WASHINGTON is poised to drop punitive tariffs on British steel today as ministers look to a trade deal before the next election.
International Trade Secretary Anne-Marie Trevelyan said last night that Joe Biden “definitely” changed the approach that put negotiations on the back burner when he entered the White House.
In an interview with the Daily Mail, she said that after his administration’s lack of desire to make a deal in January 2021, his administration was “nailed” to the idea.
British Secretary of State for International Trade Anne-Marie Trevelyan arrives for a press conference at the Port of Baltimore, Monday 21 March.
Ms. Trevelyan, who is on a two-day visit to Baltimore, believes formal negotiations on an agreement could begin by the end of this year and are expected to be completed within 18 months.
To stimulate trade between the two countries, the US is expected to agree to lift tariffs on British steel and aluminum exports that have been in place since 2018.
In return, the UK will eliminate retaliatory duties on American brands such as Harley-Davidson. The trade dispute was a longstanding thorn in the side of the two allies.
American motorcycle manufacturer Harley-Davidson has been hit by tariffs in the UK in response to steel tariffs, which are now set to be cut.
Under Donald Trump, the US imposed a 25% duty on foreign steel and a 10% tax on foreign aluminum.
Last year, Washington agreed to cut tariffs on such imports from the EU.
Mrs. Trevelyan said she “started” and that the US listened.
She added, “I came in just before Christmas and pointed out that it wasn’t normal that they were still hanging over us.”
The Secretary of Commerce is meeting with her US counterparts, Trade Representative Catherine Tai and Secretary of Commerce Gina Raimondo, as part of a special conference in Baltimore on the future of Atlantic trade.
She described the meeting as a fantastic next step, discussing “the smallest details” of what’s important to both sides before starting formal talks.
Ms Trevelyan said there was “really positive energy” around the talks now, and that the crisis over Russia’s war in Ukraine had highlighted the closeness of the two sides.
“Last month, we worked hand in hand with the US to look at sanctions. So I’m very optimistic,” she added.
The secretary said that when she was appointed last September, there was “no desire” in the White House to make a trade deal, but things have definitely changed.
She added: “The Biden team has reached out to us and wants our trade teams to talk in more detail about issues that are important to both of us.”
Ms Trevelyan believes the two sides will soon begin official talks on a trade deal that is “much bigger and bigger than anything else” that has been struck before.
“This is the first point of crystallization of the next step… I will be very happy if we can start them by the end of the year,” she said, adding that negotiations could move at an accelerated pace.
The Minister added: “Can it be done in a year? Possibly, but I would think that 18 months is probably realistic when a person earns. But it depends on the vagaries of politics and political life.
Metallurgists hold banners and flags during a protest in Parliament Square on March 15, 2022 in London. The Community Union has long campaigned to save the British steel industry.
The UK has also begun talks with individual states including Indiana, Oklahoma, North Carolina and South Carolina on mini-trade agreements, the first of which is expected to be signed within a few months.
This will not reduce tariffs on imports or exports, but it will eliminate bureaucratic red tape – for example, by making it easier for professionals to work between these states and the UK.
Ms. Trevelyan yesterday visited the port of Baltimore, where 10 per cent of incoming cargo comes from the UK.
During the trip, Ben Cardin, a Democratic senator from Maryland, urged the Biden administration to continue negotiations on a trade deal with the UK.
He said: “Sometimes we have different views on which countries we should move forward with regarding our trade talks, but I can tell you that there is strong support in the US Congress for the United States and the UK. United States to strengthen ties between our countries.
“You are a great partner in many ways. Now we are in this battle to save democracy in regards to [Vladimir] Putin’s invasion of Ukraine, now more than ever it’s important that we unite the free world.”