- “We are preparing a very big deal. We have never had such a big deal with Britain,” Trump said on Sunday.
- Britain leaves the EU on October 31 but has still not signed up to the agreed terms of Brexit.
- Economists identified at least four reasons why people doubt the imminent happy alliance of the United States with Britain, freed from the fetters of the European Union.
“We are preparing a very big deal. We have never had such a big deal with Britain,” Trump said on Sunday. “It will be an excellent agreement,” British Prime Minister Boris Johnson met him at breakfast before the G7 summit in Biarritz, France.
Britain leaves the EU on October 31 but has still not signed up to the agreed terms of Brexit. A no-deal Brexit from the EU would be fraught with peril after 40 years of marriage.
After Brexit, Britain will lose unimpeded access to the EU market— the second largest economy in the world, with a population of half a billion people. Britain expects to compensate for the damage through free trade agreements with rivals of Europeans, especially with the United States, the richest country in the world.
Some do not believe Trump’s promises, recalling his love of protectionism. He came to power under the slogan “America First,” and unleashed trade wars with the whole world, including his North American neighbors, Europe, and China.
Others fear that the United States will force Britain to soften the EU’s stringent requirements for food quality and, in general, deregulate the economy, moving away from the European model of the welfare state in the direction of American capitalism. In the process, this could sacrifice agriculture, the financial sector, and free medicine, letting American competitors enter the protected industries.
Economists identified at least four reasons why people doubt the imminent happy alliance of the United States with Britain, freed from the fetters of the European Union.
Trump has not entered into a single major trade agreement since taking power. Quite the contrary, he broke the largest deals, with neighbors in North America, and with countries in the Asia-Pacific region.
He stopped negotiations on a trade agreement with the EU, unleashed a full-scale trade war with China, and sabotaged the work of the World Trade Organization.
In the process, he stated many times that he would make a deal of the century with one country, then another. And as many times, he changed his mind at the last moment. Even having agreed, as in the case of Mexico in May, he put forward new conditions after signing.
In all these negotiations, Trump spoke from a position of strength, dictating terms. Especially if the partner was weaker and in need.
Britain claims that it is leaving the EU to reclaim an independent trade policy and no longer be a vassal state of Brussels. However, London is directly related to the definition of this policy as one of the main members of the bloc.
London does not have to count on the indulgence, pliability, and inconstancy of Trump. The UK’s own ambassador to the United States, Sir Kim Darroch, resigned last month, after calling the Trump administration “dysfunctional” and “inept.”
Trump is, of course, running for re-election to a second term next year. Therefore, he is not expected to make concessions to trading partners. Rather, Trump is expected to ratchet up the confrontation under the pretext of protecting the American manufacturer.