May 15, 2020

UK plans to slash US agricultural import taxes

To advance further on a free trade agreement, the UK is planning to reduce tariffs on agricultural imports from US, the Financial Times reported on Thursday.

The Department for International Trade was considering a "big concession package" to negotiators from the US over the coming months to cut the cost of certain agricultural imports, according to government officials.

The package has been led by UK Trade Minister Liz Truss, but is facing internal opposition from Environment Secretary George Eustice who has raised concerns that such a step could undercut UK farmers, the report added.

Concerns about such tariff cuts have also been raised by officials at the Department for Food, Environment and Rural Affairs, according to the report.

Last week, the US and Britain launched formal negotiations on a free trade agreement, vowing to work quickly to seal a deal that could counter the massive drag of the coronavirus pandemic on trade flows and the two allies' economies.

The talks, to be conducted virtually, will involve over 300 US and UK staff and officials in nearly 30 negotiating groups.

Agriculture was expected to be among the thorniest issues in the talks, given strong British opposition to US genetically modified crops and antibacterial treatments for poultry.

Trade in goods between the US and UK was valued at US$127.1 billion in 2018, with the two sides roughly in balance, while the services trade topped US$134.8 billion. Britain is the seventh-largest US goods trading partner, after South Korea, according to the US Census Bureau.