British trade negotiators have been exceptionally busy this week. They are in formal talks with both the EU and the US, and on Wednesday the trade secretary, Liz Truss, announced negotiating objectives for talks with Japan.
But what deals does Britain already have, and what will happen if it does not conclude an agreement with the EU by the end of the year?
So Britain – at least on current trade terms – has more to lose from the failure of the EU talks than it has to gain from the success of the US talks. But it would also be wrong to imagine that Britain could just turn its back on Europe and conduct all its business with the US instead.
The UK imports a large amount of fresh food, particularly from the Netherlands. Currently this produce can be shipped to Britain quickly and lorries carrying it pass directly through ports with minimal bureaucracy. Increased customs procedures and tariffs would make this trade more difficult, and getting fresh lettuces across the Atlantic has its own challenges.
Currently, Britain’s trade with the US has a very strong services component. Trade in services (such as financial and legal services) are relatively unaffected by customs procedures or tariffs, but can be affected by mutual recognition of standards and qualifications. A beneficial deal with the US might therefore look quite different from a beneficial deal with the EU.
Sources: Trade deals from the Department for International Trade. 2019 trade figures from the ONS.