LONDON, June 11, (Xinhua/GNA) - Despite the eagerness of both sides, it is unlikely for
U.S. and UK to strike a trade deal in the foreseeable future, Peter Holmes,
trade expert and Fellow of the UKTPO at the University of Sussex, told Xinhua
in a recent interview.
In the state
visit to the UK last week, U.S. President Donald Trump said he believes Britain
can have a "very, very, substantial trade deal" with the U.S. after
Britain leaves the European Union (EU).
But his remarks
about Britain's National Health Service (NHS) saying the NHS should form part
of the future trade deal have sparked fury in the country.
personal opinion is that the only gains readily available would be tariff reductions
on some food and chemical products, and possibly exemptions from U.S. tariff
surcharges," said Holmes, referring to the possible scale of the future
U.S.-UK deal, "but as we have seen USMCA (United States-Mexico-Canada
Agreement) do not in fact provide much by way of guarantees."
that deep regulatory gains are hard to realize in the deal, noting that
"any regulatory alignment with the U.S. would have two costs".
Firstly, the UK
would be under pressure to change its domestic regulations, such as lowering
its standards and restricting it policies in some areas.UK consumers do not
like U.S. food safety standards.
side is really determined to press the UK to change its food safety rules.
Chlorine washed chicken is symbolic but also a real concern," Holmes
It is unlikely
that any deal with the U.S. would explicitly require structural changes in the
NHS, such as privatization of core functions," he added with another
example of NHS, "but the U.S. might insist on including provisions, for
example on services, that later on it could claim restricted UK policy
move away from alignment with the EU in either tariffs or regulations would
mean more difficult access to the EU and pose problems for the Irish border.
explained, "U.S. is trying to get the UK to align its standards system in
that of the U.S., which would create additional barriers with the EU."
U.S. intention to signal its aim to prize the UK away from the EU regulatory
system, his view is that even with "firm intentions" on both sides,
it would be difficult to do a deal in the foreseeable future.
stressed that, even if a deal could be done, many observers would be
distrustful of promises made by the current U.S. administration given recent
issues over tariffs against Mexico.
be right that the fears of damage from a UK-U.S. deal are exaggerated," he
said, "but there are grounds to fear that a very weak UK government
desperate to get a trade deal would make unwise concessions on