EU chiefs could be issued a huge blow if a US-UK Free Trade Agreement (FTA) is secured – as German businesses might find relocating en masse to post-Brexit Britain incredibly profitable, said former Ukip MP Douglas Carswell.
This week, Britain and the EU kicked off the first round of talks on their future relationship. While the two sides are set for a big showdown – as they have starkly different views on what constitutes fair competition between their economies – a trade deal with the US appears to be a lot more straightforward. On Monday, International Trade Secretary Liz Truss launched the country’s five negotiating aims and announced talks will start in the next few days.
The 180-page document pledges to protect the NHS, maintain food standards, lower import taxes, or tariffs, on many UK exports – and increase trade in services.
It estimates that a deal with the US could boost transatlantic trade by some £15.3billion, and add £3.4billion to the UK economy.
Moreover, according to former Ukip MP Douglas Carswell, the FTA could also deal a huge blow to the EU – as German businesses might find relocating to post-Brexit Britain incredibly profitable.
He told Express.co.uk: “I think a US-UK free trade deal is pretty much lined up. There are vested interests on both sides.
“The reason why I think it is so straightforward to do is because I believe the basic approach that Donald Trump and Boris Johnson want is mutual standards and recognition.
“Meaning: If it is legal to buy something in Clacton, it should be legal to buy it and sell it in North Carolina.”
Mr Carswell added: “I am fascinated by this because one of the implications is that we could have an FTA with North America fairly soon.
“But there is an interesting question.
Imagine you are a German car manufacturer and you have already seen a 5 to a 7 percent decline in the European car market.
“But in a few years time, you realise that if you relocate your factory to Sunderland, you will be able to sell your Audis, Mercedes tariff free to the US.
“That is why I think a trade deal with the US is so important and so significant.
“Up until now the assumption on the EU side side has been that this is zero sum game.
“An economy of 65 million people against an economy of 500 million people.
”It is not.
“That’s not how trade works.”
According to Mr Carswell, Britain could strike an FTA with the US by November 2020 – a month before the end of the transition period with the bloc.
The talks with the US are expected to begin on Monday.
The discussions will take place in both the UK and US and be overseen by the Government’s chief negotiation adviser Crawford Falconer – formerly New Zealand’s chief negotiator and ambassador to the World Trade Organisation.