U.S. is preparing for trade talks with the UK after Brexit

The US aim in negotiations with the UK is to address both tariff and non-tariff barriers and to achieve free, fair, and reciprocal trade.

The UK is currently prohibited from negotiating trade deals with other countries until after it leaves the EU. However, the U.S. is starting to prepare for trade talks with the UK after Brexit.

As stated in U.S. Federal Register on Friday, November 16, 2018, the U.S. has been seeking comments in order to develop their negotiating positions:

Request for Comments on Negotiating Objectives for a U.S.-United Kingdom Trade Agreement

On October 16, 2018, the United States Trade Representative notified Congress of the Administration’s intention to enter into negotiations with the United Kingdom (UK) for a U.S.-UK Trade Agreement after the UK has exited the European Union on March 29, 2019. The Office of the United States Trade Representative (USTR) is seeking public comments on a proposed U.S.-UK Trade Agreement, including U.S. interests and priorities, in order to develop U.S. negotiating positions.

The USTR aim in negotiations with the UK is to address both tariff and non-tariff barriers and to achieve free, fair, and reciprocal trade.

Response

It is understood that more than 100 comments have been submitted by lobby groups to the USTR to help the U.S. prepare for trade talks. As a result, there will be some challenges for the U.K. due to what the lobby groups are looking to achieve, for example:

The meat lobby wants to sell growth hormone-fed beef into the U.K. market. Growth hormone-fed beef is currently banned in the E.U. and the UK.

Farming groups are demanding any deal should relax current E.U. / U.K. rules governing genetically modified crops, antibiotics in meats, pesticides and herbicides.

Drugs companies want changes to the NHS drugs approval process to allow the purchase of more U.S. drugs.

Mutual recognition agreements

There have been some recent agreements between the USTR and the UK, but these are "mutual recognition agreements" and not free trade agreements. The USTR have stated the following:

USTR Signs Wine and Distilled Spirits Continuity Agreements with the U.K.

Washington, D.C. – On January 31, 2019, Ambassador Gregg Doud, USTR Chief Agricultural Negotiator, and Ambassador Kim Darroch, United Kingdom (UK) Ambassador to the United States, signed two agreements covering wine and distilled spirits today to ensure there is no disruption in trade of these products between the United States and the UK when the UK leaves the European Union (EU). Currently the United States has agreements on wine and distilled spirits with the European Union which cover trade with the UK by virtue of its membership in the EU.

The U.S.-UK agreement on trade in wine, which includes commitments regarding winemaking practices and labeling requirements, will ensure market continuity for bilateral wine trade. The UK was the fourth largest export market for U.S. wine products in 2017, with a value of $227 million.

The U.S.-UK agreement on the mutual recognition of certain distilled spirits/spirits drinks will continue the recognition of the names Scotch whisky, Irish whisky, Tennessee whisky, Bourbon whisky, and Bourbon in bilateral trade following the UK’s exit from the EU. The UK was the top export market for U.S. distilled spirits in 2017, totaling $187 million.

USTR Signs Mutual Recognition Agreements with the United Kingdom

Washington, D.C. – On February 14, 2019, Deputy U.S. Trade Representative C.J. Mahoney and Ambassador Kim Darroch, United Kingdom (UK) Ambassador to the United States, signed two mutual recognition agreements (MRAs) covering telecom equipment, electro-magnetic compatibility (EMC) for information and communications technology products, pharmaceutical good manufacturing practice (GMP) inspections, and marine equipment. These MRAs with the UK replicate substantive provisions of existing MRAs between the United States and the European Union for these sectors and will ensure that U.S.-UK trade in these product sectors is not disrupted when the UK leaves the European Union. U.S. exports to the UK of products covered by these agreements exceeded $5 billion in 2018.

As part of the U.S.-UK Trade and Investment Working Group, the United States and the United Kingdom are working to ensure commercial continuity for UK and U.S. businesses, workers, and consumers as the UK leaves the EU.

If you would like more details, please call +44 (0) 118 932 8447 or email info@icsglobalservices.co.uk

ICS Global Services Limited