Truss plays down trade deal hopes
LIZ TRUSS has conceded that negotiations for a post-Brexit free trade deal with the United States will not restart for years, as she flew to New York ahead of a meeting with President Joe Biden.
The Prime Minister stressed her trade priority is striking agreements with India and the Gulf states, and joining a trade pact with nations including Australia and Japan.
However, she heavily downplayed the chances of talks even resuming to secure the comprehensive deal with the States that was billed by Brexit backers as a major benefit of leaving the European Union during the 2016 referendum campaign.
Labour said that the admission is “terrible news” for the UK economy, arguing the lack of a deal is costing billions in lost trade and holding back growth.
Ms Truss, a former Brexit opponent who has switched to becoming a supporter, said the deals with India and other allies are “our trade priorities” ahead of talks with Mr Biden at a United Nations summit today.
“There aren’t currently any negotiations taking place with the US and I don’t have an expectation that those are going to start in the short to medium term,” she told reporters flying with her to New York.
Mr Biden has stalled on trade negotiations and, vocally proud of his Irish heritage, has raised concerns about the impact of Brexit and the Northern Ireland Protocol on the peace process.
When Boris Johnson last visited the US as UK prime minister, Mr Biden downplayed the chances of a deal with the UK as he warned against tampering with the “Irish accords” amid a row over the postBrexit protocol.
Yesterday, Ms Truss named among her priorities the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), one of the world’s largest trading blocs which includes Australia, Canada and Japan.
The other the Prime Minister cited is the Gulf Co-operation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, and is the European Union’s sixth largest export market.
One of the issues facing today’s talks is Ms Truss’s threat to override parts of the Northern Ireland Protocol, which the EU says would break international law.
Senior figures in Mr Biden’s Democratic
party have warned a trade deal could be jeopardised by the UK single-handedly tearing up the agreement, which was part of the Brexit divorce deal.
Nick Thomas-Symonds, Labour’s shadow international trade secretary, said: “The admission that there is no prospect of a trade deal with the USA is terrible news for the UK economy – it is costing billions in lost potential trade opportunities and holding back growth.
“There is no doubt that the blame for this mess lies at the door of the Prime Minister, who tarnished the UK’s international reputation as Foreign and International Trade Secretary. This is an embarrassment for Liz Truss.”