I am pleased to inform you that we will be publicly launching free trade agreement negotiations with the US today.
This negotiation round will continue for the next 2 weeks. Negotiations will be carried out by video conference, ensuring that talks can progress during the Covid-19 pandemic.
We will continue to conduct talks remotely until it is safe to conduct talks in person after which point there will likely be a mixed approach.
Once the round has concluded I will make a statement to Parliament reporting on the outcome of the round, and updating on the subsequent dates of the next negotiating round, to ensure the public are informed of progress and that negotiations are undertaken transparently.
More trade is essential if the UK is to overcome the unprecedented economic challenge posed by Covid-19, and new trade agreements are an important part of the long-term economic recovery. Our analysis shows that a US trade deal could lead to a £15 billion increase in trade, benefit every region and nation of the UK with a majority of sectors set to benefit including agriculture, automotive, consumer goods such as ceramics and services industries.
A UK/US free trade agreement will aim to secure comprehensive, far-reaching and mutually beneficial tariff reductions, reducing the £493 million worth of tariffs levied on UK exports to the US each year. An free trade agreement will increase access to the US market for UK businesses, and lower prices and increase choice for UK consumers. An free trade agreement with the US will also enable the UK to protect its interests when threatened by unexpected surges in imports of goods or unfair trading practices, while making the appropriate commitments to transparency, due process and proportionate use of trade remedies. It will also remove trade distorting tariffs.
Over 31,600 small British businesses are already exporting goods to the US. The Government will seek to include a specific SME chapter in a US free trade agreement to support and further stimulate this trade.
The Government will set global best practice by future-proofing the agreement to take account of changing technology and developing areas of the economy. For example, the Government will secure cutting-edge provisions which maximise opportunities for digital trade across all sectors of the economy.
Our team of negotiators will drive a hard bargain for all British industries and people. We are committed to our red lines – the NHS, the price it pays for drugs and its services are not for sale. There will be no compromise on high environmental protection, animal welfare and food standards. It is in the interests of both the UK and US to reach an agreement, but we will walk away from the negotiating table if the right deal is not on offer.
The Government is committed to transparency and will ensure that parliamentarians, UK citizens and businesses have access to the information they need on our trade negotiations.
Best wishes,
THE RT HON ELIZABETH TRUSS MP
Secretary of State for International Trade
& President of the Board of Trade