At a White House press conference, the two unveiled the Atlantic Declaration to strengthen economic connections between the two countries.
The Atlantic Declaration includes commitments to reduce trade barriers, strengthen ties within the defense industry, and reach a data protection agreement, as well as to increase AI cooperation.
If the new agreement was an “acknowledgment of the failure” to reach a broader trade agreement between the United Kingdom and the United States, Mr. Sunak stated that the current agreement “responds to particular challenges and opportunities we face right now.”
Mr. Sunak asserted that the declaration’s more targeted approach centered on “what can provide the most immediate benefit to our citizens.”
Mr. Sunak stated, “There is no doubt that the economic relationship between our two countries has never been stronger.”
Plans for a comprehensive free trade agreement have been abandoned for months. On the flight to Washington, Mr. Sunak stated, “This has not been a priority for the United States or the United Kingdom for some time.”
“This statement demonstrates that the government has failed to deliver the comprehensive trade deal promised in their 2019 manifesto or to secure the ally status under the Inflation Reduction Act, which is crucial for the automotive industry and the green transition,” Mr. Lammy said.
New ecological funding
The Atlantic Declaration includes plans to mitigate a portion of the impact of the United States’ signature Inflation Reduction Act (IRA) on the British economy by removing trade barriers affecting electric vehicle batteries.
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 domestically mined, processed, or manufactured components.
The Atlantic Declaration commits the United Kingdom and the United States to work on a new critical minerals accord that would grant tax credits to purchasers of vehicles manufactured with critical minerals processed, recycled, or mined by UK companies.
“Exceeded the boundaries”
“When confronted with the greatest transformation in our economies since the industrial revolution, it is natural that we would turn 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 that we can protect our people, create jobs, and grow our economies together.”
Mr. Biden and Mr. Sunak have agreed to strengthen the resilience of supply chains, and efforts will be intensified to prevent Vladimir Putin’s Russia from participating in the global civil nuclear market.