According to Politico President Joe Biden has decided to set aside plans for a significant trade agreement with the U.K. in the lead-up to the 2024 election. Senate opposition and disagreements over the deal’s scope have led to this quiet shelving.
Earlier this year, the United States Trade Representative’s office outlined a draft agreement comprising 11 proposed chapters, indicating negotiations to commence by the end of 2023. However, due to various challenges, insiders from both the British and U.S. governments, speaking anonymously to POLITICO, revealed that the deal is unlikely to move forward.
“It doesn’t seem like it’ll resurface,” stated one insider familiar with the proposed negotiations.
The proposed timeline, excluding market access and not meeting the World Trade Organization’s free trade agreement standards, aimed to conclude negotiations before the upcoming elections in both Britain and the U.S. However, the deal resembled the U.S.-led Indo-Pacific Economic Framework for Prosperity more than a comprehensive trade agreement, focusing on regulations and non-tariff barriers.
The collapse of the Indo-Pacific Economic Framework talks occurred last month following criticisms from senior Democrats about the lack of enforceable labour standards in the Biden administration’s trade provisions.
Despite the British government’s strong interest in securing a post-Brexit trade agreement with the U.S., the initial draft aimed to pave the way for a more comprehensive deal. The U.K.’s Business and Trade Secretary, Kemi Badenoch, proposed an Indo-Pacific Economic Framework-style agreement during Biden’s visit to Belfast in April to revitalise discussions that originated during the Trump administration.
However, significant concerns from influential voices in the U.S., such as Democratic Senator Ron Wyden, have halted progress. Senator Wyden’s spokesperson emphasized that any trade negotiations should prioritise substance and benefit Americans, stressing the importance of congressional involvement in approving future trade agreements.
The U.S. Trade Representative sought Congress’s input on a potential U.K. trade deal, but unresolved issues, particularly regarding agriculture and its impact on American workers, remain contentious points between the two nations.
In recent discussions with U.S. diplomats, tensions were palpable, focusing on the need for a trade policy centered around workers and the American economy. The U.S. approach emphasizes labor standards and environmental issues, which clashes with certain chapters in the draft, particularly those related to agriculture regulations that the British leadership opposes.
Amidst these challenges, the primary focus of the U.K.-U.S. trade relationship currently centers on securing a critical minerals agreement to facilitate British automotive firms’ access to electric vehicle incentives offered by the Biden administration.
While some in the U.K. question the necessity of a comprehensive trade deal with the U.S., pointing out that trade between the two nations has been thriving without it, others highlight the potential for improved trade if such an agreement were in place.
Overall, despite the growth in bilateral trade, a U.S.-U.K. trade deal isn’t a top priority for the United States at the moment.
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