JAKARTA (TheInsiderStories) – United States (US) president, Donald Trump encouraged the United Kingdom (UK) to walk away from any negotiations with the European Union (EU), if they are unable to secure a favorable Brexit deal, The Sunday Times reported.
He also talked up the possibility of a post-Brexit trade deal between Washington and London. UK is set to leave the European Union (EU) in Oct. 31. For the US, this rupture presents an unprecedented opportunity to strike a trade deal with its transatlantic partner.
The US secretary of state, Mike Pompeo, has been reiterating the White House’ stance on a US – Britain trade deal, saying he regards it as a priority but declining to say whether US will look to do a deal with the EU or the UK first. One of the world largest economy also sees Brexit as an opportunity to renegotiate the relationship in its favor and a chance to boost American jobs and economic growth.
The US is clear that it wants the UK to stop practices that unfairly decrease US market access opportunities and scrap regulations that distort agricultural markets to the detriment of the US, according to White House negotiating objectives released on February.
At that time, two countries announced that they had signed a Mutual Recognition Agreement (MRA) on Conformity Assessment. Trump has welcomed that agreement that he said would help boost trade between the two countries “very, very substantially” after Brexit.
He revealed the trade links had been strengthened by the signing of the deal, which will see the terms of a similar agreement between the EU and the US continue to apply to the UK after Brexit.
He described the UK and US as having a “very good trading relationship”, despite having previously warned that Theresa May’ Brexit deal could harm business links. The deal continues the terms of the EU – US MRA after Brexit, allowing goods made in the UK to be sold in the America and vice versa, with less bureaucracy for manufacturers and exporters.
US – British’ trade in the sectors covered by the deal is worth up to GBP12.8 billion (US$10.11 billion), the government said, including exports of GBP8.9 billion, most of them in the pharmaceutical industry. Other sectors covered include tech and telecoms.
“So with the UK, we’re continuing our trade and we’re going to actually be increasing it very substantially as time goes by. We expect that the UK will be very, very substantially increased as it relates to trade with the United States – the relationship there is very good,” Trump tweet in his official Twitter after the deal.
Although uncertainty about Brexit persists, London remains eager to prioritize a US-UK free trade agreement when it eventually leaves the EU. Coupled with similar agreements the UK has signed with Australia and New Zealand, the US deal shows Britain is entirely capable of negotiating its own trade pacts.
As the now-abandoned Transatlantic Trade and Investment Partnership negotiations between the US and the EU showed, the organization prefers to harmonize the mutual recognition. It seeks to entrench Europe’ expensive standards internationally.
This is great for the big industries of today, but terrible for new companies that have to meet standards designed by their larger competitors. The continuation of the US – UK agreement shows the way to an even wider, more ambitious Anglo-American free-trade area that would set a new gold standard for trade deals — one with zero tariffs and based on mutual recognition.
Written by Lexy Nantu, Email: email@example.com