Businesses from the UK can access US green finance as part of a plan to strengthen UK-US relations announced by Rishi Sunak and Joe Biden. The pair announced the Atlantic Declaration, aimed at strengthening economic ties between the two countries, during a press conference at the White House.
The prime minister said the deal, not a full trade deal, would be beneficial “as soon as possible”.
UK electric carmakers can access US green subsidies and tax credits. When the two sides announced their partnership to strengthen economic security, Mr. Sunak said the UK-US relationship was an “indispensable alliance”.
The Atlantic Declaration includes commitments to ease trade barriers, closer ties with the defense industry, and an agreement on data protection and increased cooperation on AI.
Asked by the BBC’s political editor Chris Mason if the new deal was an ‘admitment of failure’ in securing a broader trade deal between the UK and US, Mr Sunak said. today’s agreement “meets the specific challenges and opportunities we face at this time”.
An Anglo-American free trade agreement is a key pledge in the Conservative Party manifesto for the 2019 general election.
Mr Sunak stressed that the statement’s more targeted approach was about “what can benefit our citizens as quickly as possible”. “Without a doubt, the economic relationship between our two countries has never been stronger,” said Sunak.
Plans for a comprehensive free trade agreement were shelved months ago. On the flight to Washington, Mr Sunak said: ‘For a while this has not been a priority for both the US and the UK.
Mr. Biden said the special relationship with the UK was “in very good shape”, alluding to their cooperation with Ukraine. “Together, we are providing economic and humanitarian aid as well as security systems to Ukraine in the fight against the brutal invasion from Russia,” he said.
New green finance
The Atlantic Declaration includes plans to mitigate some of the impact of the landmark US Inflation Reduction Act (IRA) on the UK economy, with proposals to remove barriers are affecting the electric vehicle battery trade.
Under current policy, the IRA offers a tax credit of $3,750 (£3,000) for each electric vehicle (EV) manufactured in the United States or using parts mined, processed or manufactured in the country.
The UK is already a net exporter of EV battery materials to the US. But countries that don’t have a trade agreement with the U.S. don’t have access to IRA benefits.
The Atlantic Declaration commits the UK and the US to a new Significant Minerals Agreement – which will provide buyers with vehicles made from treated, recycled or mined critical minerals by UK companies accessing tax credits.
The statement said the deal would be reached after consultations with the US Congress. Japan has reached a similar agreement, allowing Japanese companies to also exempt export taxes on minerals used to make batteries for electric vehicles.
“Push the limits”
The statement also includes a commitment to a “new data bridge between the UK and the US” that will allow UK businesses to freely transfer data to US certified organizations without paying fee. Downing Street estimates the change will affect around 55,000 businesses in the UK, resulting in direct savings of £92.4 million a year.
Mr. Biden also supported Mr. Sunak’s plan to host an international AI security summit to be held in the UK later this year. “The UK and the US have always pushed the boundaries of what we can achieve together. “It is therefore natural that, in the face of the greatest transformation of the economy since the industrial revolution, together we seek to build a stronger economic future.
“The Atlantic Declaration sets a new standard for economic cooperation, propelling our economy into the future so we can protect our people, create jobs and grow our economies together.” economy.”
Both Mr. Biden and Mr. Sunak agreed to work on improving supply chain resiliency and efforts would be intensified to exclude Vladimir Putin’s Russia from the global civilian nuclear market.
