The Prime Minister and President Biden have agreed an innovative economic partnership today (Thursday), which will see our countries work together more closely than ever before across the full spectrum of our economic, technological, commercial and trade relations.
The ‘Atlantic Declaration’ heralds a new era for the thriving economic relationship between the UK and US, and builds on decades of very close cooperation on defence and security. It applies the same principle – that the UK and US will work together in the face of new challenges – to our economic partnership as we long have to our defence alliance.
This unprecedented bilateral partnership takes a different approach to our economic relationship than we have taken before, recognising that our economies must move with speed and agility to address the challenges we face.
Following their meeting at the White House today, the Prime Minister and President Biden have announced new measures under the Atlantic Declaration – an action plan for the future of our partnership. This includes:
- Working together to reduce our vulnerabilities across critical technology supply chains, including by sharing analysis, developing and deepening our channels for coordination and timely consultation during crises. To support the critical clean energy industry, our net zero ambitions and to keep Russia out of the global civil nuclear power market, the UK and US will launch a new civil nuclear partnership.
- An innovative approach targeting specific areas for economic advancement. This includes a commitment in principle to a new UK-US Data Bridge which would make it easier for around 55,000 UK businesses to transfer data freely to certified US organisations without cumbersome red tape – translating into an estimated £92.4m in direct savings per year. It also includes the immediate launch of negotiations on a Critical Minerals Agreement.
- Stepping up international efforts to ensure the safe and responsible development of AI, starting with an international summit on AI safety which will be hosted in the UK later this year, welcomed by the US.
- Enhancing cooperation on measures to stop our adversaries from developing and acquiring sensitive technologies that can be used to do us harm.
- Research collaboration to entrench UK and US leadership in the most important future technologies – AI, future telecoms (5G & 6G), quantum, semiconductors and engineering biology.
- New opportunities for increased investment in one another’s economies. President Biden plans to ask the US Congress to designate the UK as a ‘domestic source’ within the meaning of Title III of the the Defense Production Act – meaning British companies can benefit from US Government investment on the same basis as American firms. The act has previously been used to speed up the development of hypersonic weapons.
Our economies are going through the greatest change since the industrial revolution, with emerging technologies like biotechnology and AI transforming the way we live and work. But while those new technologies offer huge potential to save lives, grow our economies and tackle climate change, in the hands of our adversaries they could be used as tools to undermine our national security.
With our highly interconnected economies, our leadership in areas like emerging technology and our deeply entrenched shared values, the UK and US are natural partners to approach these issues together.
This new approach to our economic partnership, which puts the strength of our relationship front and centre in addressing the biggest challenges we face, will both deliver for our people and support an open international order.
The Prime Minister said:
‘’The UK and US have always pushed the boundaries of what two countries can achieve together. Over generations we have fought alongside one another, shared intelligence we don’t share with anyone else, and built the strongest investment relationship in world history.’’
‘’So it’s 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.’’
Negotiations will begin immediately on many aspects of the partnership, including on a Critical Minerals Agreement. An agreement would give buyers of vehicles made using critical minerals processed or mined by UK companies access to tax credits in line with the US Inflation Reduction Act. The Inflation Reduction Act provides a $3,750 incentive for each vehicle, on conditions including that the critical minerals used in its production – principally used in the battery – are sourced from the US or a country with whom the US has a critical minerals agreement.
The UK is already a net exporter of raw materials for EV batteries to the US and this agreement will help UK-based firms involved in the mining, recycling and refining of critical minerals who are suppling US electric vehicle and battery manufacturers – benefitting this growing industry. This is a a sector with companies all over the UK, including nickel production in Wales and lithium processing in Teesside.
With a trading relationship worth £279 billion a year, and shared investment totalling over £1 trillion, the US is already our most important trading partner. Earlier this week the Prime Minister announced £14 billion of new US investment into the UK, demonstrating the importance of this relationship to UK growth and jobs.
Teams from the White House and Downing Street will meet regularly to drive action under the Atlantic Declaration, ensuring it continues to meet the high objectives the Prime Minister and President Biden have set today.
Source: Prime Minister’s Office, 10 Downing Street, Department for Business and Trade, and The Rt Hon Rishi Sunak MP
