Leading the Way with a US-UK Free Trade Agreement
25 Pages Posted: 2 Nov 2018
Date Written: October 30, 2018
A US-UK free trade agreement would boost the economic welfare of both nations. For the people of the United Kingdom, the agreement would enhance export opportunities to the world’s largest consumer market and expand their access to globally competitive goods and services. For British leaders, it would partially offset the economic loss from exiting the European Union’s common market. For Americans, the agreement would eliminate remaining trade barriers to international trade with the world’s fifth-largest economy, while deepening commercial ties with America’s no. 1 partner in services trade and foreign direct investment. The most promising benefits from a US-UK agreement include elimination of duties on all agricultural and manufactured products, including automobiles; the liberalization of services trade, including financial services; and the freer movement of labor between the two nations. The free trade agreement should be a high priority for both nations once the United Kingdom exits the European Union in March 2019.
Keywords: United States, United Kingdom, Brexit, free trade agreement, exports, foreign direct investment (FDI), immigration, duties, services trade, agricultural trade, digital trade
JEL Classification: F13, F42
Suggested Citation: Suggested Citation