Two of the world’s most politically battered economies, the Brexit-maimed UK and the Trump-addled US, have made a deal on trade. The deal looks more like a restaurant bill than a major step in any direction for either party.
This deal is literally just a 6 bullet point list that fits nicely into a paragraph, see this link for details.
A critique is in order.
Britain can now export 100,000 cars to the US at lower tariffs for some vehicles. You’d think Santa Claus had arrived early. The media is beating up this deal ad nauseam. Most British cars are manufactured under license from foreign makers. 100,000 vehicles is barely a teaspoon in the US market with its high turnover.
British steel is now tariff-free. The much shrivelled and shrunken British steel industry is no doubt in raptures. It doesn’t have anything like the production capacity to make any sort of impression in the US market.
The UK is expected to buy $10 billion worth of Boeing aircraft “in return” for tariff-free exports of US plane parts to Britain. It’s anyone’s guess how this equates to any sort of positive deal for Britain.
There will be “reciprocal” access for beef between the US and the UK. It’s a matter of opinion whether either market can afford beef at retail prices.
There will be “further talks” on pharmaceuticals. The decaying carcasses of the UK and US health sectors and their murderous domestic environments apparently aren’t under consideration for relief for the users of these pharmaceuticals. They need more than a slightly cheaper aspirin.
This triumphant farce is supposed to be the epitome of top-level international trade negotiations. Trump needed to make a deal with someone to shore up the damage from the tariffs. Starmer needed to make a deal with anyone because Brexit has effectively crippled British trade. These lip service level terms of trade don’t really make that much of an impression.
Compare this ludicrous situation to the hyper boom times when both Britain and the US dominated their markets. The US and UK are dying by inches, documented by press releases. Both have been politically suffocated in terms of trade.
Even in the 19th century, these trade arrangements would have seemed absurd at best. The solution is to get these geriatric gargoyles out of trade. That’s not likely to happen anytime soon.
It’s like Granny has returned at gunpoint from the grave and left a postcard in the ruins.
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Disclaimer
The opinions expressed in this Op-Ed are those of the author. They do not purport to reflect the opinions or views of the Digital Journal or its members.
