“Conceptual Contradiction”: What Challenges May London Face in Trade Negotiations with Washington

On May 5, trade negotiations between the United Kingdom and the United States will begin, and British Foreign Minister Liz Trass and US trade representative Robert Lighthizer will take part in them. As Liz Trass previously told the British media, the talks will be held in video mode due to restrictions associated with the coronavirus pandemic.

The first round of dialogue will last two weeks, the next stages will be held every six weeks until it is possible to work out terms of a trade agreement acceptable to both parties.

“You have no doubt: at the negotiations that start at the beginning of next week, we will strongly insist on the option of a deal that will benefit both individuals and enterprises in each region and every country in the United Kingdom,” quoted British Minister Truss as saying Express

• Liz trass
• Reuters
• © Henry Nicholls

As the minister noted, the British government wants to conclude an important deal that will open up new opportunities for British business and help attract investment.

“The United States is our largest trading partner. Increasing transatlantic trade exchanges can help our economies cope with the difficulties arising from the coronavirus, ”said Truss.

Earlier, the upcoming negotiations with reference to sources familiar with the situation, said the British tabloid The Sun. According to the publication, the White House insisted on the early start of negotiations, while London was in no hurry with the start of a trade dialogue.

Grand Trade Agreement

According to the British cabinet, the deal between the United States and the United Kingdom will provide the national economy with an increase of £ 3.4 billion. A trade agreement will especially benefit Scotland, as well as the northeastern regions of England, according to London. In addition, the deal with Washington should stimulate British industry - such hope was previously expressed by Boris Johnson.

About the readiness to conclude a major trade agreement with Britain after she leaves the European Union, US President Donald Trump announced back in June 2019, in anticipation of his visit to the United Kingdom. The politician gave an interview to The Sunday Times, in which he said that the UK has the potential to become a trading partner of the United States.

• Donald Trump's visit to the UK
• Reuters
• © Simon Dawson

Speaking at a press conference following negotiations with the British Prime Minister (then Teresa May. - RT ), Trump said the United States would enter into an “outstanding” trade deal with Britain after the kingdom left the European Union.

At the end of 2019, the head of the White House once again recalled plans to conclude a major trade agreement with London. The politician said this in a congratulatory tweet on the victory of the British Conservative Party in the early parliamentary elections.

“Congratulations to Boris Johnson on his magnificent VICTORY! Great Britain and the United States will now be able to enter into a grand new Trade Agreement after Brexit. This deal can become much larger and more profitable than any of those that could be concluded with the EU. Long live Boris! ” - Trump wrote on his Twitter.

Congratulations to Boris Johnson on his great WIN! Britain and the United States will now be free to strike a massive new Trade Deal after BREXIT. This deal has the potential to be far bigger and more lucrative than any deal that could be made with the EU Celebrate Boris!

According to some British media, negotiations with the US authorities on a trade agreement could strengthen Britain’s position in negotiations with the EU on the conditions of Brexit.

As Aleksey Portansky, a professor at the Higher School of Economics, leading researcher at IMEMO RAS, noted in a conversation with RT, formally starting a dialogue on a deal with Washington could really give London additional leverage in negotiations with Brussels. However, it is not necessary to say that Washington and London will be able to conclude the US-British agreement easily, the expert believes.

“Despite Trump's promises, Washington just can't give London a“ great ”bargain. Negotiations with the American side will also be difficult for the British authorities, because in the US there are influential forces that will try to get favorable conditions for themselves. In general, the UK faces a difficult task - to negotiate on two fronts, ”said the expert.

As Portansky explained, American companies will try to make Britain a new market for their products and negotiations will not be easy for London.

A similar point of view is shared by the head of the Center for Political Integration of the Institute of Europe of the Russian Academy of Sciences Lyudmila Babynina. According to the expert, it is not worth talking about the fact that trade negotiations with the United States will be a trump card for London in its relations with the EU.

“Rather, we need to say that the EU will have new concerns about how to negotiate with the UK, especially if it makes US concessions. And it is obvious that Washington will try to conclude a bargain for itself. The question is whether London will be able to get between the US and the EU in such a way as to comply with its own interests, ”the expert said in an interview with RT.

Between Scylla and Charybdis

Recall, the UK officially left the European Union on January 31, 2020. However, this event did not put an end to the difficult "divorce" of the United Kingdom from the EU. Until the end of the transition period, the parties have yet to agree on how their relationship will be built on a variety of issues - from the economy to security. During the transition period, London and Brussels must sign a special cooperation agreement, where new rules of interaction will be fixed.

The transition period will last until December 31, 2020. For this period, Great Britain retains all the rights of an EU member state, with the exception of voting rights in pan-European authorities. If the parties understand that they do not have time to agree on the terms of cooperation, the transition period may be extended.

• Brexit Supporters with Posters
• Reuters
• © Henry Nicholls

However, despite the fact that before the end of the transition period even more than six months, Brussels already now accuses London of "insufficient involvement" in the negotiations. This was announced in April by EU chief negotiator Michel Barnier, speaking at a briefing after the second round of negotiations with the British side.

“The UK cannot impose such a tight deadline for negotiations and not provide any progress on a number of issues important to the EU,” the official said, explaining that if there is no progress by June, Brussels “will have reason to worry about the possible outcome of these negotiations.”

“Urgency is higher than ever. Given only about eight months, ”said Barnier.

The European official accused the British side of refusing to conduct a constructive dialogue on a number of important issues, including the creation of balanced conditions for doing business, the free movement of people and goods. Barnier also noted that London is abandoning the idea of ​​taking a respite from the negotiations.

As noted by Alexei Portansky, the likelihood that the parties do not have time to agree on the terms of the agreement before the end of the year exists.

“There is really little time, especially when you consider that today the EU accounts for about 40% of UK trade. It is extremely important for London to maintain trade with the European Union and at the same time to obtain favorable conditions from the USA, ”the expert explained.

According to Lyudmila Babynina, London really cannot postpone negotiations on trade deals with the EU and the USA to a later date.

“It will not be easy to find a compromise, and the negotiations that London will conduct in parallel with the EU and the US will come into conceptual conflict. The fact is that Washington insists that London adopt American standards, while the European Union demands that European ones be preserved. We are talking not only about technical standards, but also about standards in the field of employment, the environment, ”the expert noted.

As Babynina explained, London would like to leave its own standards, and argues its position by saying that British standards are no less stringent than European ones.

“However, the EU is still afraid of unfair competition from the UK,” said the expert.

• Boris Johnson
• Reuters
• © Frank Augstein / Pool

At the same time, Great Britain will not be able to accept both European and American standards, since they differ significantly. We are talking about different approaches to phytosanitary safety, and the permissibility of the production of genetically modified products, and much more, Lyudmila Babynina explained.

“Naturally, the closer the standards of the two sides, the easier access to each other's market. But it should be noted that the United States is unlikely to negotiate with Britain as an equal partner. Rather, the Americans will simply offer Britain to make a choice between themselves and the EU. Initially, Great Britain withdrew from the EU in order to increase trade with other countries in the framework of the concept of "Global Britain." However, much lies in the details, and it is unclear what practical conditions London will be able to achieve, ”the expert summed up.