UK-US Trade Deal Not Easy: JD Supra

US President Donald Trump has suggested that he and UK Prime Minister Boris Johnson have plans for a “very substantial” trade deal. The UK cannot negotiate a trade deal until after it leaves the European Union, scheduled for October 31. “UK-U.S. preliminary talks on a bilateral free trade agreement (FTA) spanning the last two years, however, have failed to show any meaningful progress and are considered to be deadlocked,” explains Sophie Berner-Eyde, adding that World Trade Organization rules would govern US-UK trade until a deal is finalized. The EU represents 46 percent of the UK’s exports and is the UK’s largest trade partner, representing more than three times the trade with the US. The UK and the US have disagreements: Britain could try to exempt US agricultural goods, with lower standards, as well as health services. Also complicating a deal: varying standards among 50 US states as well as starting negotiations during a presidential election year. The Trump administration could balk at a deal if the UK imposes a digital tax, pursues trade talks with China, and maintains policies to stem climate change and preserve the Iran nuclear deal. Johnson will signal foreign-policy direction with his choice of US ambassador. – YaleGlobal

UK-US Trade Deal Not Easy: JD Supra

Trade deals are easier said than done, and the UK and the UK have deep differences on agricultural goods, health services, China and more
Sophie Berner-Eyde
Monday, July 29, 2019

Read the article from JD Supra about the challenges for a bilateral US-UK trade agreement.

Sophie Berner-Eyde is with Kelley Drye & Warren LLP, based in Brussels.

(Source: Observatory of Economic Complexity, MIT)

Copyright © 2019 JD Supra, LLC

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