Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

US, UK launch trade talks, pledge quick work as virus ravages global economy

Date: 06-05-2020
Subject: US, UK launch trade talks, pledge quick work as virus ravages global economy
The United States and Britain launched formal negotiations on a free trade agreement on Tuesday, vowing to work quickly to seal a deal that could counter the massive drag of the coronavirus pandemic on trade flows and the two allies' economies.

The talks, to be conducted virtually, will involve over 300 U.S. and UK staff and officials in nearly 30 negotiating groups, U.S. Trade Representative Robert Lighthizer and UK trade minister Liz Truss said in a joint statement.

"We will undertake negotiations at an accelerated pace and have committed the resources necessary to progress at a fast pace," they said. "A Free Trade Agreement would contribute to the long-term health of our economies, which is vitally important as we recover from the challenges posed by Covid-19," the disease caused by the novel coronavirus.

The first round of talks began as new U.S. data showed a record drop in U.S. exports and a contraction in the vast U.S. service sector for the first time in over a decade.

It is Washington's first major new trade negotiation in 2020. London has also been working out trade terms with the European Union following its exit from the bloc in January.

London's goal was to expeditiously complete both negotiations and there could be a positive dynamic between them, even though they are being headed by different lead negotiators, one UK official told journalists in a background briefing.

British Ambassador Karen Pierce told reporters it was "a very good sign of confidence in economic recovery" that the two countries were moving ahead with the talks.

Lighthizer, who has named the UK trade talks one of his top priorities for 2020, published objectives more than a year ago that sought full access for U.S. agricultural products and reduced tariffs for U.S. manufactured goods.

Stung by shortages of medical equipment and drugs during the pandemic, both countries are seeking to shift some supply chains away from China.

Lighthizer said in remarks released later that the pandemic "has shown that depending purely on cheap imports for strategic products can make us vulnerable in times of crisis" and the United States needs a healthy manufacturing base and thriving farmers.

But they are at odds over tariffs, including steel and aluminum duties imposed by Washington in 2018.

Asked about President Donald Trump's threat to impose more tariffs on China over its handling of the outbreak, Pierce said, "In general terms, tariffs are not particularly conducive to free trade, and we the Brits believe very much in free trade. It‘s in our history, it‘s in our DNA. The dispute between the U.S. and China is for them to resolve.”

Britain is also pushing the United States and the EU to resolve a dispute over aircraft subsidies that has resulted in tit-for-tat tariffs, including on Scotch whiskey.

Republican U.S. Senator Chuck Grassley of Iowa, another big critic of tariffs, told reporters that he hopes a strong trade deal on agriculture the UK lays the groundwork for an improved deal with the EU.

Agriculture is expected to be among the thorniest issues in the talks, given strong British opposition to U.S. genetically modified crops and antibacterial treatments for poultry. Prime Minister Boris Johnson has vowed to drive a "hard bargain" and Truss has said that Britain would not diminish its food safety standards.

Britain also will not change its approach to drug pricing or Britain's National Health Service, the UK official said.

Trade in goods between the United States and United Kingdom was valued at $127.1 billion in 2018, with the two sides roughly in balance, while the services trade topped $134.8 billion. Britain is the seventh-largest U.S. goods trading partner, after South Korea, according to the U.S. Census Bureau.

Ted Bromund, a senior research fellow at the Heritage Foundation, a conservative think tank in Washington, said one area ripe for tariff reduction was in automotive trade, Britain's largest export sector to the United States. U.S. passenger car tariffs are 2.5%, with pickup truck tariffs at 25%, while Britain maintains a 10% car tariff.

Tuesday's opening plenary will be followed by virtual meetings from May 6 to 15. The UK official said while it was unusual to negotiate on all areas at once, the two sides were keen to move forward quickly.

Further rounds will take place approximately every six weeks and will be carried out remotely until it is safe to travel, the UK embassy said. There was no specific deadline for completing the talks, the official said.

Grassley said he thought the talks will be more difficult via videoconference.

"It seems to me it's not as quite good as sitting across the table from them," he said.

Source:- moneycontrol.com

Infodrive India Pvt Ltd

Delhi :
  F-19, Pocket F, Okhla Phase-I
      Okhla Industrial Area

      New Delhi- 110020
   011 - 40703001

Kolkata :
  5th Floor Stesalit Towers,
      E-2-3, EP & GP Block,

      Sector-V, Salt Lake City,
      Kolkata-700 091
   033 - 71177191

INFODRIVE INDIA Copyright © 1996-2020 InfodriveIndia. All Rights Reserved.
Please read our Terms of Use and Privacy Policy before you use.

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help