The International Trade Council is delighted to announce that Prime Minister Rishi Sunak is embarking on a significant visit to the United States where he is anticipated to discuss various trade-related subjects with President Joe Biden, among them, the President's landmark green industry investment package.
On his journey to Washington DC, Mr. Sunak expressed reservations about "subsidy races" as a means of achieving climate objectives. The US Inflation Reduction Act (IRA), comprising $370 billion (£297 billion) to spur green technology in the US, has drawn criticism from some British ministers who regard it as detrimental to global trade.
This extensive package, aimed at reducing carbon emissions, grants billions in tax credits and subsidies to accelerate the manufacture of solar panels and wind turbines, as well as fostering the adoption of electric cars.
Given the global implications of the US economic package, tensions have been escalating in anticipation of this visit, marking Mr. Sunak's first official trip to Washington DC as Prime Minister. The UK Government, however, has stated that it doesn't intend to match the magnitude of the US plans, leading to claims from Labour that the UK risks lagging in the global race for future industries.
In his interaction with reporters, Mr. Sunak expressed his anticipation of further discussions with President Biden on the economic impacts of his package on the UK. He cited the joint statement issued at the conclusion of the latest G7 summit in Japan, which emphasized that G7 nations do not endorse protectionism or subsidy races as solutions to these challenges.
While the broader UK-US free trade agreement negotiations have hit a pause, there are reports that the discussions may yield a critical minerals agreement, allowing UK electric vehicle manufacturers exporting to the US to avail some of the tax credits offered to American firms.
Other anticipated discussion points during the visit include the enhancement of green technology, the situation in Ukraine, and the regulation of artificial intelligence. Mr. Sunak's ambitious agenda highlights the UK's intention to emerge as a major influencer in the global landscape of artificial intelligence regulation.
The International Trade Council applauds this critical dialogue between the UK and the US and looks forward to supporting the creation of a more prosperous, sustainable, and inclusive global economy.
