The deal can benefit 55,000 businesses in the UK, with a direct impact of more than BRL 570 million.
British companies can access billions of dollars in green finance after deals announced Thursday (8/6) by British Prime Minister Rishi Sunak and US President Joe Biden.
The Atlantic Declaration should give UK electric car companies access to new US green credits and tax subsidies, step up cooperation on artificial intelligence and include a data protection agreement.
The measures may be subject to congressional approval and US state agreements for some areas.
The partnership comes after hopes of a full free trade deal were abandoned.
Sunak said the agreement “sets a new standard for economic cooperation”.
“For a while, this hasn’t been a priority, either for the US or the UK,” the British prime minister said, during a plane trip to Washington.
Tens of thousands of small UK businesses could benefit from the deal, which removes trade restrictions.
“I have no doubts, the economic relationship between our two countries has never been stronger,” Sunak said during a press conference with Biden.
The deal would mitigate some of the impact of the US Inflation Reduction Act (IRA) on the UK economy.
The Biden administration’s main policy centers on strengthening the domestic energy market in the United States and includes $370 billion (R$1.8 trillion) to boost green technology production.
Under current policy, the IRA provides a $3,750 (R$18,500) tax credit for every electric vehicle that is manufactured in the United States or uses components mined, processed, or manufactured in the United States.
The UK is already a net exporter of EV battery raw materials to the US. But countries without a trade agreement with the United States cannot access IRA subsidies.
The Atlantic Declaration calls on the UK and the US to work on a new deal on critical minerals, which would give buyers of vehicles made with critical minerals processed, recycled or mined by UK companies access to tax credits.
The statement said the deal would be released after consulting the US Congress.
Japan already has a similar deal, which allows Japanese companies to also avoid export duties on minerals used in the production of electric vehicle batteries.
The statement also includes a commitment to a “new UK-US data bridge” that would allow UK companies to freely transfer data to certified US organizations without paying a fee.
The UK government estimates the change will affect around 55,000 UK businesses, translating into £92.4m in direct savings per year.
Biden also backed Sunak’s plans to set up an international AI security summit, to be held in the UK later this year.
“The UK and the US have always pushed the boundaries of what two countries can achieve together,” said the British prime minister.
“So it is only natural that, facing the greatest transformation of our economies since the Industrial Revolution, we look to each other to build a stronger economic future together,” Sunak added.
“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 Biden and Sunak agreed to work to improve the resilience of supply chains and step up efforts to keep Vladimir Putin’s Russia out of the global civilian nuclear market.
Source: Terra
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