The United States and the United Kingdom initiated formal negotiations on a free trade agreement on 5th May’20, assuring to work quickly to obtain a deal that could prevent the worst economic impacts of COVID-19.
The discussions will be conducted virtually and include over 300 US and UK officials in nearly 30 negotiating groups. US Trade Representative Rob Lighthizer and UK Trade Minister Liz Truss are leading the efforts.
On 5th May’20, they issued a joint statement: "We will undertake negotiations at an accelerated pace and have committed the resources necessary to progress at a fast pace.”
"A Free Trade Agreement would contribute to the long-term health of our economies, which is vitally important as we recover from the challenges posed by COVID-19.”
The first round of talks began as new US data showed a record drop in US exports and a contraction in the vast US service sector for the first time in over a decade.
It is Washington's first major new trade negotiation in 2020. London has also been working out trade terms with the European Union following its exit from the bloc in January.
British Ambassador Karen Pierce said: "A very good sign of confidence in the economic recovery that the two countries were moving ahead with the talks.”
Lighthizer, who has named the UK trade talks one of his top priorities for 2020, published objectives more than a year ago that sought full access for US agricultural products and reduced tariffs for US manufactured goods.
Although, the parties remained at odds over tariffs, including aluminium duties imposed by the Trump administration in 2018.
In regards to President Donald Trump's threat to impose more tariffs on China over its handling of the outbreak, Pierce said, "In general terms, tariffs are not particularly conducive to free trade, and we the Brits believe very much in free trade. It’s in our history, it’s in our DNA. The dispute between the US and China is for them to resolve.”
Trade-in goods between the United States and the United Kingdom were valued at $127.1 billion in 2018, with the two sides roughly in balance, while the services trade topped $134.8 billion. Britain is the seventh-largest US goods trading partner, after South Korea, according to the US Census Bureau.
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