Close trade will secure our special relations

It has been just over 70 years since Winston Churchill introduced the phrase “special relationship” to describe the intimate bond between the United States and the United Kingdom. Despite its longevity, even the best relationships require work. In this moment – with a new and unconventional president in my country and growing political, economic and security challenges in the UK – that work necessitates a discussion about how we approach issues like Brexit, the economic relationship between our countries, and the growing threat of terrorism.

But first, what the special relationship is not. While our unique and beneficial association has endured through 12 US presidents and 14 British prime ministers, it is not principally a relationship between two elected leaders. Even Ronald Reagan and Margaret Thatcher found their relationship strained by such things as the war in the Falklands. I have experienced the special relationship through three distinct lenses: first as a student studying at Edinburgh, second as majority leader in the US House of Representatives, and now as the vice-chairman of a Us-based investment bank with offices and extensive business in the UK.

What makes the relationship special is the closeness of our people and our shared belief in principles of self-government, free enterprise, and human freedom and dignity. The US is strengthened when the UK is strengthened, which is why we both need a Brexit that provides certainty and greater economic opportunity for the UK. While we may share common goals, the task of concluding a successful Brexit belongs to the UK’S leaders.

The US government should offer support in the Brexit negotiations, but must recognise that, at times, the best support may be in the form of space for UK and EU leaders to manoeuvre. In the US, we must do a better job of ignoring the noise of the day and instead remain focused on the overriding objective: a successful conclusion to Brexit.

While UK officials are negotiating, business leaders on both sides of the pond must continue to do what we do best: look for opportunities for greater business engagement between the US and UK firms. Even with the political uncertainty around Brexit, there are ample opportunities for investment and growth.

At the appropriate time, our elected leaders should further cement the economic ties between our two nations with a robust trade agreement, which through the elimination of tariff and non-tariff barriers can serve as a model for the rest of the world. Goals for a US-UK trade agreement must include easing market access – especially for service industries – strengthening investment procedures, including through appropriate dispute resolution mechanisms, facilitating cross-border data flows, and greater co-operation on the protection of intellectual property.

The reduction of non-tariff barriers, especially in government regulation, between the US and Europe, is a major goal of the now-stalled Transatlantic Trade and Investment Partnership (TTIP). There is a tremendous opportunity to enhance the economic ties between the US and the UK via a trade agreement that achieves for our two countries the goals of TTIP – namely greater regulatory co-operation and standard setting, including in the financial services sector.

In the same speech that Churchill coined the “special relationship,” he also introduced the phrase “iron curtain”. Much of what animated that speech and our special relationship was our shared security interests. While we no longer confront the threat of Soviet aggression, our two countries have been forced to confront the dangers of terrorism.

These are challenging times for the British and American people. But stronger economic and security ties will cement the special relationship in the same way it did for prior generations, and it will endure.

‘There is a tremendous opportunity to enhance the economic ties of the US and UK’

Eric Cantor is the vice chairman and managing director at Moelis & Company, and former house majority leader and US representative for Virginia