Are the US and UK Currently Negotiating a Trade Deal Following Brexit?
The question of a trade deal between the United States (US) and the United Kingdom (UK) following Brexit has been a topic of much discussion and misinformation. Despite several claims of ongoing negotiations and deals, the reality is quite different.
No Current Trade Agreement
It is important to clarify that there is no current trade agreement between the UK and the US. Negotiations, which started in May 2020, have been stagnant since October 2020. The UK government has made it clear that there are currently no plans for further negotiations. These prolonged negotiations have been a subject of scrutiny and criticism, particularly given the context of the UK's decision to leave the European Union (EU).
The US Perspective
One perspective often cited is that the US is trying to sell "old crap" that they can't get rid of anywhere else, implying that the UK is in a unique position to enter into a favorable trade deal. However, this perspective overlooks the underlying economic realities. The US appears to have little interest in entering into a trade deal with the UK at the current time, as it is believed that the UK has limited products or services that are essential to the US market.
Myths Surrounding Brexit and Trade Deals
Another myth surrounds the idea that the UK, post-Brexit, is somehow missing out on global trade opportunities. Critics argue that the UK has cut itself off from trade with the EU, which is the world's largest economic bloc. However, this is not entirely accurate. The UK government has actively sought to forge new trade deals with countries around the world, including the US.
Historical Context: Trade Deals and EU Membership
When the UK was an EU member, it was actually banned from negotiating its own trade deals. The EU's trade policies and agreements were binding for all member states. This restriction was a significant factor in the UK's decision to leave the EU. Post-Brexit, the UK is free to negotiate its own trade deals, which is seen as a positive development by many.
Stalled Negotiations
While there have been sporadic reports of negotiations and plans, such as the "historic trade agreement" set to be signed in September 2019 according to a Daily Express article, these have not materialized. The current government remains skeptical about pursuing a US-UK trade deal, largely due to the Northern Ireland protocol and the lack of urgency from the US side.
Conclusion
The situation surrounding a potential US-UK trade deal is complex and often misunderstood. While there have been some discussions and initial optimism, the reality is that there are no ongoing negotiations, and no immediate plans for a deal in the near future. The UK government's stance is clear: there is no timetable for resolving the US-UK trade dispute, and the focus remains on broader global trade opportunities.
Recommendations
For businesses and entities interested in trade between the UK and the US, it is essential to stay informed about current trade policies and agreements. Consult with expert advisors or trade organizations to navigate the complexities of the post-Brexit landscape.