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

By Michel Rose and John Irish

PARIS (Reuters) -French President Emmanuel Macron can be hosted by U.S. President Joe Biden subsequent week in a uncommon state go to geared 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 frequent threats from Russia and China.

However the elephant within the Oval Room would be the U.S. Inflation Discount Act (IRA). Europeans say the huge subsidy package deal to U.S. producers may 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 the US it’s of their curiosity to not weaken European corporations at a time Western allies are dealing with intense financial competitors from China, which they are saying makes use of its financial may as diplomatic leverage.

“The pitch can 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’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 received, a French presidential adviser mentioned.

German carmakers, for which the U.S. is a giant export market, are among the many greatest victims of the IRA package deal 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 may also 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 staff, 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 may also journey to Louisiana, ostensibly to pay tribute to the state’s French heritage, but additionally to debate power 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 concerning the excessive worth of U.S. gasoline exports, mentioned he’ll convey up the difficulty with Biden.

“The US produce low-cost gasoline however promote it to us at excessive worth,” Macron instructed French executives on November 8. “And on prime 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 stage enjoying subject,” he mentioned.