UK Prime Minister Rishi Sunak is set to visit the White House for the first time since he became the leader, with the aim of establishing stronger economic ties with the US. Despite the Joe Biden administration’s decision to suspend talks on a free-trade agreement, Sunak will seek to push for a stronger economic alliance between the two countries in his two-day visit to Washington. Besides meeting with congressional figures and industry executives, both leaders are expected to discuss pressing global matters like Russian aggression in Ukraine, Chinese assertiveness, and the regulation of artificial intelligence.
During the flight to Washington, Sunak told reporters that he intends to raise the issue of US clean technology subsidies and their effect on the UK economy. With that in mind, he will call for the US and UK to strengthen their economic ties to rival those of their defensive alliance. Sunak's office stated that the US’s and the UK’s existing trade ties represent an annual value of £279bn ($346bn), with US companies investing approximately £14bn in the UK.
Sunak noted that the UK needed to create an economic alliance that will complement its defensive capabilities, similar to the interoperability between the two countries’ military forces, which provides an edge over their shared adversaries. He added, “greater economic interoperability will give us a crucial edge in the decades ahead”.
Despite the Conservatives’ viewing a free-trade agreement with the US as a significant achievement of Brexit, Sunak’s office noted that he would not be pushing for new negotiations to commence. Under previous Presidents, Donald Trump and former Prime Minister Theresa May held five rounds of talks on the subject. However, Biden’s administration halted negotiations. Nonetheless, sources have told Bloomberg that the UK government sees areas of joint collaboration to strengthen crucial supply chains and protect key industries, including energy and semiconductors.
En-route to Washington, Sunak was asked about the US’s recent reassurance that it will take steps to remove the “rough edges” in its tremendous package of tax breaks and clean energy subsidies to avoid potential harm to allies’ investments, including the UK. Sunak stated that they have previously discussed clean technology subsidies and declined to comment on specific measures.
The Prime Minister pointed out that the UK is the fastest decarbonizing major economy and highlighted British leadership in floating wind turbines, offshore wind power, and carbon capture and storage technology. Sunak said, “There’s lots of different areas where we have a global competitive advantage that we can export around the world”.
Finally, Sunak’s office has noted that US firms have recently made £14bn ($17bn) worth of investments, creating 2,500 jobs. BlackRock, one of the world’s largest asset managers, announced £9bn ($11bn) of investment in the UK, taking its total UK investments to £500bn. The other investments include a £350m ($429m) investment by Mars Inc. in a new London facility, a £200m ($245m) investment by World Fuel Services Corp. through its hydrogen developer Meld stake, and expansions by Bank of New York Mellon Corp. and Vanguard Group Inc. in Manchester, among others. HCA Healthcare will also invest £33m ($40m) in a Birmingham hospital.