United_Kingdom–United_States_free_trade_agreement

United Kingdom–United States Free Trade Agreement

United Kingdom–United States Free Trade Agreement

British-American tariff lowering law

The United Kingdom-United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States.[1][2] Negotiations began in 2020, but have since stagnated.[3]

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The UK gained the opportunity to independently negotiate trade agreements when it left the European Union as part of Brexit on 31 January 2020, with a transition period until the end of 2020.[4]

History

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Trump Administration

On 28 February 2019, the United States released its negotiating objectives.[10] The United Kingdom released its objectives on 1 March.[11] The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020.[12][13]

In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous United States-European Union agreements.[14]

Biden Administration

In 2022, the Biden Administration made it clear that it was because of the issues with Northern Ireland and the UK regarding Brexit and how it affects the Good Friday Agreement,[15] the US would not further talks about a potential FTA.[16] With the administration of President Joe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states.[17] Regulation of international trade is a federal responsibility under the Commerce Clause of the U.S. Constitution, preventing state agreements from changing customs rules; therefore, the UK has aimed at signing Memorandum of Understanding (MoU) agreements with numerous states. MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies. Former British trade minister Penny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA.[18]

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Trade negotiations ongoing

Following President Joe Biden and UK Prime Minister Rishi Sunak's meeting held in Northern Ireland on the 12th of April 2023, talks of a US-UK free trade agreement are now postponed until at the very least 2025.[35]

In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US.[36] The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers.[37][38] The declaration commits both nations to increase research collaboration in future technologies, such as AI, future 5G and 6G telecoms, quantum, semiconductors and engineering biology.[39] Further, these talks led to a commitment in principle to a new UK-US Data Bridge that facilitates the transfer of data by UK businesses to certified U.S. organizations.[40]

During the signing of the accession of the United Kingdom to CPTPP on the 16th of July 2023, Kemi Badenoch blamed the lack of progress on the UK-US FTA on the change of administration from Donald Trump to Joe Biden after the 2020 election.[41][42]

On 3 October 2023, Biden and Sunak were reported to be preparing a "foundational" trade agreement between the two countries which would be modeled off of the Indo-Pacific Economic Framework. However this agreement will not constitute as a free trade agreement under World Trade Organization rules as the proposals do not contain market access commitments.[43] The proposed partnership aims to cover subjects such as digital trade, labour protections and agriculture.[44] On the same day, Badenoch reiterated that there was "zero" chance of a free trade agreement under President Biden's administration, citing his attitude to such deals.[45] On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned.[46]

Chapters

Areas covered in the FTA and contention points:[47]

  • Trade in Goods
  • Sanitary and Phytosanitary Measures (SPS):
  • Customs and Trade Facilitation
  • Rules of origin
  • Technical Barriers to Trade (TBT)
  • Good Regulatory Practices
  • Transparency, Publication, and Administrative Measures
  • Trade in Services, Including Telecommunications and Financial Services
  • Digital Trade in Goods and Services and Cross-Border Data Flows
  • Investment
  • Intellectual Property
  • Procedural Fairness for Pharmaceuticals and Medical Devices
  • State-Owned and Controlled Enterprises (SOEs)
  • State Subsidies
  • Competition Policy
  • Labour
  • Environment
  • Anti-corruption
  • Trade Remedies
  • Settlement
  • General Provisions
  • Currency

See also

References

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    Pickard, Jim (May 3, 2020). "UK-US trade talks to begin on Tuesday". Financial Times. Archived from the original on 4 May 2020. Retrieved 25 April 2024.
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    Giordano, Chiara (21 January 2021). "We'll fix US economy before signing trade deals, says Biden's Treasury pick Janet Yellen". The Independent. Archived from the original on 26 November 2023. Retrieved 26 November 2023.
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    Eiser, David; McEwen, Nicola; Roy, Graeme (April 7, 2021). "The Trade Policies of Brexit Britain: the Influence of and Impacts on the Devolved Nations" (PDF). Brill Publishers. Archived from the original (PDF) on 14 April 2023. Retrieved 20 February 2024.
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    Powney, Mark (May 20, 2020). "UK-US Free Trade Agreement Negotiations Progress". Business News Wales.
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