On Thursday, 28 February, Washington published its negotiating aims for a free trade agreement (FTA) with London.
Whereas the European Union and the United Kingdom are delaying setting out the terms of their future trade relationship, the office of the US Trade Representative, Robert Lighthizer, is gambling on gaining new market shares, mainly in agriculture, and on being able to include elements of its regulatory model.
The chapter on agriculture, where the aim is to “secure comprehensive market access for US agricultural goods in the UK” shows the American position at its most aggressive. The United Kingdom is a net importer of agri-food products, 30% of which came from the EU in 2017, compared to only 4% from North America.
These new negotiations therefore provide Washington with the opportunity to gain a larger share of this market, for meat products in particular, but also for beverages and fruit and vegetables. The aim therefore is to eliminate not just tariffs but also non-tariff barriers, by promoting “greater regulatory compatibility [...] including through regulatory cooperation” and by opening up the UK market to genetically modified organisms (GMOs).
The negotiations will provide an opportunity for the United States to encourage the British to bring the two regulatory systems closer together on health standards and standards for plant health. This would reduce the cost for US goods to penetrate the UK market - with a consequent increase in the same costs for European exporters.
And, as European geographical indications (GIs) have always upset the Americans, the FTA should “prevent the undermining of market access for US products through the improper use of the UK’s system for protecting or recognizing geographical indications”.
Washington also wants to “develop new approaches to emerging trade areas”, such as digital commerce and financial services. Negotiations on services will be conducted on the basis of a negative list.
In another unprecedented step, the UK has also been requested not to manipulate its currency.
Finally, the text of the objectives warns the British if they are tempted to enter into trade negotiations with China: the United States will be able to “take appropriate action if the United Kingdom negotiates a free trade agreement with a non-market country”. (Original version in French by Hermine Donceel)