UK-US Trade Deal Challenges and Prospects

The UK-US trade deal has been a major topic since Brexit, but negotiations have faced delays and challenges. Here are some key facts about the proposed deal:

1. Post-Brexit Priority

The UK sought a trade deal with the US as a key post-Brexit opportunity to strengthen economic ties outside the EU.

Former UK PM Boris Johnson called it a 'priority,' but progress has been slow.

2. Sticking Points

Agriculture: The US wants greater access to UK markets for chlorinated chicken and hormone-treated beef, which face opposition from UK farmers and consumers.

NHS Protections: The UK insists the National Health Service (NHS) must be off the table in any deal, fearing US pharmaceutical companies could push for higher drug prices.

Geographical Indications: The UK wants protections for products like Scotch whisky and Stilton cheese, while the US opposes strict naming rules.

3. Biden’s Hesitation

President Biden has been less enthusiastic than Trump about a quick deal, focusing instead on domestic policies and the EU.

The UK’s stance on the Northern Ireland Protocol (part of Brexit) initially caused tensions with the US.

4. Mini-Deals Instead?

Instead of a full trade deal, the two nations have signed smaller agreements, such as:

Tariff removals on products like Scotch whisky and Levi’s jeans (2021).

Critical Minerals Pact (2023) to boost electric vehicle supply chains.

5. UK’s Shift to CPTPP

With the US deal stalled, the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2023, a Pacific trade bloc.

6. Future Prospects

A major UK-US trade deal is unlikely before the 2024 US election.

If Trump returns, negotiations could revive, but key disputes (like food standards) remain.

Trade Stats (2023)

UK exports to US: £157 billion (largest single-country trading partner).

US exports to UK: £112 billion.

Conclusion

While both countries benefit from strong trade, a comprehensive deal faces political and regulatory hurdles. For now, smaller agreements and the CPTPP may shape UK trade more than a US pact.

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