Washington officials hope to tie London into a trade deal that would make it harder for China to extend its influence as the United Kingdom and the United States begin talks on Tuesday.
Boris Johnson’s government has made no secret of its desire for rapid trade deals as the U.K. finds a new place in the world after leaving the European Union.
And as tensions rise with China and with months of economic gloom ahead, officials in Washington see an opportunity to score a win over Beijing’s expansionism.
The Office of the U.S. Trade Representative says it wants to be able, under the deal, to act if the U.K. strikes free trade deals with “non-market countries,” restricting London’s ability to negotiate with Beijing.
A former administration official familiar with current thinking said the coronavirus crisis made it more important than ever to secure trade deals and build a united front against China.
“It’s clear that China is more determined than ever to move Europe into its column,” he said.
“A trade agreement with the United Kingdom, locking in trade relations, would serve as the tip of the spear in pushing back China’s attempts to co-opt Europe.”
U.S. Trade Representative Robert Lighthizer will hold a video call with Britain’s international trade secretary on Tuesday. Each will be joined by about 100 of their officials.
Washington wants Britain to drop regulations on imports of food and agricultural products and provide full market access for American pharmaceutical products, both of which could be politically difficult among Britons who fear a reduction in food safety standards and a squeezing of their public healthcare system.
The Trade Representative’s office set out its objectives last year, saying that any trade deal should “provide a mechanism to ensure transparency and take appropriate action if the U.K. negotiates a free trade agreement with a non-market country.”
The USMCA, a deal between the U.S., Canada, and Mexico signed by President Trump in January, included a similar provision designed to prevent state-subsidized Chinese companies from gaining a foothold in the American economy via its trading partners.
Cementing alliances with trusted partners such as the U.K. is even more important now, said the former official.
“Now, it’s more important than ever that we build an alliance, a united front to oppose China’s bid to take over the world,” he said. In that respect, the trade agreement with the U.K. takes on more importance.
It comes as Washington heaps pressure on China for its role in the early spread of COVID-19. Trump said last week that he was considering punitive measures, and officials are thought to be exploring whether the U.S. can sue China for damages.
Britain left the EU in January. It is negotiating trading terms with economies around the world as it replaces umbrella deals drafted by the EU.
A spokesman for Johnson confirmed that two weeks of talks will begin on Tuesday.
“We want to strike an ambitious free trade agreement with our biggest single trading partner,” he said.
The first round of discussions will cover trade in goods and services, digital issues, and support for small- and medium-sized companies.
British foreign secretary Dominic Raab said: “This week, work begins on a free trade agreement that can help steer our two great economies out of the downturn.”
Britain hopes U.S. negotiations will ratchet up pressure on the EU over Brexit trade talks, which are stalled over how to treat fisheries and how to ensure “level playing fields” to prevent unfair competition. Failure to agree to terms, or at least an extension, by the end of the year will bring new tariffs and trade barriers into force.
Theodore Bromund, senior research fellow for Anglo-American relations at the Heritage Foundation, said both sides were keen to move swiftly but that most of the urgency came from the U.K., which only published its negotiating principles two months ago.
“Now, in spite of COVID, we are already pressing ahead towards virtual negotiations,” he said. “I think that there is an enormous incentive on the U.K. to negotiate as rapidly as possible, partly for political reasons in the United States but also because you have this deadline at the end of the year with the U.K.-EU negotiations.”
