Under a new U.K-U.S. deal, businesses could benefit from reduced tariffs, common standards and increased investment. Critics have cautioned though that the U.K. will begin negotiations on the back foot given its reliance on EU trade negotiators over recent decades, leaving U.K. businesses vulnerable to takeovers by U.S. firms.
“The US has many of the world’s toughest trade negotiators, whereas the UK has ceded policy and knowhow to the European commission for decades,” Adam Marshall, director general of the British Chambers of Commerce, wrote in the Observer on Sunday. “If talks began on a U.S.-U.K. deal over the coming months, I know which of the two I’d put my money on.
“There is a huge risk that UK-based firms will continue to face higher upfront costs and regulatory requirements after any agreement, leaving them at an instant disadvantage to U.S. competitors that would suddenly have wider scope to compete in and buy up chunks of the U.K. market.”