REVEALED: The numbers that show it is ‘vital’ for EU to seek good trade deal with Britain
EUROPE has a “vital interest” in securing an open and wide-reaching trade deal with Britain because of its pivotal role in trans-Atlantic trade and investment, a landmark report concludes today.
By NICK GUTTERIDGE, BRUSSELS CORRESPONDENT
PUBLISHED: 09:00, Sat, Mar 18, 2017 | UPDATED: 12:02, Sat, Mar 18, 2017 AmCham ambassador: Stable Brexit is in everyone's interests
Economic experts said Brussels would be foolish not to seek favourable terms with the UK, which is by far the biggest focus for American economic interests on the continent.
Britain accounts for an astonishing 22 per cent of all US investment in Europe - which includes non-EU states like Switzerland and Russia - a whopping 10 times greater than France and Germany. GETTY
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And it is the top destination for both trade and investment flowing across the Atlantic, with most US businesses choosing Britain as their main base in Europe.
A report by the American Chamber of Commerce (AmCham) concludes that Brexit could put this status under threat, but says it would be in the best interests of America if the UK and EU seal a comprehensive trade deal. GETTY
The US has an interest in seeing Britain and the EU seal a trade deal
Donald Trump has already said that he wants to sign a commercial agreement with Britain now that it is leaving the bloc, at the same time as ditching negotiations on the controversial TTIP pact with Brussels.
But eurocrats are keen to stall the issue of trading links between Britain and the continent, and are set to seek a narrow mandate for the Brexit talks which prohibits it being discussed.
The AmCham report, authored by experts Daniel Hamilton and Joseph Quinlan, warns that a trade agreement could take six years to complete and that transitional measures will be needed in the meantime.
It lists a series of impressive figures underlining the huge depth of the economic relationship between the US and the UK, but warns that much of this growth has been built on Britain’s role as a “gateway” to Europe. MP Gisela Stuart squashes fears of no post-Brexit trade deal
As Brexit proceeds, the US, UK and EU each have a vital interest to ensure that all three legs of the transatlantic stool remain strong and sturdy
AmCham report
The authors write: “As Brexit proceeds, the US, UK and EU each have a vital interest to ensure that all three legs of the transatlantic stool remain strong and sturdy.
“The United Kingdom is a critical economic partner for the United States and the US should ensure that bilateral ties are strengthened, rather than disrupted, by Brexit.”
But they warn: “America’s significant commercial and financial presence in the UK has been premised in large part on UK membership in the European Union - the largest, wealthiest and most important foreign market in the world to US companies.
“The EU will want to ensure that a US-UK agreement, as well as any separate arrangements it may advance with the US and with the UK, will enhance its own economic ties with two of its most significant economic partners.” Top 10 trade partner prospects for the UK moving forward
Thu, February 16, 2017 These are the top 10 trade partner prospects for the UK moving forward
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The experts say that a trade deal between the US and the UK should be sealed quickly afterBrexit, and add that London will also find it easy to agree with Brussels on tariffs covering the trade in goods.
But they warn the issue of services, including the passporting rights so treasured by the City, will be much more difficult to reach a compromise on and US firms could choose to move to Dublin or Frankfurt as a result.
However, the sheer scale of the business being done between the US and the UK will be used by Brexiteers to demonstrate how Britain can forge a new economic role for itself after leaving the EU.
In 2015 the US exported a staggering $123.5bn in goods and services to the UK whilst it imported $111.5bn from Britain - one of the precious few trade surpluses it enjoys in Europe.
And levels of investment between the two old allies were even greater, with US foreign direct investment in the UK reaching a record $593bn in the same year, whilst UK money flowing in the other direction totalled an impressive $483.8bn.
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