Beautiful Virgin Islands

Tuesday, Mar 28, 2023

Macron to Biden: C’mon, we’re allies

Macron to Biden: C’mon, we’re allies

Europeans fear America is taking advantage of the war in Ukraine to build a commercial edge over EU rivals.

French President Emmanuel Macron's visit to Washington this week looks like the last big-ticket diplomatic gala event where Europe can persuade U.S. President Joe Biden to go easy on his EU allies and avoid a trade war.

Macron will get the cordon bleu, black-tie treatment — basking in all the pomp and ceremony of the first full state visit that Biden has laid on, with a troop review and musical accompaniment from Grammy-award winning musician Jon Batiste.

Beneath the razzmatazz, however, Macron has a very clear wish list for Biden. He wants to know whether the U.S. president can offer cheaper gas and European access to a multibillion-dollar U.S. subsidy scheme for green industries. If Biden can't deliver, a transatlantic trade war will be more or less inevitable, risking a Europe vs. America subsidy race and tit-for-tat retaliatory tariffs.

The argument from the European camp is that America must show greater solidarity with Europe, which is bearing the economic brunt of war in Ukraine. If it weren't galling enough that EU energy prices are now soaring way above those in the U.S., the Europeans are incensed that Washington is bringing in a bumper subsidy package they say will only further suck investment away from Europe. Big carmaking nations like France and Germany are enraged that the Inflation Reduction Act will introduce what they see as potentially illegal "Buy American" incentives for electric vehicle purchases.

Against a backdrop of growing frustration in Europe that America is profiting from the war while its allies are struggling, Macron has already accused the U.S. of pursuing an "aggressive" protectionist approach and says that American gas prices are not "friendly." Of all EU countries, France is the most vociferous on defending Europe Inc. through trade defenses and pouring subsidies into corporate champions.

France's presidential palace, the Elysée, says Macron will be pushing for “more transatlantic unity” on investment policies and the impact of the war in Ukraine. 

“[Biden] must take into account what happens after the war. The EU is bearing the brunt of the sanctions, and the impact of this effort against Russia is quite clear,” said an official at the Elysée. “There’s a risk that imbalances will worsen as the EU pays higher energy prices and the U.S. takes measures to boost investment in industry,” he said. 

The key breakthrough for Macron would be some kind of concession that European allies could be win the same rights in the IRA subsidy deals as American, Canadian and Mexican companies. Gas poses a thornier question as prices are set by the market, but the Elysée says the U.S. president has a number of “options” to bring down prices. 

Whether the Americans — whose indifference to Europe's troubles hasn't gone unnoticed — will hear his message is far from assured. 


The oldest ally 


In many ways Macron’s visit to the U.S. is seen as a return to normality after the turbulent Trump years and the fierce diplomatic feud sparked by the AUKUS defense pact last year when Australia pulled out of a multibillion dollar submarine deal with France to instead acquire American-made nuclear-powered submarines. French Foreign Affairs Minister Jean-Yves Le Drian slammed the move as "a stab in the back" and in the ensuing row, France recalled its ambassador to the U.S. But the two nations have mended relations since and have been closely aligned on the Ukraine war, forming a core part of the international front against Putin's war.

There will be none of the crackling tension and awkward handshakes that marked the French president’s encounter with former President Donald Trump in 2018 during Macron's first state visit to the U.S. Since then, major global events have unfolded at a dizzying pace — from a global pandemic to the war in Ukraine, along with Russia’s alliance with China. The need for the two historic allies to deepen their alignment has rarely been stronger.

Whether Macron can bring home the goods remains to be seen, but the meeting looks set to deliver on the cinematic aspect of the Franco-American rekindling.

In a preview of the French president's state visit, John Kirby, spokesperson for the White House National Security Council, stressed the long history of close relations between the United States and its oldest ally. "This is an opportunity to highlight a foundational component of this administration's approach to foreign policy and that's through alliances," Kirby told reporters.

Biden and his counterpart are expected to talk effusively of all the things that unite France and the U.S.: a shared history (not least in the American war of independence), their support for Ukraine and their renewed commitment to NATO. 

After a ceremony at Arlington military cemetery and a private dinner with the Bidens on Wednesday, the French president will be officially welcomed at the White House with cannon volleys and a review of the troops on Thursday. The two leaders will then hold bilateral meetings, followed by a joint press conference and a state dinner where Batiste has been tapped to perform.

There is plenty the two presidents will agree on.

“Biden is an internationalist, he likes Europeans. There have been some tensions [with Macron], but there isn’t much difference in their views on many topics,” says Nicole Bacharan, a French-American political scientist and author. 

“I think it is going to be a success because both want it and need it. [Macron and Biden] can get along. There was the ugly AUKUS moment, but Putin has brought them together,” she said.

In addition to adjusting the IRA legislation so that European manufacturers benefit from the same perks granted to Canadian and Mexican ones, the French also want the Biden administration to pressure companies selling liquefied natural gas to Europe to keep prices acceptable and help Europeans bear the brunt of the sanctions. The Elysée believes the U.S. president has a number of “options” it could work on to bring down prices. 


