UK warned it faces ‘big choice’ as it prepares for US trade talks
Written by News on 02/03/2020
Boris Johnson has been warned he faces a “big choice” between following EU or US standards – as the government reveals what it wants from talks with Donald Trump.
Ministers will on Monday set out what they want – and don’t want – in a US-UK trade deal, with talks between the two sides expected to begin this month.
Monday will also see the first round of trade talks between the UK and the EU’s negotiating teams in Brussels, following Britain’s exit from the bloc in January and entry into an 11-month Brexit transition period.
Trade expert David Henig, the UK director of the European Centre for International Political Economy, warned the government would face a difficult decision as it conducts parallel trade negotiations with the US and EU.
He told Sky News: “Both the EU and US would like us to adopt their food safety rules – we can’t adopt both of them as the EU doesn’t allow certain US food in.
“We’re going to have to make a choice there between either those two, or perhaps we’ll adopt our own and go with that.
“That’s a big choice. We also have to choose in various regulatory areas whether we go with an EU approach or a US approach.
“The more we go with one against the other, the more trade barriers are in place.”
Mr Henig added that a US trade deal – forecast to lead to a 0.1% gain for the UK economy – would come “nowhere close” to making up for potential losses from a weaker EU trading relationship than the UK currently holds.
Government analysis also being published on Monday says the conclusion of a deal with America will see the UK economy enjoy a £3.4bn boost due to a £15.3bn increase in trade between the two countries.
The prime minister said: “We have the best negotiators in the business and of course, we’re going to drive a hard bargain to boost British industry.
“Trading Scottish smoked salmon for Stetson hats, we will deliver lower prices and more choice for our shoppers.
“Most importantly, this transatlantic trade deal will reflect the unique closeness of our two great nations.”
Critics of a proposed trade deal between the UK and America have cited fears the NHS could be opened up to US health care providers and drug companies, while British farmers could be harmed by imports of cheaper US food produced to lower standards.
However, the government has said its negotiating objectives will set out that any future agreement must protect the NHS and uphold the UK’s standards on food safety and animal welfare.
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Manufacturers of ceramics, cars and food and drink will be among the biggest winners from securing tariff-free access to the US market, according to the government.
Architects and lawyers are also expected to benefit, while it is claimed Scotland, the North East and the Midlands will benefit the most from a free-trade agreement.
Trade talks will alternate between the UK and US, with the negotiations being overseen by Crawford Falconer, the Department for International Trade’s chief negotiator.
Following the publication of the US trade deal negotiating objectives, ministers will “shortly” set out negotiating objectives for agreements with Australia, Japan and New Zealand.
The government aims for 80% of total UK external trade to be covered by free trade agreements by 2022.
Business groups welcomed the opening of trade talks with the US.
But Barry Gardiner MP, shadow secretary of state for international trade, said: “This is a government that has sought, at every opportunity, to resist efforts to lock in our high standards and to ensure robust protections for our NHS.
“Their false promises are meaningless – they have said they won’t undercut our food standards while briefing that chlorinated chicken and hormone-fed beef are perfectly acceptable.
“That is why there must be a full and proper scrutiny process for this and all trade agreements.”
The Brexit transition period, which will end on 31 December this year, maintains the status quo of EU membership for the UK.
(c) Sky News 2020: UK warned it faces ‘big choice’ as it prepares for US trade talks
