Liz halts trade war hitting UK exports
BRITAIN is bouncing back from the pandemic with a double boost to the economy.
In a deal worth hundreds of millions, International Trade Secretary Liz Truss has secured a suspension to punishing US tariffs.
And experts predict the UK economy will return to pre-Covid levels by the end of the year – 12 months earlier than expected.
A tit-for-tat battle between the US and the EU over aerospace subsidies had led to massive border fees on some exports, including Scotch whisky, Stilton cheese, pork, and cashmere products.
But after talks in London, Ms Truss and her US counterpart Katherine Tai are to lift retaliatory tariffs for five years.
Ms Truss called the deal fantastic news and said it “draws a line under an incredibly damaging issue”.
Ms Tai said reaching an agreement marked a “great step forward for our special relationship”.
The row had raged for 17 years but escalated after the World Trade Organisation found both sides had broken subsidy rules.
Washington hit the EU with tariffs on £5.6billion worth of goods in retaliation for state support given to Airbus.
Brussels hit back with tariffs on £3billion of US goods over subsidies given to Boeing.
The Scotch whisky industry is estimated to have lost more than £600million in exports after being hit by 25 per cent levies on each bottle.
Karen Betts, CEO of the Scotch Whisky Association, said the deal was very good news after two “extremely damaging” years.
Meanwhile economists expect growth to hit 8.2 per cent this year and 6.1 per cent in 2022.
The unemployment peak will be lower than previously forecast and household incomes will rise by 3.1 per cent next year, they say.