US businesses urge UK to agree post-Brexit trade deal with EU for key reason

The global economy is set to experience a major recession due to the coronavirus pandemic, with many businesses facing closures and job losses skyrocketing.  The top US business lobby has said in a series of recommendations issued ahead of the start of US-UK trade talks on Tuesday that a deal between the UK and EU would remove uncertainty in business dealings.

Currently the lack of deal between the two governments is limiting investment flow and may pose risk trade talks with the US.

The lobby also said that US firms have invested more than $750 billion into Britain.

Great Big Lockdown Survey: Tell us what life’s like for you by answering THESE questions

This was in large part to secure access to the EU single market before the Brexit vote removed that option.

Create your own survey at

The group said London should redefine its ties to Brussels before working out trade deals with other countries.

It also said there were opportunities for Britain and the United States to advance global standards in the digital economy, financial services, and emerging technologies.

The business group said eliminating all tariffs would boost the long-term outlook for both Britain and the United States at a time when both economies have been hard hit by the new coronavirus pandemic.

The UK’s GDP is facing a 35 percent contraction due to the lockdown measures put in place to fight the pandemic.

READ MORE: Von der Leyen thanks Boris Johnson for his generosity as UK makes £774million donation

The US business group made a statement that the two governments should work on a deal.

It said: “These negotiations offer a vital opportunity to deepen one of our most successful commercial partnerships and in so doing, help get our economies on the road to recovery.”

Trade in goods between the United States and United Kingdom was valued at $127.1 billion in 2018, with the two sides roughly in balance, while the services trade topped $134.8 billion.

Britain officially left the EU on January 31, and it aims to make an ”ambitious” deal with the US in two weeks of talks according to Prime Minister Boris Johnson.

Vote Leave insider picks out huge EU weakness that’s UK’s big asset [INSIGHT]
Nicola Sturgeon fury: How SNP leader was dubbed ‘mini Godzilla’ [ANALYSIS]
Brexit confession: David Davis’ brutal assessment of Chequers meeting [COMMENT]

It said the two historic allies should work together to strengthen global trade rules and institutions to adapt to the challenges posed by non-market economies such as China.

The chamber recommended that the pair could also lead global efforts to remove trade barriers for critical materials including medicine, medical equipment, and other products necessary to support public health.

The average US tariff on the measures are currently at 3.5 percent, while the average UK tariff is 5.7 percent.

The trade deal should remove the US Section 232 tariffs on imports of steel and aluminium and their derivative products from Britain, and remove corresponding UK retaliatory measures on US imports.

The UK has also seen recommendations from experts to not repeat austerity after the coronavirus pandemic passes.

Robert Skidelsky, writing in the New Statesman, said that artificial limits on borrowing must be scrapping for the economy to recover.

He wrote: “Contrary to Thatcherite wisdom, there are ‘essential’ goods and services that a community needs, most of which have to be ‘home grown.’

“The crucial ones are transport infrastructure, health and education services, and social housing.

“These should never be run down, or forced to rely on unreliable foreign sources.”

Source: Read Full Article