Blog: What Could the New UK-US Trade Talks Mean for Great Britain?

One of the main areas of contention is likely to be the tariffs that are levied by each country. The UK wants assurances over minimal tariffs on products such as automobiles and food, while the US will continue to push for other concessions. Although both parties understand the fact that they are politically and economically close to each other, this does not guarantee that a UK-US trade deal will be struck. There is another issue in the form of EU regulations potentially clashing with US laws. This could result in further complications in the deal.

IMPLICATIONS FOR GREAT BRITAIN

Nevertheless, despite all complications, it is more than likely that the deal will go through. The two countries would want to iron out their differences and sign the deal as soon as possible. But what would be the implications of such a deal for Great Britain? Firstly, the new deal could help importers and exporters based in the UK. This is because they will be able to attain better access to the US market. Secondly, the deal is also likely to result in lower tariffs for UK exporters. This would help the trade industry that is already reeling due to the COVID-19 crisis.

Thirdly, companies in Great Britain could also face some new challenges in the form of more competition from US firms. UK-based firms that are focused on the domestic market would need to devise newer strategies in order to deal with the new competition. This may also result in a price war. Such a price war could prove to be beneficial for the customers but may eat into the profits of the corporations. Therefore, businesses based in Britain must be prepared for the times ahead.

Importers and exporters based in the UK could seek the help of industry experts in order to prepare themselves for the near future. Companies such as OCR Trade Management provide a range of specialised solutions that help traders in dealing with regulatory uncertainties.