Issues that could hinder UK-U.S. trade deal

U.S. President Donald Trump and outgoing British Prime Minister Theresa May hold business talks during Trump’s state visit to Britain in June 2019


National Health Service 
U.S. wants its companies to be allowed to bid for NHS contracts, and raise prices NHS pays for drugs. UK is fiercely resistant and could exempt NHS from negotiations, but this may limit what Washington is
prepared to offer

Public procurement
Buy American Act is roadblock for any potential trade partner, requiring federal, state and local authorities to buy U.S.-made products whenever possible. Washington is unwilling to negotiate, and cannot override laws of individual states

Industrial goods
Import tariffs between pre-Brexit UK and U.S. are typically low, but U.S. will demand reduction or removal of 10% levy UK applies to U.S. car imports. Washington also likely to want reduction on tariffs applied to clothing and textiles

Farm products
U.S. is net exporter of farm products, mostly meat and animal feed. Would want UK to adopt U.S. farming standards – hormone-treated beef and chlorine-washed chicken – banned in EU. May urge UK to incorporate GM products in human food

Financial services
U.S. banking is regulated at federal and state levels – Washington negotiators would struggle to open
this up. EU tried unsuccessfully to incorporate financial services into Transatlantic Trade and Investment Partnership (TTIP)

Current trade
UK ran trade surplus for goods with U.S. from 2014-16, but flipped to deficit in 2017-18. This might
improve bargaining position with administration focused on cutting its trade deficit. UK has large
surplus in services sector


U.S. Treasury clause means securing trade deal could cramp UK’s ability to seal deal with China – world’s second largest economy


Sources: Reuters, Eurostat 
Picture: Associated Press
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