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David Henig @DavidHenigUK
, 11 tweets, 4 min read Read on Twitter
We need to talk about US trade policy and the impact on the UK, now we have a much clearer sense of where they're going in the next few years. Let's start with this FT story about a clause in the new NAFTA - ft.com/content/95e80a… 1/
Quite a lot of hardline Brexit supporters have suggested that the US will place fewer conditions on a trade deal than the EU do as members, or indeed in a future agreement. This is possible, but it doesn't mean unconditional 2/
The use of trade agreements as a political tool is not new in the US (or in other major powers like the EU). Food standards one of a number of long-time issues between the two - see 50 pages in this report on EU barriers ustr.gov/sites/default/… 3/
What is new in the US is the way the President has now firmly set the agenda against trade liberalisation, and is starting to build support - see this for example from yesterday's Sunday Times @IrwinStelzer column 4/
The tone of the article (also at myemail.constantcontact.com/Globalization-…) is interesting - it is justifying increased protectionism, on the grounds it could be worse, from an economist said to be close to Rupert Murdoch 5/
So where does this leave the UK? We are also putting up economic barriers by leaving the EU, amount as yet unknown, but advocates hope the global barriers we face may reduce. However, NAFTA 2, the USMCA, probably increases barriers compared to NAFTA 1 6/ piie.com/blogs/trade-in…
On this precedent the UK can't realistically expect to enjoy improved access to the US market from a trade agreement - it might though stop us getting a worse deal from increased tariffs on e.g. steel and cars, and whatever else comes in the future 7/
We'd almost certainly have to change policy on other areas including food regulations and leaving the European voluntary standards community for a US trade deal as well - this could have a hit on our EU trade 8/
Given this direction of travel do we really want to pursue a trade agreement with the US? One that will prevent close trade agreements with other countries? It is at the very least a question that requires answers, and preferably analysis, from Government 9/
US trade policy is headed to be more divisive globally than before. The WTO is under threat. The UK's response to that needs to be carefully calibrated, and so far we don't see the signs of that 10/ ends
PS Rightly pointed out by @DGWilkinson that not getting any increased market access from a US trade deal is probably a bit too sweeping - more likely it won't be much, but we could be surprised especially if we sign up to US approaches in various areas
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