UK Prime Minister Rishi Sunak and US President Joe Biden have signed the Atlantic Declaration, a landmark agreement aimed at deepening economic ties between the two countries and protecting against economic shocks, such as energy price fluctuations driven by countries like Russia.
The declaration includes provisions to enhance cooperation in critical technology supply chains, support the clean energy industry to limit Russia’s influence in the global civil nuclear power market, facilitate data transfer between certified US organizations and UK businesses, and strengthen efforts to prevent adversaries from accessing sensitive technologies.
The agreement also emphasizes cooperation on artificial intelligence, with Prime Minister Sunak announcing plans for a global summit in the UK. The UK aims to become a global leader in AI regulation, while the US already has advanced discussions with the EU on a new code of conduct.
Although the Atlantic Declaration falls short of the full free trade deal promised in the Conservative Party’s 2019 manifesto, Prime Minister Sunak justified the decision by highlighting the dramatic changes in the world due to COVID-19 and the conflict in Ukraine.
Negotiations will commence on various aspects of the partnership, including a Critical Minerals Agreement. The agreement comes as the US takes a more protectionist stance, as reflected in the Inflation Reduction Act, which raised concerns among British ministers regarding subsidies for green technology.
While the declaration signals a shift towards a more protectionist approach among allies and allows the UK to address new barriers in the US, it does not fully meet the ambition of a comprehensive free trade deal. Former US President Barack Obama’s remark about the UK being at the back of the queue for a trade deal and the comments of former Chancellor George Osborne suggest that a full free trade agreement was challenging to achieve.
Prime Minister Sunak expressed confidence in the UK-US partnership, stating that both countries have a history of pushing boundaries and achieving shared goals. The Atlantic Declaration sets a new standard for economic cooperation, enabling the protection of people, job creation, and economic growth for both nations.
