In Washington, Macron to hunt aid for Europe Inc amid China competitors By Reuters

By Michel Rose and John Irish

PARIS (Reuters) -French President Emmanuel Macron will likely be hosted by U.S. President Joe Biden subsequent week in a uncommon state go to aimed toward highlighting Franco-American friendship moderately than the bitter financial competitors between the 2 sides of the pond.

Greater than a yr after Washington, London and Canberra torpedoed a giant 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 may deal a deadly blow to their industries, that are already reeling from excessive vitality costs brought on by Russia’s invasion of Ukraine.

Macron will attempt to persuade the USA it’s of their curiosity to not weaken European firms at a time Western allies are dealing with intense financial competitors from China, which they are saying makes use of its financial would possibly as diplomatic leverage.

“The pitch will likely be: there’s clearly a Chinese language problem and we will help get others within the EU out of their naivete on this. However you possibly can’t ask us to assist on China and do an IRA on us,” a French diplomat advised Reuters on situation of anonymity.

The French chief will attempt to negotiate exemptions for European firms on the mannequin of these Mexico and Canada has already acquired, a French presidential adviser mentioned.

German carmakers, for which the U.S. is a giant export market, are among the many largest victims of the IRA bundle which subsides U.S.-made electrical vehicles, the French presidential mentioned. French carmakers don’t export to the U.S. however France has main automotive components suppliers, which might be affected.

Power points can even characteristic prominently within the talks on the White Home, with France hoping to spice up nuclear vitality cooperation. Macron desires France to construct extra nuclear reactors however it’s scuffling with corrosion points at its ageing crops.

French utility EDF (EPA:) has drafted in a whole lot of specialized staff, together with welders, from U.S. nuclear plant maker Westinghouse, to assist repair points at French nuclear crops 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 vitality points, the French presidential advisor mentioned.

French oil big TotalEnergies owns a giant liquefied terminal within the state on the Gulf of Mexico and Macron, who has complained in regards to the excessive value of U.S. fuel exports, mentioned he’ll deliver up the difficulty with Biden.

“The US produce low-cost fuel however promote it to us at excessive value,” Macron advised French executives on November 8. “And on high of that they’ve large subsidies in some sectors that make our tasks 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 degree enjoying area,” he mentioned.