EU is sidelined as two economic world powers (USA & UK) talk business

The UK-US post-Brexit trade talks start today

An enthusiastic US President and a US-born UK Prime Minister are fully behind this

It’s been a little delayed thanks to the Coronavirus but finally the UK-US trade talks kick off properly today.

On February 27 the UK’s International Trade Secretary Liz Truss met US Trade Representative Robert Lighthizer in London. They held preliminary talks and reiterated their commitment to get on with negotiating a free trade agreement and improving the bilateral trading relationship between the US and the UK.

Since then both sides have published their basic negotiating positions. On Sunday the Department for International Trade (DIT) said:

“More trade is essential if the UK is to overcome the unprecedented economic challenge posed by Covid-19. We want an agreement benefitting every region and nation of the UK.”

Brexit Facts4EU.Org Summary

UK-US trade in goods (data for 2019)

The US is the UK’s largest customer for the UK’s goods
The UK is the 5th largest customer for the USA’s goods
It is the biggest in Europe for the USA

UK-US trade in goods AND services (data for 2018)

The USA buys more than twice as much from the UK as our next biggest customer (Germany)
The USA bought £123.5bn of goods and services from the UK in 2018
Germany bought just £56.7bn

The UK had a total trade surplus (goods & services) of £45.4bn with the USA in 2018
The UK had a total DEFICIT with Germany of -£22.6 bn in 2018

What happens today?

Early this afternoon a series of video conferences will start between many dozens of trade negotiators from the UK’s Dept for International Trade and from the USA’s Office of the Trade Representative and the U.S. Department of Commerce. The first round of talks are likely to continue into next week.

Back in February the new Secretary of State for International Trade, the Rt Hon Liz Truss MP, commented on her meeting with the US Trade Representative when he visited London, saying:

“Securing an ambitious free trade agreement with the US is one of my top priorities, delivering benefits to towns across the whole of the UK from Edinburgh to Enniskillen.
“We want an agreement that benefits both small businesses and entrepreneurs and every industry, from agriculture and manufacturing to professional and business services.
“The UK stands ready to negotiate a highly ambitious free trade agreement with our biggest trading partner and will publish our negotiation objectives very soon.”

The formal opening positions

Both sides have now published their opening positions, which readers can access using the following links:-

Here's Ambassador 'Woody' Johnson today:-

Today the talks on the FTA begin. If we do it right jobs & prosperity will follow! 🇺🇸🇬🇧 pic.twitter.com/jrtZZk4TL6
— Ambassador Johnson (@USAmbUK) May 5, 2020

The United Kingdom compared to the anti-Trump ideologues of the EU

When President Trump is contemplating the UK-US trade deal in the coming months, he may wish to remember one thing. The UK is not the only country on the receiving end of a massive trade deficit with Germany and the rest of the EU.

US merchandise trade deficit with the 27 EU countries : -$184 BILLION in 2019
This trade deficit has been growing every year and continues to do so

Source: International Trade Administration of the US Dept of Commerce, Mar 2020

As we have reported on many previous occasions, this massive deficit has always been down to the other major EU economies, not to the UK. Now that the EU has started reporting on statistics for previous years as if the UK had never been a part of the EU, these facts are becoming ever starker.

Observations

We are sure that many elements of the mainstream media will take a cynical approach to this positive development today. We don't. We prefer to be upbeat about two countries who each believe in free markets and in the competitive instinct to succeed.

The United States of America is the United Kingdom’s largest market by far. And the United Kingdom is a very significant market for the USA – much more than for any EU country, including Germany.

The USA is more than twice as important a customer to the UK as its 2nd largest customer, Germany. Added to this, the UK has a deficit with Germany every year. The Germans sell us far more than we sell them.

Mr President, you know who America’s real friends are

We read “The President’s 2020 Trade Agenda and Annual Report” published on Feb 28. We noted how this report put the United Kingdom above the European Union :-

“United Kingdom - As part of a trade agreement with the UK, the United States aims to achieve a fairer and deeper trade relationship with the UK by addressing certain tariff and non-tariff barriers and agreeing on high-standard rules.
“European Union - For many years, U.S. businesses have been at a disadvantage in doing business in the EU. In a fair trade agreement with the European Union, the United States seeks to eliminate EU barriers to its markets and seeks a more balanced trade relationship.”

We could not agree more Mr President.
Forget the EU for a moment and let’s do a deal between two old friends – the USA and the UK.

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[ Sources: UK Dept for International Trade | Office of the United States Trade Representative | Office of Trade and Economic Analysis for the U.S. Department of Commerce | U.S. International Trade Administration ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Tues 05 May 2020

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Reader Comments 18

11. Concerned , Tuesday, May 05, 2020, 12:22:

1) W. Alkaway Essex UK
Way to go. I could not agree more. However, there is not so small problem that we have outsourced almost all of our production and I have to say patented stuff out to countries that cannot stand us. The logic of such stupidity defeats me. So yes buy American, UK and also from the Commonwealth and other friendly nations and ignore the rest. I have been trying my best to do this for years even before the momentous and joyous referendum result in the UK.

12. Concerned , Tuesday, May 05, 2020, 12:25:

5. Jeremy P, I wish your company every success as it's owners have their heads screwed on correctly.

13. Brexiter Braintree Essex , Tuesday, May 05, 2020, 15:24:

Has the USA made trade talks between the UK and them dependant on the UK surrendering its sovereign
fishing waters?no thought not.How about the talks with Commonwealth countries,Canada,New Zealand,Australia,no not heard a whisper about access to our fishing grounds as conditions for trade agreements.EU and Barnier take note,the UK as a global trading nation can source everything it requires from around the world.We don't need to sell our sovereignty and fishing industry to get trade deals.How are EU wine,meat,dairy producers going to fare if they lose the UK market? The truth is the UK doesn't need the EU as much as the EU needs us.So if you want a mutually beneficial trade deal between the UK and EU cut the posturing and start meaningful negotiations, or else your remaining 27 member countries will be considerably poorer.

14. Guy Rosher , Tuesday, May 05, 2020, 15:31:

Peter H unlikely when you consider the economic impact on GDP of WTO and the studies of the benefit of a US / UK free trade deal believe me they don’t in any way cancel each other out

15. Barbara Jell , Tuesday, May 05, 2020, 16:44:

Hurray for 'The Donald!' I love that man. If only he had been in charge of Brexit, we would have left years ago! The knives are really out for him at the moment, but he has got my all support and I would vote for him any day. Pity he's not our Prime Minister.

16. Barbara Jell , Tuesday, May 05, 2020, 16:53:

Comment 4 - There's always ONE isn't there! What a misery. Another Remainer has strayed into Leave territory . Great answer No 7

17. William Pentelow , Tuesday, May 05, 2020, 19:04:

To Guy Rosher expand please and show some proof.
Oh you cant?

18. g8pvi , Friday, May 08, 2020, 15:26:

Love the dig at the EUSSR abut "Like minded Democracies"!

18 comments, page 2 of 2

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