Thursday, September 23, 2021

NAFTA2 NOT FOR YOU
Boris Johnson plays down hopes of Britain joining US-Mexico-Canada trade pact after backlash

Boris Johnson insisted that Joe Biden ‘will be there’ on a trade deal eventually, despite the president showing little sign of interest in an agreement




By Hugo Gye
Political Editor
September 23, 2021 

Boris Johnson has played down the prospect of Britain joining the US-Mexico-Canada (USMCA) trade deal as a replacement for stalled talks with Washington on a bilateral deal.

Labour accused the Government of an “utterly farcical” policy as No 10 insisted the US negotiations were still alive despite some of the Prime Minister’s allies pushing for an alternative plan.

But Mexico opened the door to the USMCA proposals, with a senior politician involved in negotiating the pact saying it would be possible for Britain to take part as the fourth member at some point in future.

Asked during their White House meeting on Tuesday whether a UK-US trade agreement was possible, Joe Biden said only: “We are going to talk about trade a little bit today, we are going to have to work that through.” He has effectively suspended all bilateral trade talks after taking over from Donald Trump.

The Government is considering applying for USMCA if it becomes clear that the negotiations with Washington will not restart. However, Mr Johnson said: “We are focussed on our bilateral relations. Trade with the United States is growing the whole time, very fast, and that is fantastic – but that doesn’t mean we couldn’t do even more, and we have got to focus on that.”

He insisted that the current President is a “deal maker” and added that “America will be there” on a trade deal eventually, but added that amid a tough fight on domestic infrastructure funding “he can’t load up his political plate much more”.

Labour’s shadow Trade Secretary Emily Thornberry accused the Government of a U-turn, saying: “Within the space of 24 hours, Boris Johnson has taken us from first in line to the back of the queue for a US trade deal, briefed reporters in Washington that we were seeking to join the USMCA instead, and now decided to ditch that idea as well, presumably after someone bothered to read the agreement and realised what it would mean for food standards and the NHS.

“It is an utterly farcical way for the Prime Minister to carry on when representing our country abroad, and a shambolic approach to running the UK’s trade policy.”

Kenneth Smith Ramos, who was Mexico’s chief negotiator for the USMCA, told Bloomberg News it would be harder to join the deal from outside than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), but still possible. He said: “Although there isn’t a specific accession clause as there is in the CPTPP, the Free Trade Commission of the USMCA could agree to enter into negotiations with a third party.”

A UK Government source said the idea of joining the pact has “been talked about in trade policy circles for a long time”, but added: “It’s not something we’re actively exploring.”

Experts also said it would be at least as difficult as a bilateral deal with the US, as America’s demands would be the same while Canada, for example on pork exports, and Mexico, on sugar, would be looking to negotiate better terms than they currently have with the UK.

Liz Truss, the new Foreign Secretary, is travelling to Mexico on Thursday to open the new UK embassy and speak to her Mexican counterpart. She said: “Closer ties with Mexico are a key part of our plan to strengthen economic, security and diplomatic links with like-minded allies who share our belief in free enterprise and free trade.”

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