© Reuters. FILE PHOTO: US President Joe Biden (L) and French President Emmanuel Macron communicate after posing for an off-the-cuff group picture at a bench after a working dinner in the course of the G7 Summit held at Elmau Fortress, in Kruen close to Garmisch-Partenkirchen, Germany June 26,
By Michel Rose and John Irish
PARIS (Reuters) -French President Emmanuel Macron shall be hosted by U.S. President Joe Biden subsequent week in a uncommon state go to geared toward highlighting Franco-American friendship fairly than the bitter financial competitors between the 2 sides of the pond.
Greater than a 12 months after Washington, London and Canberra torpedoed an enormous French submarine contract, pushing Franco-US relations to breaking level, the 2 international locations are anticipated to placed on a present of unity on widespread threats from Russia and China.
However the elephant within the Oval Room would be the U.S. Inflation Discount Act (IRA). Europeans say the large subsidy bundle to U.S. producers might deal a deadly blow to their industries, that are already reeling from excessive power costs attributable to Russia’s invasion of Ukraine.
Macron will attempt to persuade america it’s of their curiosity to not weaken European corporations at a time Western allies are going through intense financial competitors from China, which they are saying makes use of its financial would possibly as diplomatic leverage.
“The pitch shall be: there’s clearly a Chinese language problem and we might help get others within the EU out of their naivete on this. However you’ll be able to’t ask us to assist on China and do an IRA on us,” a French diplomat instructed Reuters on situation of anonymity.
The French chief will attempt to negotiate exemptions for European corporations on the mannequin of these Mexico and Canada has already obtained, a French presidential adviser stated.
German carmakers, for which the U.S. is an enormous export market, are among the many greatest victims of the IRA bundle which subsides U.S.-made electrical automobiles, the French presidential stated. French carmakers don’t export to the U.S. however France has main automotive components suppliers, which might be affected.
Vitality points can even characteristic prominently within the talks on the White Home, with France hoping to spice up nuclear power cooperation. Macron desires France to construct extra nuclear reactors however it’s scuffling with corrosion points at its ageing vegetation.
French utility EDF (EPA:) has drafted in lots of of specialized employees, together with welders, from U.S. nuclear plant maker Westinghouse, to assist repair points at French nuclear vegetation and keep away from energy outages in Europe this winter.
Macron can even journey to Louisiana, ostensibly to pay tribute to the state’s French heritage, but additionally to debate power points, the French presidential advisor stated.
French oil big TotalEnergies owns an enormous liquefied terminal within the state on the Gulf of Mexico and Macron, who has complained concerning the excessive value of U.S. fuel exports, stated he’ll deliver up the difficulty with Biden.
“The US produce low cost fuel however promote it to us at excessive value,” Macron instructed French executives on November 8. “And on prime of that they’ve large subsidies in some sectors that make our initiatives uncompetitive.”
“I believe that is unfriendly and I’ll go to Washington in a spirit of friendship on the finish of the month… to easily plead for a stage enjoying discipline,” he stated.
