Froman: Too early to start trade talks with the UK

U.S. Trade Representative Michael Froman made clear on Monday that it is too early to enter into formal trade talks with the United Kingdom while Brexit negotiations are pending. 

Froman told Liam Fox, Britain’s new trade secretary, that separate trade talks can’t be advanced until some basic issues around the future of the United Kingdom’s relationship with the European Union have been settled, according to a USTR readout of the meeting in Washington.

{mosads}While talks are on hold, Froman said the United States is prepared to hold discussions with Britain about how to best develop the trade relationship and the appropriate time to start those talks. 

Froman and Fox also discussed how the United Kingdom will define its future relationship with the European Union and the effect of those discussions on other trading relationships, including with the United States.

Fox stressed the importance of close cooperation because of longstanding economic partners.

Before Congress left for the long summer recess, Senate Finance Committee Chairman Orrin Hatch (R-Utah) and House Ways and Means Committee Chairman Kevin Brady (R-Texas) introduced a resolution calling on the United States to quickly start trade talks with the United Kingdom. 

Brady and Hatch also called on following through with the conclusion of a Transatlantic Trade and Investment Partnership (TTIP).

President Obama and other White House officials previously have said that a bilateral deal with the United Kingdom would be tough to get going because they expect that British leaders will be tied up for the next couple of years with forging an agreement to leave the EU.

Froman also said that the United States is evaluating the effect of the United Kingdom’s decision to leave the European Union on the TTIP negotiations, which the United States and the EU want to complete this year, although that target is expected to slip after Britain’s vote to leave the EU. 

In another conversation with Fox, Commerce Secretary Penny Pritzker said that the Obama administration is “firmly committed” to the completion of the TTIP this year.

She asked Fox about Britain’s plans to pave a steady path forward with minimal disruption to the global economy.

Earlier this month, Pritzker traveled to Europe for meetings with U.S. executives in London about Brexit to discussion their concerns.