Macron to visit US, may make a case for European companies
US President Joe Biden is preparing to host his French counterpart Emmanuel Macron in Washington next week. Macron’s visit is expected to focus on Franco-American friendship rather than economic competition between the US and Europe.
Relations between France and the US had almost reached breaking point last year when UK, US and Australia torpedoed a big French submarine contract. But now, in the face of economic competition from China and Russia’s invasion of Ukraine, the two sides are expected to put on a show of unity.
But the elephant in the Oval Room will be the U.S. Inflation Reduction Act (IRA). Europeans say the massive subsidy package to US manufacturers could deal a lethal blow to their industries, which are already reeling from high energy prices caused by Russia’s invasion of Ukraine.
Macron is expected to try to convince the US that it is in their interest that European companies are not weakened at a time global politics is going through a difficult phase.
“The pitch will be: there’s obviously a Chinese challenge and we can help get others in the EU out of their naivete on this. But you can’t ask us to help on China and do an IRA on us,” a French diplomat told Reuters on condition of anonymity.
The French leader will try to negotiate exemptions for European companies on the model of those Mexico and Canada has already got, a French presidential adviser said.
German carmakers, for which the US is a big export market, are among the biggest victims of the IRA package which subsides US-made electric cars, the French presidential said. French carmakers do not export to the US but France has major car parts suppliers, which would be affected.
Energy issues will also feature prominently in the talks at the White House, with France hoping to boost nuclear energy cooperation. Macron wants France to build more nuclear reactors but it is struggling with corrosion issues at its ageing plants.
(With inputs from agencies)
