The United States has initiated trade talks with the United Kingdom to establish a mini deal that aims to decrease trade tariffs. Mr. Robert Lighthizer, President Trump’s trade representative, is hopeful that the agreement will reduce the high costs of tariffs on products, including Scotch whisky.
Schedule of Trade Talks
Prior to the announcement of the mini trade deal, the UK had already signaled its intent to remove tariffs on US aerospace businesses. The timing of this announcement was synchronized with Brexit talks, in the hopes of creating a profitable trade agreement with the outgoing US administration.
The announcement was intended to go against the EU’s support of Airbus, the aircraft manufacturer. Mr. Lighthizer stated:
“I’m in talks with International Trade Secretary Liz Truss to try to reach some form of agreement. I hope we can come to an agreement; we don’t have much time left.
We have an advantage in that both the US and the UK, particularly the current UK government, do not heavily subsidize, unlike some other countries.
So it would be helpful if we could reach some sort of agreement.”
However, he suggested that the UK would need to offer more than just the Airbus announcement in any trade negotiations.
UK Announcement on Airbus Support
In early December, the UK declared it would no longer provide support to Airbus in its long-standing dispute over subsidies. This argument has resulted in the EU placing high tariffs on imports from Boeing and other manufacturers.
The conflict has been brewing for 16 years now, and Liz Truss has expressed her desire to “de-escalate” the UK’s participation in the subsidy debate.
During the trade talks, various UK food standards, such as those for chicken and beef, will likely be discussed, as well as potential reforms to the NHS’s payment policies for US drugs.
Mr. Lighthizer concluded his announcement by stating:
“These negotiations are ongoing.