Trump Sidelines UK Trade Deal, Prioritises Asia in Negotiation Strategy

Donald Trump has pushed a trade deal with the United Kingdom down the priority list, signalling instead that his administration will first pursue agreements with Asian nations including South Korea, India and Japan.

The move is a setback for UK ministers who had hoped to finalise a deal with the United States by mid-May. Trade discussions have reportedly been divided into three phases by the US government, with the UK not included in the first wave of talks.

“The US has now decided to negotiate its trade deals in three phases. The government has been told it will not be in phase one – though that leaves the door open to be in either phase two or three,” said one source close to the discussions.

Responding to the development, a spokesperson for the Department for Business and Trade said: “The US is an indispensable ally and negotiations on an economic prosperity deal that strengthens our existing trading relationship continue. We've been clear that a trade war is not in anyone's interests and we will continue to take a calm and steady approach to talks.”

UK officials are increasingly concerned that their own ongoing negotiations with the European Union could complicate matters further. An EU deal, due to be signed off in May, could create regulatory tensions with the US, especially in areas where American officials have been critical of European rules.

The US administration has urged the UK to lower food standards to accommodate American agricultural imports, including beef and chicken. In return, British negotiators have offered to scale back a digital services tax on large US tech firms in exchange for reduced tariffs on steel, aluminium and cars.

Although the current US deadline for formal talks is set for July, hopes remain that informal discussions will continue beyond that point. At the same time, the UK is making notable progress in its negotiations with India, with only a few outstanding issues remaining – including the treatment of national insurance for temporary workers.

Talks with the EU are also progressing, though aligning food and farming standards with both the EU and the US is proving to be a complex challenge for UK negotiators trying to strike parallel deals.

Source: The Guardian