Time runs out for the old Continent


It’s unclear however whether there is any appetite in the U.S. to give in to French demands. 

A high-ranked French economy ministry official noted that Washington was unlikely to abandon IRA measures. “It seems difficult since the text has been voted on in Congress," the official said, noting that “there are implementing measures for which they can have some flexibility to avoid damaging effects on Europe.”

While Macron pursues his charm offensive in Washington, others in France have been sending starker messages to their U.S. counterparts.

If the U.S. doesn’t modify its Inflation Reduction Act, the EU should use “coercive” measures to ensure that European companies benefit from the same conditions as American companies, French Trade Minister Olivier Becht told reporters Friday.

"I think certainly the issue will most likely come up," Kirby of the White House National Security Council, said of the IRA. "We look forward to having that discussion with our French counterparts."

France's Trade Minister Olivier Becht has been sending stark messages to his U.S. colleagues


He added: "The bottom line for us, is first of all we want to understand the concern. We're absolutely willing to have that conversation and to find a way to work through those issues of concern."

As of late on Monday evening, Washington was still giving no indication that it might modify IRA legislation, according to a readout of a video call between U.S. Trade Representative Katherine Tai and France's Economy Minister Bruno Le Maire.

But the time for peace talks with the U.S. is running out as key parts of it are set to come into force in January. Europeans have been sharpening their own response to the IRA, with many calling for Europe to urgently push through its own package of subsidies to protect sensitive industries. 

Macron himself has repeatedly said he would not stand by and watch the Americans and the Chinese pursue aggressive policies of state subsidies. France is pushing for the EU to roll out its own wave of subsidies and reserve them for European manufacturers. 

Washington doesn’t seem bothered by Brussels fighting fire with fire. On the contrary, the U.S. Trade Representative Tai encouraged Brussels to do the same and step up financial support to make Europe less dependent on foreign suppliers. 

A Franco-German consensus has emerged on the need to respond by boosting subsidies in strategic industrial sectors, but it’s still unclear what the EU response could be, with several EU countries unwilling to take a more protectionist approach. Paris has repeatedly said that Europe should also consider replicating what the U.S. has done and introduce measures that would treat European and foreign companies differently. 

Should Macron’s campaign fail, Europeans will face a stark choice: Take the path of protectionism and risk a subsidy race they can ill afford, or stand by and watch the protectionist walls go up across the globe.

Comments

Oh ya 117 days ago
Biden told Macron that by blowing up the pipeline it is allowing France a chance to buy way more expensive gas from a old ally.

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
AOC explains why she opposes banning TikTok
I have a dream, MLK inspiring speech
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Aretha Franklin, Marvis Staples - Oh Happy Day
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
BVI Freedom Song
Gordon Moore, a co-founder of Intel Corporation, died at 94
Billy Preston - You Can't Beat God Giving (Live)
Powell: Silicon Valley Bank was an 'outlier'
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Donald Trump arrested – Twitter goes wild with doctored pictures
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Hello Dolly
Paris Rioting vs Macron anti democratic law
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
'Sexual Fantasy' Assignment At US School Outrages Parents
Bob Marley - Get Up Stand Up
Credit Suisse to borrow $54 billion from Swiss central bank
Yes He Can
Russian Hackers Preparing New Cyber Assault Against Ukraine
What A Friend We Have In Jesus
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Unforgettable
If this was in Tehran, Moscow or Hong Kong
Touch The Hem Of His Garment
Nashville police officer, and a female driver shooting one another
The Lord's Prayer
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
THE GOD MOVEMENT...BEAUTIFUL BVI
Mexican President Claims Mexico is Safer than the U.S.
Siyahamba
A brief banking situation report
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Lady bites police officer and gets instantly reaction
Ramblin' Rose
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Protoje - Who Knows ft. Chronixx
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Pressure - Virgin Islands Nice
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Phil Wickham - House Of The Lord
Silicon Valley Bank exec was Lehman Brothers CFO
My God Is Real (Yes, God Is Real)
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Louis Armstrong - When The Saints Go Marching In
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Kanye West Sunday Service - hallelujah, salvation, and glory
Elon Musk Is Planning To Build A Town In Texas For His Employees
Jonathan Nelson - I Believe (Island Medley
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
From The Virgin Islands Sqad Up
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Common, John Legend - Glory
Fitness scam
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
I have a dream, MLK inspiring speech
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Aretha Franklin, Marvis Staples - Oh Happy Day
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
BVI Freedom Song
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Billy Preston - You Can't Beat God Giving (Live)
Banking regulators close SVB, the largest bank failure since the financial crisis
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Hello Dolly
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Bob Marley - Get Up Stand Up
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
Yes He Can
It's the question on everyone's lips: could a four-day workweek be the future of employment?
What A Friend We Have In Jesus
×