Trade talks with the US will be tough and compromises will have to be made
The Chancellor’s pledge to “defend Britain’s interests” during trade talks with the US is all well and good but it is easier said than done. Britain doesn’t have many levers when it comes to trade negotiations with a superpower like the US.
So far all that the Government has done is fall into line and accept the tempestuous policies of the US.
While it is not good diplomacy to unnecessarily rock the boat, there will come a time when British negotiators have to stare down their US counterparts. The Government needs to remember that selling British farmers and manufacturers short would not be acceptable amongst the public.
And farmers are understandably nervous about the future, given the Government’s track record thus far. The family farm tax and solar farm policy have eroded the little confidence agricultural communities had in the Labour Government.
It isn’t just farmers that will be watching on with bated breath as trade talks take place. Other sectors such as whisky distilleries are also nervous about the new global trade environment they find themselves in.
While the Government should do whatever it can to protect British interests, it would be facile to say that there should be no compromise. There will have to be some give and take, especially with the might that the US wields.
So far, Sir Keir Starmer and his Government have navigated the new tumultuous global order deftly. But the Government will need to brace itself for turbulence. As well as seeking to make progress on a US deal, Ms Reeves is also expected to discuss improving trading relations with other nations. The importance of this cannot be overlooked.
There are no shortcuts to strengthening Britain’s hand as an economic force. The country needs to be competing in markets across the world.