US, Britain launch talks on post-Brexit trade deal

The United States and Britain launched trade negotiations by video conference yesterday following the UK’s exit from the European Union, as both allies struggle with the effects of the coronavirus pandemic and aim to shore up domestic supply chains.

The talks will be Washington’s first major new trade negotiation of 2020, and take place at the same time as London works out trade terms with the EU, with a year-end deadline. US Trade Representative Robert Lighthizer has said little publicly about the UK trade talks since publishing a sweeping set of objectives more than a year ago that sought full access for US agricultural products and reduced tariffs for US manufactured goods.

Agriculture is expected to be among the thorniest issues. Prime Minister Boris Johnson has vowed to drive a “hard bargain” and UK International Trade Secretary Liz Truss has said Britain would not diminish its food safety standards.

The top US business lobby, the US Chamber of Commerce, has urged the two historic allies to eliminate all tariffs, saying that would boost the long-term outlook for both countries at a time when their economies have been hard hit by shutdowns aimed at curbing the spread of the coronavirus.

The chamber said the two countries also could strengthen global trade rules.

Trade in goods between the United States and the UK was US$127.1 billion in 2018, and roughly in balance, while the services trade topped US$134.8 billion. Britain is the seventh-largest US goods trading partner.

Ted Bromund, a senior research fellow in Anglo-American relations at the Heritage Foundation, a conservative think-tank in Washington, said one area ripe for tariff reduction was automotive trade, Britain’s largest export sector to the United States.

“There are lots of areas — digital trade, visa liberalization, financial services — but if you can’t agree to essentially get rid of tariffs on visible trade, I’m not sure it’s a free trade agreement,” Bromund said.

The talks, expected to last two weeks initially, will start with a videoconference call on Tuesday, the UK embassy said. Further rounds will take place approximately every six weeks and will be carried out remotely until it is safe to travel.