U.K. Prime Minister Keir Starmer recently visited Washington to discuss the U.S.-U.K. trade deal, but unfortunately, all trade negotiations under the Biden-Harris administration have come to a halt. Unlike the previous administration, the current one has not sought Trade Promotion Authority from Congress, which is essential to kick off formal trade talks with any nation. This change in approach has resulted in the U.S. facing significant trade barriers that are not benefitting the country in any tangible manner.
During the Trump administration, there were several successful bilateral trade agreements negotiated, with plans for more in the works, including partnerships with Switzerland and Kenya that were near completion. Among all these agreements, the U.S.-U.K. trade deal was seen as the most strategically important. President Trump had highlighted the potential for increased trade with the U.K. following such an agreement. Frustration is now building on both sides as this deal has not materialized yet.
Representative Jason Smith, chair of the House Ways and Means Committee, expressed his disappointment over the absence of a free trade agreement with the UK. He emphasized the importance of trade in the U.S. economy and gave examples of the necessity of trade with other countries. Similarly, British Labour members have shown discontent over the lack of a trade deal with the U.S., with some suggesting a potential Labour government would pursue a free trade agreement within the first 100 days.
Despite the enthusiasm for a U.S.-U.K. trade deal, it seems unlikely to happen under the current administration given their protectionist policies. However, the U.S. is a significant investor in the U.K., and the benefits of a trade agreement are clear, especially post-Brexit. One way forward could be for the U.K. to join the USMCA, a deal negotiated under the Trump administration and considered a “gold standard” in free trade agreements.
Joining the USMCA could benefit both countries significantly, and as an already-established agreement, admission to the USMCA would require minimal negotiations. Looking ahead, regardless of the current political climate, there is an urgent need to consider expanding the USMCA to include the U.K. for the mutual benefit of both nations.
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