Rishi Sunak, the UK Chancellor of the Exchequer, and US President Joe Biden have announced a significant agreement for transatlantic cooperation. This agreement signifies a revival in ties between the UK and the US following the turbulence of Brexit and positions the UK within the economic orbit of the US administration.
While referred to as the "Atlantic declaration," the agreement consists of a series of economic mini-deals rather than a comprehensive free trade agreement. The symbolic importance lies in the shift away from the UK's previous emphasis on unfettered free trade toward mutual protectionism.
The deal aims to provide British green energy and defense companies with access to US markets, enabling British businesses to benefit from US subsidies as the UK moves away from criticizing Washington's economic policies and seeks to capitalize on them.
The visit by Sunak was accompanied by full diplomatic protocols, indicating a willingness on the part of President Biden and his team to work more closely with the UK as an ally, despite the UK's diminished standing under Prime Minister Boris Johnson and Trade Secretary Liz Truss.
The declaration, promoted by No 10 (the UK Prime Minister's Office), is described as "a new action plan for cooperation on the biggest economic challenges of our time." It aims to facilitate faster movement and deeper cooperation between the two countries on issues such as supply chains.
This agreement signifies a departure from hopes of a comprehensive post-Brexit free trade deal and instead outlines sector-specific agreements covering areas such as defense procurement, data sharing, and professional qualifications.
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