Cleverly talks down hopes of US trade deal on Washington trip
Foreign secretary James Cleverly has talked down hopes of a UK-US trade deal during a visit to Washington DC.
Speaking in the US on Tuesday, Cleverly said the government was not “prioritising” a free trade agreement (FTA) but aiming for “real economic coordination” with the superpower.
His comments came at a press conference with US secretary of state Anthony Blinken, where the two men discussed Ukraine, China and the Middle East.
Cleverly told reporters: “We are not prioritising an FTA with the USA because there are many areas where we can work more closely, more collaboratively, have real economic coordination that does not require that traditional tariff reducing elements of an FTA.”
He added: “FTAs are often used as a shorthand for closer economic partnerships.
“The UK is seeking to build an economic alliance which protects the interests of the USA whilst simultaneously protecting the UK’s interests.”
Blinken was asked about concerns allies might feel the US’ Inflation Reduction Act (IRA) is “protectionist”.
Biden’s 2022 law is a federal legislative package that aims to cut rising prices by reducing the deficit and investing in domestic energy production and clean energy.
“Our primary focus was ensuring we’re making appropriate investments to make sure we can deliver when dealing with the climate crisis,” Blinken said. “I think it offers the prospects for a collective race to the top.”
He said the law marked a “historic commitment” to tackling climate issues, with a “broader intent” to work with global partners “to build the strongest possible collective infrastructure, supply chains, and ecosystem to produce those technologies”.
“I think there are profound benefits for many of our partners around the world,” he said.
Negotiations on an FTA with the US began in May 2020, but the House of Commons says there is no current deal and “an agreement is not expected soon”.
The visit came as Chancellor Jeremy Hunt is in Japan for the G7 finance ministers meeting, and investment minister Dominic Johnson is in Hong Kong on a trip, which sparked criticism.