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CNNMONEY
Great Britain wants a close commercial relationship with the European Union. He also wants an ambitious free trade deal with the United States
He probably can not have both.
The prospect of a trade agreement between the two countries will likely be on the agenda when President Donald Trump British Prime Minister Theresa May on Friday
Trump, who spoke favorably of the departure from the United Kingdom of the European Union, has already promised the country a "very, very big problem, very very quickly."
There is, however, a major new potential barrier: The Brexit plan released by the British government on Thursday is designed to keep the country closely aligned in key areas with the European Union, severely limiting its flexibility to negotiate new trade agreements.
an illusion to propose that we could stay closer to the European Union and make independent trade agreements, "said Peter Holmes, trade expert at the University of Susbad.
The Brexit proposal aims to preserve the border control and the most feared tariffs by companies with complex supply chains or short-lived agricultural products.
But this would also prevent Great Britain from Britain to offer other countries, including the United States,
British options are limited
Regulatory concessions would be ruled out because Britain must remain aligned with the strict rules of the EU on safety and the environment
Examples: Genetically modified crops, feedstuffs containing antibiotics and chicken washed with chlorine are banned in the European Union but common in the United States.
US farmers would like these standards to be watered down so they can sell their UK products. But Britain will not be able to agree and stay aligned with the European Union.
This is a stumbling block that has been invoked by opponents of the plan, including Boris Johnson, who resigned Monday as Britain's foreign minister.
"By giving up control of our regulation for goods and agribusiness … we will make it much more difficult to conclude free trade agreements," writes Johnson in his resignation letter in May .
Woody Johnson, US Ambbadador Britain appears to be in agreement, saying to the BBC this week that a bilateral trade agreement between the two countries is now "totally in the air." ;air".
It would also be difficult for Britain to offer concessions on services, which 80% of its economy
Robert Basedow, international trade expert and badistant professor at the London School of Economics, has stated that mutual trade in services is already very welcoming to American companies.
"And the areas that remain pretty closed, For example, health care, I do not think the UK has any political support for actually opening them."
The United States has tried in the past access to the health care sector in the context of the European Union negotiations. But British protests over this issue helped to derail the talks
The British government's plan for Brexit also calls for a future customs arrangement under which Britain would collect EU tariffs on goods for the block. This would allow the UK to set its own tariff rates and offer concessions to other countries under a free trade agreement.
But critics say that the tariff plan is not tested and vague. Such a proposal would almost certainly be rejected by the European Union.
High Stakes
On Thursday, May touted his country's "unparalleled" trade and investment relations with the United States, saying that countries are the biggest investors. But the conclusion of a favorable trade agreement with the United States was always going to be difficult for the UK, which will not have the bargaining power of the European Union.
"Everyone knows that the UK is They desperately need a trade deal because they just do not have one once they leave the Union. European Union, "said Basedow.
If negotiations begin, British novice trade negotiators will likely face difficulties. you think of it as a computer game, the United States is sort of the ultimate opponent you encounter, "said Basedow." Starting your negotiations with the United States is usually a bad one idea. "
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