MERIDEN MP Saqib Bhatti has spoken of his support for a US-UK trade deal post-Brexit, despite consternation from farmers in the region.
Yesterday (May 14), the Department for International Trade issued a briefing stating it could offer ‘a big concession package’ to American negotiators in the coming months, to see a trade deal deal over the line before the end of the EU transition period.
The package could see tariffs on US farming products reduced.
Mr Bhatti, newly elected for the Conservatives at the 2019 election, suggested West Midlands businesses would be well placed to export more to America.
But Nick von Westenholz, director of international trade at the National Farmers’ Union, based at Stoneleigh, said UK farmers would be “very concerned” about the department’s proposals.
“Any concessions UK negotiators give on market access — such as lower or zero tariffs on agricultural goods — must be accompanied by clear conditions on how those goods have been produced,” he said.
“Anything else would represent a clear breach of the government’s own explicit red lines in trade negotiations.”
Mr Bhatti said: “The measures which have been implemented to control the spread of coronavirus have been challenging for many businesses in the West Midlands and as the Prime Minister sets out the roadmap for exiting the lockdown, it is time for us to think about how we are going to begin our recovery locally. A US-UK Free Trade deal will be at the heart of the West Midlands’ revival as a hub for manufacturing and economic progress.
“The result of the 2019 General Election was a clear mandate for the Prime Minister’s levelling up agenda. The British people voted clearly for a Government which is committed to spreading opportunity throughout the country. This will be done by encouraging free trade and entrepreneurship and the US-UK Free trade negotiations mark an important milestone in reaching our vision of a Global Britain.
“Why is the deal so important for the West Midlands? The West Midlands has maintained a trade surplus with the United States for many years. 1 in 5 of our exports already go to the US with £12,633 of goods exported to the US every minute. A free trade deal would mean an end to tariffs which makes it easier for more businesses to export to America and open up new customer markets. Crucially, the West Midlands has the right blend of manufacturing and professional services which makes it is one of the best placed regions in the country to benefit from a US-UK Free Trade Deal.
“The West Midlands is predicted to benefit to the tune of £363 million of extra trade alone meaning a US-UK Free trade deal would leave the West Midlands quids in.
“However, free trade deals are about more than statistics and numbers. For centuries, free trade has used to lift billions of people out of poverty using the idea of a comparative advantage. This means that two countries which specialise in two different products or services can trade with each other and benefit from each other’s specialism. This advantage gets passed on to consumers who benefit from cheaper products too. It is a win-win.
“The first round of the US-UK free trade negotiations is currently underway, lasting two weeks, with further rounds of negotiations every six weeks. This round was kick-started by the Secretary of State for International Trade, Liz Truss, via a video-call with US trade representative Robert Lighthizer.
“Trade negotiations are not easy and an ambitious deal like this will have its challenges. However, the Secretary of State has assured me that she is resolute and determined to bring us a trade deal which will unlock billions of pounds of economic growth. This free trade deal will be a powerful statement of intent as we emerge from the economic slumber that we are currently experiencing. Our focus on free trade, will set us apart as a thriving hub of commerce and ambition in the months and years ahead.”
