonable", one of the sources said, adding the government was studying such an option. European Union competition rules do not allow countries to favour local producers. Paris has said criteria it adopted are compliant with WTO rules because exemptions are allowed for health and environmental reasons. Talks, which are expected to go on until the end of this year, include new incentive schemes in Italy.

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Persons: Aly, Adolfo Urso, Giuseppe Fonte, Gilles Guillaume, Parisand Giulio Piovaccari, Giulio Piovaccari, Keith Weir Organizations: Auto, REUTERS, Reuters, European Union, Fiat, Industry, Thomson Locations: Auto Shanghai, Shanghai, China, Italy, France, Europe, Rome, Paris, Milan