Row poses a threat to Trump trade deal, warns US diplomat

A TRADE deal with the United States is in doubt following the announcement of Theresa May’s Brexit plan, the American ambassador warned yesterday.

Woody Johnson said the Chequers proposals could imperil any future agreement with Washington.

He insisted that Donald Trump, who arrives in Britain on Thursday, was keen to strike a deal but that Mrs May’s proposals appeared ‘complicated’.

Brexiteers warn that her plan makes a US trade deal unlikely because it commits Britain to following Brussels’ rules on goods and agriculture.

They were also furious that the paper stated that the UK would have to follow EU court rulings on issues such as the environment and social policy.

Downing Street insisted it was ‘categorically untrue’ to suggest the plan would endanger an agreement with the US. Mr Johnson said he believed a trade deal ‘absolutely’ could be struck but said ‘whether we have one or not ... is totally up in the air’.

‘The President has stated very clearly that a bilateral agreement with the US is something that he’s in favour of,’ Mr Johnson told BBC Radio 5 Live.

‘He also respects sovereignty. He’s talked about sovereignty. He’s looking at it in our country as well. So I think the bilateral will be an important discussion that he’ll have with the Prime Minister.’

Despite his misgivings, Mr Johnson added: ‘From the US standpoint, yes, we’d love to do a bilateral agreement, and the President said he’d like to do it quickly, and all hands on deck.’