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UK and US trying to seal mini deal to reduce tariffs, says Donald Trump’s trade envoy

'We don't have a lot of time left,' says Robert Lighthizer

Ashley Cowburn
Political Correspondent
Thursday 17 December 2020 04:10 EST
Comments
(AP)

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Donald Trump’s trade chief has suggested the outgoing administration is negotiating with the UK to seal a mini-deal reducing trade tariffs, but insisted: “We don’t have a lot of time left”.

The US trade representative Robert Lighthizer said he was hopeful punitive tariffs on Scotch whisky could be lowered before the end of Mr Trump’s presidency.

The UK is seeking to negotiate a full trade agreement with president-elect Joe Biden, who will enter the White House in late January, though Mr Lighthizer suggested an interim deal could be brokered in the intervening time.

His comments came after the government announced it would unilaterally drop tariffs on US goods relating to the long-running Airbus-Boeing state aid dispute when Britain leaves the EU’s customs union at the end of the Brexit transition period.

Lis Truss, the international trade secretary, said last week the move was to “de-escalate” the trade conflict with the US and “come to a negotiated settlement so we can deepen our trading relationship with the US and draw a line under all this”.

Speaking to the BBC, Mr Lighthizer said: “I’m talking to [International Trade Secretary] Liz Truss, about trying to work out some kind of a deal ... I'm hopeful we can get some kind of an agreement out you never know, we don't have a lot of time left.

“We have the advantage in that both the US and the UK - particularly the current government of the UK - are not big subsidisers, where some other countries are more inclined to subsidise. So it would be helpful if we could come to some kind of agreement. We are in discussions, we’ll see how that works out.”

The move to drop retaliatory tariffs on the US imposed by the EU after Brexit was interpreted as an olive branch to the incoming president Mr Biden, whose administration will be in charge of negotiating a future trading agreement with the UK.

On a future partnership, Mr Trump’s trade representative added: “I think it’s extremely likely we have a free trade agreement with the UK before long. I feel comfortable about that.

“There are serious issues that we have to worry about, we have agricultural issues, we have standard issues, there are a lot of things that are tough compromises that have to be made. Those are things that tend to come towards the end of a negotiation.

“On the positive side we’re both leaders in the world on digital services, on financial services, and I think we can do an awful lot to write the rules together. When will this happen? Obviously our election has an impact.”

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