EU ties could be ‘poison pill’ to US trade deal
Congressman says future talks will be undermined if Britain remains too aligned with Brussels after Brexit
BRITAIN’S hopes of a free-trade deal with the United States will be undermined if it keeps restrictive EU rules after Brexit, the head of a US congressional delegation has warned.
George Holding, the chairman of the British-american Parliamentary Group, told The Daily Telegraph that staying too aligned to Brussels could create a “poison pill” for US trade talks.
The Republican congressmen warned the UK against doing anything that would limit the ability for both countries to agree the “fullest” trade deal possible.
The comments will likely be jumped on by Eurosceptics amid a fierce debate about how aligned Britain should stay with the EU after Brexit.
Mr Holding is leading a cross-party group of congressmen who will today hold talks in London with British MPS and peers. The gathering will start with a four-hour discussion on trade before moving on to defence, with domestic politics and US-UK relations on the agenda for Friday.
Baroness Fairhead, the minister for trade and export promotion, will address the annual gathering, which brings together politicians from both sides of the Atlantic.
A US-UK trade deal has been touted by Eurosceptics as a possible economic win after Brexit, but talks cannot formally begin until March next year.
With debate raging about the nature of the UK’S future relationship with Brussels, Mr Holding voiced concern about Britain adopting too many EU rules. “It’s important for the UK to understand how politically popular a trade agreement would be in the United States and how many members of Congress would like this agreement,” he said.
“The worst thing would be for the EU to agree standards or requirements with the UK that would amount to a poison pill to the US.”
Mr Holding named limits to data sharing and rules on how much capital banks must hold as areas where Britain should avoid EU red tape.
Critics are likely to counter that agreeing close ties with the EU after Brexit will smooth any disruption to existing trade and ensure protections – such as over the environment – are not eroded.
The power to sign trade deals in the US ultimately lies with Congress, which temporarily gives the president the right to negotiate on its behalf.
Majorities in both the Senate and the House of Representatives would be needed to approve any US-UK deal, meaning potentially years of delays unless congressmen are on board.
Mr Holding said the delegation would listen to concerns about the sale of chlorinated chicken in the UK – a possible roadblock in talks. “I think it’s important our members understand the concerns that British MPS’ constituents are bringing to them,” he said.
Dr Liam Fox, the International Trade Secretary, welcomed the discussions set to take place.
“The USA is our single biggest trading partner and our ongoing trade dialogue will help provide certainty and confidence to businesses on both sides of the Atlantic,” he said.
“Our ongoing discussions are also laying the groundwork for a potential future free trade deal to boost our mutual trade once we leave the EU.”