Prime Minister Rutte and Foreign Secretary Hoekstra will meet US President Biden and his Foreign Secretary Anthony Blinken at the White House today. “The ‘America First points’ in Biden’s economic policy are hot topics,” says US correspondent Jan Postma.
Although Biden is committed to international cooperation, has looked outwards and, unlike his predecessor Trump, attaches great value to NATO, his economic policy has unmistakable protectionist traits. The Inflation Reduction Act (IRA) is one of them. Biden will have to defend him against Rutte, even as he is walking a tightrope with a Republican majority in the House of Representatives. Biden will have to navigate good relations with his European allies and US economic interests.
IRA and chips
Under the Inflation Reduction Act, the US government sprinkles billions in subsidies to give its industry a green boost. Europe fears unfair competition at best and an outflow of European companies to the United States at worst.
Even in the White House there is sparring from a political point of view. With ASML, the Netherlands is a global player in the field of manufacturing highly advanced, and therefore globally in demand, chips. China needs chips, chip technology and chip machines, the United States wants to prevent China from getting them.
‘ASML is also on the agenda. The United States is putting pressure on the Netherlands, but the Netherlands does not just sign the cross. ASML is a global player, we can have this conversation with confidence. The United States wants to prevent China from making chips that are too smart, for example for weapons, but the Dutch government and the ASML have other interests.’
Trade War
According to political journalist Sophie van Leeuwen, despite Biden’s “outward look,” “the trade war is still on the table, that game isn’t over yet.” ‘This visit is also under great tension, also due to the war in Ukraine. Europe needs heavy weapons right now, so Europe is also coming to the US with a wish list. Biden’s list is clear, he looks at ASML’s technology export.’
According to Van Leeuwen, Brussels keeps a close eye on Dutch travel. ‘Also because Holland is the most Atlantic partner of the US in the European Union, Brussels views the visit with suspicion. What are those two trying to get away with?’
Wrong channel
According to CDA member of parliament Mustafa Amhaouch, Rutte and Hoekstra may be in Washington because ASML is a Dutch company, but “a lot of what’s in those cars” comes from Germany or other European suppliers. “It’s a bit strange that this technology, these heavy economic interests, are now passing through this channel. The Inflation Reduction Act is a big concern, you see the protectionism going on there. Europe is becoming a serious player now.’
‘The media talk about China versus America, but they can no longer ignore Europe. I expect a polite conversation in the Oval Office, but with a clear message: that this also involves serious economic interests for Europe’.
According to Van Leeuwen, Brussels is worried: ‘There is a warning: ‘beware of this geopolitical game’. The Netherlands has a unique lever – ASML – don’t just give it away in exchange for arms or American concessions to the IRA. If we stop making those chip machines here, others will pick it up.”
According to Van Leeuwen, the EU thinks mainly from the point of view of strategic autonomy and is therefore looking at possible billion-dollar subsidies from European industries. Europe wants to focus on “self-regulation” and no longer give away technology or export and thus lose a leading position. “This must be the answer and not a solo action by Mark Rutte.”
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
