Why ÐßÐßÊÓƵ is Supporting the Trade Negotiations
CEO Update – July 2020
Duncan Edwards
Chief Executive Officer
ÐßÐßÊÓƵ
If you believe, like we do here at ÐßÐßÊÓƵ, that reducing financial and technical barriers to trade and investment is a fundamental driver of growth (and the historic evidence for this is overwhelming) then you will be rooting for a successful outcome for the negotiations going on now between the U.S. and the UK.Ìý There is a short, three question surveyÌýÌýwhich we would love you to complete.Ìý
Two rounds of negotiations, all conducted virtually, have been completed so far, building on the preparatory work that was done by the Trade and Investment Working Group while the UK remained under the constraints of its EU membership, and a third round is likely to be scheduled towards the end of July.Ìý Reports that we have had directly from the principals in the negotiation suggest that there has been good progress across a range of issues and asÌýourÌýanalysis back in March predicted, there is a lot of common ground.Ìý Inevitably though, there are going to be areas where agreement is going to be difficult and a handful where the outcome is likely to be binary with limited shades of grey.Ìý
To get aÌýgood sense of the U.S. approach you should read thisÌýÌýin Foreign Affairs by Ambassador RobertÌýE.ÌýLighthizerÌýwho leads theÌýUnited States Trade Representative (USTR),Ìýwhich negotiates trade issues on behalf of the U.S. Administration. His ‘middle ground’ approach between completely unfettered free trade and the highly protectionist practices of the past won’t satisfy purists on either side of the argument but does make it clear where the administration stands.ÌýItÌýisÌýalsoÌýa good reminder that the U.S.Ìýthroughout history has been wary of supra-national organizations,Ìýespecially when they are seen to encroach on judicialÌýsovereignty.ÌýMuch of the argument in the piece focuses on the impact of trade agreements on domestic workforces whose jobs are outsourced to lower wage economies.Ìý This is an issue that the UK is as familiar with as the U.S.Ìýand should not be a point of conflictÌýbetween the twoÌý(other than in the context of rules of origin).Ìý
It is hard to judge whether an agreement will be reached; setting aside those hard,Ìýbinary questionsÌýaround market access forÌýagrifood,Ìýregulatory standards andÌýdata protection,Ìýthere is a U.S. election coming and a possible change in administration.Ìý As Amb.ÌýLighthizerÌýmade clear a week or so ago, the chances of getting an agreement in place before then areÌýremote.Ìý
At ÐßÐßÊÓƵ we willÌýcontinue to support the negotiations in any way that we can.Ìý Over the last month we haveÌýheld a series of five round table discussions with UKÌýMinister for Trade Policy,ÌýGreg Hands, focused on different regions of the U.S. in partnership with the local chapters of theÌýBritishAmericanÌýBusiness Network.ÌýÌýWe have also had regular detailed read-out sessions for our Policy Group members fromÌýboth the U.S. and UK negotiating teams.ÌýWhereverÌýwe can,Ìýwe willÌýprovide constructive input into the big questions of substanceÌýand continue to remind the business and wider community why thisÌýmatters;Ìýour paper,ÌýBuilding on a Solid Foundation,Ìýshows real world examples of trade and investment in actionÌýandÌýimpact in terms of jobs created and livelihoods secured thatÌýare the result.Ìý
To many companies it may feel thatÌýthe existing rules around the world’s most valuable economic corridor areÌýalready open enough and that any improvements will only be marginal.ÌýÌýAfter all,ÌýtradeÌýand investment between the U.S and UK is world-beating.ÌýIn someÌýcases,Ìýthis may well be true,ÌýbutÌýa trade agreement will codify and enshrine theseÌýfreedoms in a treaty which willÌýgive even more certainty to the business community.Ìý But in other areas, digitalÌýand servicesÌýtrade,ÌýÌýregulatory coherence and mutualÌýrecognition,Ìýcustoms facilitation and labor mobility,Ìýthere is much that can be done toÌýturbo-chargeÌýthis economic relationship…Ìýand we will need this toÌýrecover the ground lost in the health and economic crisis that has hit us.Ìý
Aside from the focus on trade, our work bringing people together to talk about the issues of the dayÌýhas not missed a beat.Ìý In the past month we haveÌýcovered the latest advice on re-opening offices with Cushman and Wakefield,Ìýemployers legal risk during the COVIDÌýCrisis with Pillsbury,ÌýhowÌýPurpose is becoming the definingÌýcultural identifier for companies withÌýBrandPie,Ìýthe latestÌýimmigration and mobility advice with Fragomen and a dissection of U.S.Ìýand UK economic policy withÌýBloomberg.ÌýÌýÌý
And finally, a huge thank you to all of our members for your ongoing support; we know that these are challenging times andÌýwe will strive to ensure your commitment to us isÌýrecognized with a high quality program of events for you and colleagues toÌýengage with. All feedbackÌýwelcome!Ìý
