Mnuchin Sees U.S. Trade Deal With U.K. This Year
January 25 2020 - 8:26AM
Dow Jones News
By Paul Hannon
The U.S. hopes to complete a new trade agreement with the U.K.
by the end of this year, Treasury Secretary Steven Mnuchin said
Saturday.
The U.K. will leave the European Union Friday, opening the way
for it to negotiate new trade deals with the bloc and other
countries around the world. One of its top priorities is an
agreement with the U.S.
Speaking in London after attending the World Economic Forum's
annual meeting in Davos, Switzerland, Mr. Mnuchin said a deal is
achievable this year.
"The timing is important," he told an audience of diplomats at
international-relations think tank Chatham House. "We're focused on
trying to get this done this year."
The U.K. will shortly start talks with the EU on the rules that
will govern trade between the two after a transition period ends in
December. Mr. Mnuchin said most trade issues could be negotiated in
parallel, although some would have to be dealt with in talks with
the EU first.
"There are certain issues that perhaps they need to resolve with
the EU, but there are a lot of issues that can be resolved
simultaneously," he said.
An agreement would boost U.S. exports to Europe's second-biggest
economy, after Germany. It would also help Washington advance its
trade agenda following its phase-one agreement with China and a
renegotiated pact with Canada and Mexico, and expand its
relationship with a key ally as it enters a new era.
"The U.K. is our most important relationship, it's a very
strategic relationship," Mr. Mnuchin said. "The U.S. and the U.K.
have very similar economies. I think this will be a very important
relationship."
For London, an accord would demonstrate Britain's ability to
secure major economic deals as it divorces from the EU, its biggest
trading partner. It could also provide a lifeline to crucial U.K.
industries, including finance and business services.
American and British businesses, from tech companies to farmers,
are eager to export their goods, and standards, across the
Atlantic.
Annual trade in goods and services between the U.K. and U.S.
tops $230 billion. Roughly 20% of British exports each year go to
the U.S., making it the U.K.'s largest market outside the EU.
Americans account for the biggest share of foreign investment in
Britain at some $425 billion.
"There'll be a lot more trade between the U.S. and the U.K.,"
Mr. Mnuchin said.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
January 25, 2020 09:11 ET (14:11 GMT)
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