Rishi Sunak will discuss trade with Joe Biden in US discussions 2023

Prime Minister Rishi Sunak plans to address Joe Biden’s green industry investment proposal with the president when he visits the US.

Mr. Sunak stated “subsidy races” will not achieve climate targets on the plane to Washington DC.

British authorities say Mr. Biden’s Inflation Reduction Act (IRA) hurts international commerce.

To reduce carbon emissions, billions in tax credits and subsidies have been given to solar panel and wind turbine manufacturers and electric car makers.

The US bill allocates $370bn (£297bn) towards green technologies.

The EU called the rule anti-competitive, and Energy Secretary Grant Shapps called it “dangerous because it could slip into protectionism” earlier this year.

After meeting with business executives and prominent lawmakers, Mr. Sunak will meet Mr. Biden for the fourth time this year at the White House on Thursday to discuss it.

The prime minister’s spokesperson said Mr. Sunak will discuss green tech, the Ukraine crisis, and AI regulation.

Downing Street said the prime minister will increase economic security to match UK-US defense cooperation.

Mr. Sunak’s first official travel to Washington DC as prime minister was preceded by tensions about Mr. Biden’s economic package’s worldwide consequences.

Labour accused the UK government of falling behind in a worldwide contest to recruit future businesses because it had no preparations to match the US objectives.

On his way to Washington, reporters questioned Mr. Sunak if Mr. Biden could do anything to mitigate his package’s economic effects on the UK.

“It’s something that he [President Biden] and I have discussed in the past and you’d expect us to continue discussing it,” Mr. Sunak added.

The prime minister cited the G7’s consensus declaration from its previous meeting in Japan when asked if he agreed with President Biden that a resilient economy sometimes required protective measures in crucial areas.

He added the declaration “makes it very clear that G7 countries don’t believe in protectionism as the answer to this challenge and also don’t believe in subsidy races that are zero sum”.

His trip may announce a vital minerals arrangement that would allow British carmakers that export electric vehicles to the US to get some of the tax advantages provided to American manufacturers.

This year, the US reached an agreement with Japan and started discussions with the EU.

However, President Biden has halted discussions on a bigger UK-US free trade pact, forcing the UK to pursue less comprehensive mini-deals with 20 states.

AI rules

Mr. Sunak also wants to address AI laws to establish the UK as a global participant.

The prime minister is convening a worldwide meeting on AI regulation in September and has indicated interest in hosting a new international regulator for the developing technology.

Since the UK is currently excluded from crucial European and American regulator meetings like the Tech and Trade Council (TTC), its ability to set new global standards outside the EU is questionable.

The two leaders will also address the conflict in Ukraine, which may be entering a crucial phase with hints of a long-awaited Ukrainian counter-offensive.

After Ukraine blamed Russia for the Kakhovka dam collapse in Russian-held Ukraine, hundreds were evacuated. Moscow claims Ukrainian shelling destroyed the dam.

Mr. Sunak told reporters on the plane to the US that it was “too soon” to draw a “definitive judgement” on whether Russia was behind the assault.

If Russia was responsible, it would “demonstrate the new lows that we will have seen from Russian aggression.”