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Rishi Sunak and Joe Biden announce green funding agreement Rishi Sunak and Joe Biden announce green funding agreement
(about 3 hours later)
UK firms could gain access to billions in US green funding under new plans announced by Rishi Sunak and Joe Biden. UK firms could gain access to US green funding as part of plans to boost UK and US ties announced by Rishi Sunak and Joe Biden.
The Atlantic Declaration would allow British electric car firms access to new US green tax credits and subsidies, steps up co-operation on AI and includes a data protection deal. The pair unveiled the Atlantic Declaration, to strengthen economic ties between the two countries, at a White House press conference.
The deal may be subject to approval by Congress and state-by-state agreement in the US for some areas. The PM said the agreement, which falls short of a full trade deal would bring benefits "as quickly as possible".
Mr Sunak said the deal "sets a new standard for economic cooperation". UK electric car firms may get access to US green tax credits and subsidies.
As the pair unveiled their partnership to bolster economic security, Mr Sunak said the UK-US relationship was an "indispensable alliance".
The Atlantic Declaration, includes commitments on easing trade barriers, closer defence industry ties and a data protection deal and steps up co-operation on AI.
Chris Mason: What Sunak is trying to achieve in the USChris Mason: What Sunak is trying to achieve in the US
Is UK being left behind in global fight for investment?Is UK being left behind in global fight for investment?
The agreement comes after hopes of a full-blown free trade deal were abandoned. On the plane ride over to Washington Mr Sunak said: "For a while now, that has not been a priority for either the US or UK." Asked by BBC Political Editor Chris Mason whether the new deal was an "acknowledgement of the failure" to strike a broader trade agreement between the UK and US, Mr Sunak said today's deal "responds to particular challenges and opportunities we face right now".
At a press conference alongside Mr Biden, Mr Sunak insisted the targeted approach of the Atlantic Declaration was about "what can do the most benefit to our citizens as quickly as possible". A UK-US free trade agreement was a key pledge in the Conservative Party's 2019 general election manifesto.
The deal, he argued was a better response to the economic challenges posed by emerging technologies, saying it was "ambitious in what it seeks to achieve". Mr Sunak insisted the more targeted approach of the declaration was about "what can do the most benefit to our citizens as quickly as possible".
Tens of thousands of small businesses would benefit from the deal removing trade restrictions.
"Be in no doubt, the economic relationship between our two countries has never been stronger," Mr Sunak said."Be in no doubt, the economic relationship between our two countries has never been stronger," Mr Sunak said.
The deal would mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy. Plans for a full free trade agreement were abandoned months ago. On the plane ride over to Washington Mr Sunak said: "For a while now, that has not been a priority for either the US or UK."
Mr Biden's key policy is focussed on building up the US domestic energy market and contains $370bn (£297bn) to boost green technology production. Mr Biden said the special relationship with the UK was in "real good shape", referring to their co-operation on Ukraine.
"Together we are providing economic and humanitarian aid and security systems to Ukraine in their fight against a brutal invasion from Russia," he said.
New green funding
The Atlantic Declaration includes plans to mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy, with proposals to remove barriers which affected trade in electric vehicle batteries.
Under current policy, the IRA provides tax credit worth $3,750 (£3,000) for each electric vehicle (EV) manufactured in the US, or which use components mined, processed or manufactured in the country.Under current policy, the IRA provides tax credit worth $3,750 (£3,000) for each electric vehicle (EV) manufactured in the US, or which use components mined, processed or manufactured in the country.
The UK is already a net exporter of raw materials for EV batteries to the US. But nations without a US trade deal are barred from accessing IRA subsidies.The UK is already a net exporter of raw materials for EV batteries to the US. But nations without a US trade deal are barred from accessing IRA subsidies.
The Atlantic Declaration commits the UK and US to working on a new Critical Minerals Agreement - which would give buyers of vehicles made using critical minerals processed, recycled or mined by UK companies access to tax credits. The Atlantic Declaration commits the UK and US to working on a new critical minerals agreement - which would give buyers of vehicles made using critical minerals processed, recycled or mined by UK companies access to tax credits.
The declaration says the agreement would be launched after consultation with US Congress.The declaration says the agreement would be launched after consultation with US Congress.
Japan already has a similar deal, which allows Japanese firms to also swerve export duties on minerals used in producing EV batteries.Japan already has a similar deal, which allows Japanese firms to also swerve export duties on minerals used in producing EV batteries.
'Pushed the boundaries'
The declaration also includes a commitment to a "new UK-US Data Bridge" which would allow UK firms to transfer data freely to certified US organisations without paying a levy.The declaration also includes a commitment to a "new UK-US Data Bridge" which would allow UK firms to transfer data freely to certified US organisations without paying a levy.
Downing Street estimate the change will affect around 55,000 UK businesses - translating into £92.4m in direct savings per year.Downing Street estimate the change will affect around 55,000 UK businesses - translating into £92.4m in direct savings per year.
Mr Biden also supported Mr Sunak's plans to set up an international summit on AI safety which will be hosted in the UK later this year.Mr Biden also supported Mr Sunak's plans to set up an international summit on AI safety which will be hosted in the UK later this year.
The prime minister said: "The UK and US have always pushed the boundaries of what two countries can achieve together.The prime minister said: "The UK and US have always pushed the boundaries of what two countries can achieve together.
"So it is natural that, when faced with the greatest transformation in our economies since the industrial revolution, we would look to each other to build a stronger economic future together."So it is natural that, when faced with the greatest transformation in our economies since the industrial revolution, we would look to each other to build a stronger economic future together.
"The Atlantic Declaration sets a new standard for economic cooperation, propelling our economies into the future so we can protect our people, create jobs and grow our economies together.""The Atlantic Declaration sets a new standard for economic cooperation, propelling our economies into the future so we can protect our people, create jobs and grow our economies together."
Both Mr Biden and Mr Sunak agree to carry out work to improve the resilience of supply chains and efforts will be stepped up to shut Vladimir Putin's Russia out of the global civil nuclear market.Both Mr Biden and Mr Sunak agree to carry out work to improve the resilience of supply chains and efforts will be stepped up to shut Vladimir Putin's Russia out of the global civil nuclear market.
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