London (Parliament Politics Magazine) – Stephen Moore, a senior economic adviser to President-elect Donald Trump has suggested that Britain prioritize trade agreements with the US rather than seeking close ties with the European Union.
During an interview with BBS Radio, Stephen Moore criticized the European Union’s economic framework calling it a “socialist model”. He suggested the United States would show less interest in pursuing a free trade agreement with the UK if the British government prioritized its economic ties with the EU over its relation with the US.Â
His remark’s timing is significant, as Sir Keir Starmer is under pressure over his stance on future trade agreements with Washington and Brussels. While some have advised the Prime Minister to pick a side in the ongoing trade talks between the US and the EU, others believe that he can negotiate deals with both major economic powers.
Moore said during the interview, “The UK really has to choose between the Europe economic model of more socialism and the US model, which is more based on a free enterprise system”.
“And I think the UK is kind of caught in the middle of these two forms of an economic model, and I believe that Britain would be better off moving towards more of the American model of economic freedom”.
“And if that were the case, I think it would spur the Trump administration’s willingness to do the free trade agreement with the UK, I think it would make sense for both Britain and the United States”.
In response to the question asked by the interviewer, Mr Moore said the White House for the US-UK free trade deal is open “yet to be determined” because some advisors of the President are in favour and some not, adding “So I think that will be an internal debate within the new White House.”.
He stated that Donald Trump would likely employ tariffs as a negotiating trick to start trade discussions.
The interviewer asked if the UK could find a potential way to avoid tariffs of 10 to 20% on all imports to the US, and he replied, “I do think we have a special relationship with Britain, and I think most Americans, I think Donald Trump … view Britain in a very different way than, certainly from China or other countries that we view in a more adversarial way”.
Chancellor Rachel Reeves has firmly dismissed the possibility of accepting chlorine-washed chicken as part of any trade deal with the US.
Mentioning the United States-Mexico-Canada Agreement which has been approved under Trump to exchange the North American Free Trade Agreement, Moore said “We have a US, Mexico and Canada trade deal. So, it’s certainly possible that with this uniform tariff that he’s talked about, that because of our special relationship with our North American neighbours, that we might exempt them. So your question is, might we exempt Britain? Maybe, I don’t know the answer to that”.
On Tuesday, Peter Mandelson, reportedly the next British ambassador to Washington, told The Times that the UK “must have our cake and eat it” by forging strong trade ties with both the US and the EU.
Peter added “We cannot come out of the largest export market, difficult enough as it is to trade freely there, having left the European Union. But we still trade. It’s our biggest export market still. We can’t leave that”.
“And we have to mitigate the sort of barriers and risks that we’ve taken on as a result of Brexit in the European market. And transatlantic trade and investment is huge for us”.
The former chief economist of the Bank of England, Andy Haldane raised similar concerns, stating that the UK government has an opportunity to signal that the country is “open for business” at a time when the EU and the US are focusing inward.