Is It Too Soon to Initiate Bilateral UK Trade Talks? – Reuters

By David Lawder

WASHINGTON – U.S. Trade Representative Michael Froman informed his British counterpart on Monday that the two nations cannot initiate discussions on bilateral trade and investment agreements until there is greater clarity regarding Britain’s future relationship with the European Union.

In a meeting held in Washington, Froman conveyed to UK Trade Secretary Liam Fox that the United States is willing to engage in discussions about enhancing trade and investment ties with the United Kingdom at the right time.

Since the June 23 Brexit vote, Britain has yet to begin its separation negotiations with the EU, leading to uncertainty over the extent of future economic ties between an independent Britain and the remaining 27 EU countries. Key issues at stake include the possible reimposition of tariffs, the ability of London-based financial firms to operate in Europe, and immigration regulations impacting workers.

The USTR office stated, "As a practical matter, it is not possible to meaningfully advance separate trade and investment negotiations with the United Kingdom until some of the basic issues around the future EU-UK relationship have been worked out."

Additionally, the Obama administration is assessing how Britain’s exit from the EU will influence negotiations regarding the Trans-Atlantic Trade and Investment Partnership free trade agreement between the U.S. and the EU.

Negotiations have been slow-moving, with Froman recently expressing concerns that proposals will need to be adjusted in light of Britain’s departure, which constitutes 25 percent of U.S. exports to the EU and accounts for 40 percent of U.S. wine exports to the bloc.