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Starmer wants to negotiate free trade deal with Trump

After leaving the EU, Britain is seeking to conclude a major transatlantic free trade agreement, but for now this remains only an ambition

Newsroom January 17 10:00

British Prime Minister Kire Starmer today called on US President-elect Donald Trump, in two interviews with Politico and the Financial Times, “to discuss a trade deal”, the so-called “holy grail” of the British post-Brexit.

“Our ambition is to strike some kind of deal with the US, a trade deal. That’s what we’re focused on,” the Labour prime minister said, three days before Trump’s inauguration.

After leaving the European Union on January 1, 2021, Britain is seeking a major, transatlantic free trade deal. For now, it remains only an aspiration, because London is reluctant to open its market to some U.S. products, especially agricultural ones.

Trump’s first administration was willing to enter into such a deal and even went ahead with negotiations, Democratic President Joe Biden left the issue pending.

One of Trump’s most senior economic advisers, Stephen Moore, recently suggested, speaking to the BBC, that there could be a deal with the UK, provided London made the “right choice” between “the more socialist European economic model and the American model based more on the free enterprise system”. “It would be preferable for Britain to move towards the American model (…) this would encourage the Trump administration to enter into a free trade agreement with it,” he said.

If the two sides start talks, Britain could be spared the 10-20% tariff increases that Trump is threatening to apply to all products imported into the US.

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“The swearing-in hasn’t happened yet, so let’s see what decisions are made afterward,” Starmer told Politico, explaining that he has “clearly,” told Trump he wants a deal.

Since Brexit, Britain has struck trade deals with the EU, Australia, New Zealand, Singapore and other countries. Its talks with India are still ongoing. In early 2024 it broke off negotiations with Canada as there was no agreement between them on agriculture.

 

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