UK – US Free Trade Agreement Negotiations
Whether you were leave or remain I think that it is important to welcome the opportunities that we now have as a result of leaving the European Union.
As of 5th May the Secretary of State for International Trade Liz Truss publicly launched free trade negotiations with the US.
The current round of negotiations will continue for the next 2 weeks. They will be carried out by video conference, ensuring that talks can progress during the COVID-19 pandemic. Talks will continue remotely until it is safe to conduct talks in person.
An increase in trade is essential if the UK is to overcome the unprecedented economic challenge posed by COVID-19 and new trade agreements are an important part of our long-term economic recovery. Government analysis shows that US trade deal with the US could lead to a £15 billion increase in trade, benefit every region and nation of the UK with a majority of sectors set to benefit including agriculture, automotive, consumer goods such as ceramics and service industries.
The free trade agreement will aim to secure a far-reaching, comprehensive and mutually beneficial tariff reductions reducing the £493 million worth of tariffs levied on UK exports to the US each year. It will give increased access to the US market for UK businesses, and lower prices and increase choice for UK consumers. The free trade agreement will also enable the UK to protect its interests when threatened by unexpected surges in imports of goods or unfair trading practices, while making the appropriate commitments to transparency, due process and proportionate use of trade remedies. It will also remove trade distorting tariffs.
During my time as an MP I have had various correspondence from constituents who have expressed concern at the prospect of a UK – US trade deal. The main concern is about food and safety standards. We have some of the best food and safety standards of anywhere in the world. Let me assure you that signing a free trade deal with the US will not see our standards drop and it will not see the government drop its commitments to sustainability and climate change.
The Secretary of State has said:
‘Our team of negotiators will drive a hard bargain for all British industries and people. We are committed to our red lines – the NHS, the price it pays for drugs and its services are not for sale. There will be no compromise on high environmental protection, animal welfare and food standards. It is in the interests of both the UK and US to reach an agreement, but we will walk away from the negotiating table if the right deal is not on offer’
I am very pleased to read your blog about the importance to you of food and health product standards (not JUST food ...for more chemicals we ban in shampoos, beauty treatments etc ).
ReplyDeleteOne of the key concerns as I understand it is not that we will lower our own standards regarding our own production but that we will be under pressure in this negotiation to accept the import of foods/products which will be produced under US lower standards. This has two possible results...we may not be aware of these lower standards in imported products, for instamce US producers do not have to state if products are tested on animals, and so we may be unwittingly being sold poorer, more dangerous and unethical goods.
Secondly, these products will be imported as part of deal which allows us to export tariff free to the US. But the scale of production is such that US products will almost inevitably be cheaper. Now while that may seem good for the consumer, I refer my earlier comment about US standards. And if the products are cheaper, it will threaten the livelihoods of UK producers (of chicken for instance).
But a crucial issue surrounding the whole deal is that the US wants to drive a exclusivity bargain...we will not be able to trade with partners which the US sees as unfit or un-American. This will obviously be swapping EU control of trading partners (where at least we had a voice), with US control, where we have none.
There are many more issues at stake here than simply a boost to an economy (which we could actually achieve by striking a proper deal with the EU).