Trump and Theresa agree to increase trade between the two countries
The Dollar Business Bureau
UK and US leaders met on the sidelines of the G7 meet and reaffirmed to complete a bilateral trade agreement after UK's exit from the European Union.
The two leaders met at Sicily and decided to forge their trade relationship. A spokesperson told the media that the two leaders agreed on the importance of free trade while ensuring that the citizens of both the countries are not left behind due to globalization.
"The president and the prime minister reaffirmed their commitment to increasing trade between the UK and the U.S., including a post-Brexit trade deal," the spokesman said.
Theresa May was the first leader of a State to visit the White House after Donald Trump became the President. It was then that the importance of a trade agreement was discussed. Negotiations between the two countries cannot begin until UK exits the EU completely as the outcome of Brexit could have an impact on the deals UK has with the US.
Talks between the EU and UK are likely to begin next month and continue till March 29, 2019, to reach a consensus.
The main advantage that UK gains after leaving EU is its freedom to negotiate free trade deals with many countries.
But uncertainty still reigns over UK’s fate once it leaves the EU, will the future deals be able to replace the lost ones it had with EU? How much of an impact will protectionism holds its sway over the deals and most importantly what will be the terms and conditions with which UK gets freedom from the EU?
Though many analysts opine that there is no room for pessimism on trade deals between UK and US as the Trump administration seems to be warmly inclined towards its largest trade partner as it could hold broader geopolitical reasons.
Tariffs could be lowered, financial deals could be liberalised which will aim to eliminate and prevent unnecessary border barriers, non-tariff barriers and enhance the compatibility of standards and regulations. Both US and UK could gain a lot from the flexible market rules within their agreements and the mutual recognition of their qualifications would enhance the inherent nature of the deals.