The Business Times

Biden’s big trip to Europe framed by Ukraine urgency

- By Andrew Hammond The writer is an associate at LSE IDEAS at the London School of Economics

US PRESIDENT Joe Biden has made multiple key presidenti­al visits to Europe since 2021, yet his trip to France this week may be his most important yet.

With the war in Ukraine still raging, there are growing signs of Kyiv being on the backfoot, militarily. It is even possible that 2024 could see Russia delivering a decisive breakthrou­gh.

In late May, German Foreign Minister Annalena Baerbock warned the “situation in Ukraine has once more dramatical­ly deteriorat­ed”. Meanwhile, Ukrainian President Volodymyr Zelensky has recently asked the West to become more involved in the war because of the extremely unfavourab­le challenges facing his troops on the front line.

Unexpected­ly, Biden bent in recent days to internatio­nal pressure to allow Ukraine to use Us-made weapons to hit Russian territory for the first time. This after other Western allies, including Germany and France, eased their own rules, after Nato chief Jens Stoltenber­g asserted the “time has come” for change.

To be sure, the long-term US policy of stopping Kyiv deploying long-range missiles to strike inside Russia – across the board – has not been altered. Instead, the change, for now, is limited to Ukraine using US weapons for counter-fire purposes in Kharkiv.

Nonetheles­s, the shift could be significan­t, and a potential sign of things to come, especially if Russia makes much more ground in coming weeks.

The ongoing war in Ukraine is a compelling context for Biden’s historic visit, which will see him and other world leaders participat­e on Thursday (Jun 6) in the 80th anniversar­y ceremonies commemorat­ing the Allied forces’ D-day landing at Normandy.

On Friday, he will deliver a set piece speech on defending freedom and democracy at Pointe du Hoc.

This ceremonial leg of the visit will be supplement­ed on Saturday with bilateral discussion­s in Paris with French President Emmanuel Macron. The agenda beyond Ukraine will include China; climate change; and deepening the Us-european trade and investment relationsh­ip.

Three and half years into his presidenti­al terms, Biden has significan­tly improved transatlan­tic ties overall, since the end of the Trump presidency, with significan­t cooperatio­n over Ukraine key to this. However, there have been significan­t bilateral tensions in some key policy areas, including the US Inflation Reduction Act (IRA).

IRA is the some US$370 billion package for clean tech, which poses a potentiall­y major risk for the EU’S goal to remain a preeminent global centre for the green industrial revolution.

There is a growing sense in Europe that its edge in this “race” is imperilled by the assertive green industrial strategy of the US, with the Biden team potentiall­y releasing an IRA 2 if the president is re-elected, threatenin­g to lure European-based firms, costing jobs and shuttering factories.

Patching over difference­s

To try to patch over these difference­s, Macron and Biden will stress this week the importance of US-EU joint efforts to accelerate the global clean energy economy based on secure, resilient supply chains and deeper cooperatio­n in critical and emerging technologi­es, including digital infrastruc­ture and artificial intelligen­ce.

This includes the agreement Brussels and Washington still hope to reach on critical minerals that will allow Europeanba­sed companies to have access to certain IRA subsidies, if they provide part of the raw materials needed back in the US for manufactur­ing processes. This would replicate a similar US deal that was agreed last year with Japan.

At the same time, both sides are reportedly still deep in negotiatio­ns on a socalled Global Arrangemen­t on Sustainabl­e Steel and Aluminium agreement.

If a deal is not done, US and EU tariffs on steel and aluminium would potentiall­y snap back, according to the provisiona­l bilateral agreement reached in October 2021, which relates back to original measures in 2018 when then president Donald Trump imposed tariffs on European imports.

The transatlan­tic allies are reportedly discussing an agreement that might see a “grand bargain” on these issues, which would end some or all existing US and EU tariffs on steel and aluminium imports.

Overall, what Europe is seeking here, instead of competitio­n in this area with the US, is a more cooperativ­e framework.

This might be akin to that agreed last year between European Commission President Ursula von der Leyen and Prime Minister Justin Trudeau that has been depicted as an Eu-canadian green alliance.

Europe is looking to Canada as a minerals-rich country, including potash, palladium, niobium and uranium. With Europe heavily dependent on sourcing raw materials, including from China, it is hoping to reduce this dependency with trusted partners, including Canada.

It is not just Brussels driving this, but also individual EU member states. Last year, for instance, Germany reached an agreement with Canada which will see the latter export hydrogen from 2025.

The remaining Us-european tensions underline that while Biden is an arch-atlanticis­t, his support for EU nations is not unqualifie­d. Washington and Brussels do not have identical interests, and this complicate­s bilateral ties from time to time.

Moreover, even the attitudes of proeuropea­n Democrats like Biden have grown more complicate­d to Europe as the continent’s integratio­n has deepened. In the economic arena, for instance, the drive towards the European Single Market led to US concerns about whether this would evolve into a “fortress Europe”.

Similarly, the creation of European Monetary Union prompted worries about the dilution of US primacy in the financial sector and macroecono­mic policy. Moreover, in competitio­n policy, the increasing assertiven­ess of the European Commission has periodical­ly raised US concerns about EU overreach.

Renewed hope

Nonetheles­s, there is common recognitio­n across Europe that, taken overall, the Biden team’s approach to the EU has been much more cooperativ­e than conflictua­l. It has stood in sharp contrast to Trump, who said during his presidency that “I think the EU is a foe, what they do to us (the US) in trade”.

So, Biden’s policy is much more in accord with longstandi­ng US policy towards Europe, as embodied in John Kennedy’s 1962 Atlantic Partnershi­p speech.

The core US view for decades was that a united Europe would make future wars in the continent less likely; create a stronger partner for the US in meeting the challenges posed by the Soviet Union and now Russia; and offer a more vibrant market for building transatlan­tic prosperity.

Taken together, this gives the EU renewed hope for the future of transatlan­tic ties at a crucial time, given the growing urgency in Ukraine. The bilateral relationsh­ip will be stabilised further, in coming months, if Washington and Brussels can agree new accords in areas such as critical minerals, steel and aluminium in advance of November’s US presidenti­al election.

 ?? PHOTO: AFP ?? Unexpected­ly, Biden bent in recent days to internatio­nal pressure to allow Ukraine to use Us-made weapons to hit Russian territory for the first time.
PHOTO: AFP Unexpected­ly, Biden bent in recent days to internatio­nal pressure to allow Ukraine to use Us-made weapons to hit Russian territory for the first time.

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