The UK is now an independent trading nation. We believe removing barriers to trade will deliver prosperity for the UK and that is why we will use our voice to champion free trade and lower barriers at every opportunity.
Today, we are publishing the following documents relating to a potential future free trade agreement between the UK and the US:
• the Government’s negotiating objectives;
• the Government response to the public consultation on trade negotiations with the US and;
• a Scoping Assessment to provide Parliament and the public with a preliminary assessment of the potential long run economic impacts of an FTA between the UK and the US.
An FTA with the US represents significant opportunities throughout the economy, from agriculture to professional services. Potential benefits include better jobs, higher wages, more choice and lower prices for all parts of the UK.
UK-US total trade was valued at £220.9 billion in the last year, including 19.8% of all our exports. My department’s analysis shows a UK-US FTA could increase trade between both countries by £15.3 billion annually in the long run in comparison to 2018, and increase UK workers’ wages by £1.8 billion annually.
All our new trade deals will be specifically tailored to the shape of our country’s economy, so they can deliver the greater opportunities and higher standard of living every part of the UK wants.
In our US FTA we will seek a dedicated SME chapter and SME-friendly provisions throughout – on everything from customs and trade facilitation, services sectors and business mobility to telecommunications, digital trade and intellectual property – knocking down trade barriers that will benefit the 30,000 SMEs in every part of the UK already exporting to the US.
Our team will drive a hard bargain for all British industries and people. We have created a negotiation team which is ready to deliver for the UK. We will direct them robustly to pursue Britain’s economic interests. We are committed to reaffirming our protections for 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. We will be ready to walk away from the negotiating table if the right deal is not on offer.
The objectives published today are underpinned by one of the biggest consultations ever undertaken with the UK public, businesses and civil society, covering trade with the US, New Zealand and Australia, and our potential accession to the Comprehensive and Progressive Agreement Trans-Pacific Partnership (CPTPP).
Stating our negotiation objectives for the US-UK FTA will enable us to begin talks with the US, while we also negotiate new trading arrangements with the EU. We will also prepare for trade agreements with others, with talks helping to achieve the best possible outcome for UK consumers and businesses.
The Government will continue to engage with Parliament, the devolved administrations and the public as we negotiate future trading relationships.
Best wishes,
THE RT HON ELIZABETH TRUSS MP
Secretary of State for International Trade
& President of the Board of Trade