UK-US Trade Deal Not Easy: JD Supra

US President Donald Trump has suggested that he and UK Prime Minister Boris Johnson have plans for a “very substantial” trade deal. The UK cannot negotiate a trade deal until after it leaves the European Union, scheduled for October 31. “UK-U.S. preliminary talks on a bilateral free trade agreement (FTA) spanning the last two years, however, have failed to show any meaningful progress and are considered to be deadlocked,” explains Sophie Berner-Eyde, adding that World Trade Organization rules would govern US-UK trade until a deal is finalized. The EU represents 46 percent of the UK’s exports and is the UK’s largest trade partner, representing more than three times the trade with the US. The UK and the US have disagreements: Britain could try to exempt US agricultural goods, with lower standards, as well as health services. Also complicating a deal: varying standards among 50 US states as well as starting negotiations during a presidential election year. The Trump administration could balk at a deal if the UK imposes a digital tax, pursues trade talks with China, and maintains policies to stem climate change and preserve the Iran nuclear deal. Johnson will signal foreign-policy direction with his choice of US ambassador. – YaleGlobal