According to sources familiar with the matter, the UK is reportedly planning to restart trade talks with the US, hoping to overcome President Joe Biden’s reluctance to engage in agreements that are unpopular with key American voters. The British officials are expected to privately lobby their American counterparts to reopen the dialogue during Biden's visit to Northern Ireland on April 11. Business and Trade Secretary Kemi Badenoch has been leading UK efforts to establish what the government hopes will be a trade deal in.
The UK government has been pushing for a deal that the ruling Conservative Party has touted as one of the most significant potential benefits of leaving the European Union. Talks had progressed during the administration of former US President Donald Trump, but Biden put them on hold after coming to power. UK officials have drawn up plans for a multi-stage roadmap that would address many of Britain’s priorities in reducing commercial friction, although it would likely fall short of a full free-trade agreement.
The first step would be a formal agreement covering areas that were mostly concluded in talks with the Trump administration, such as enhancing opportunities for small and medium-sized enterprises. The second would be to negotiate unresolved issues not related to market access. The final stage would be the most politically and technically difficult: negotiating market access and the reduction or removal of tariffs.
The UK will also propose more favorable terms for local businesses that could be impacted by Biden’s recent package of clean-energy subsidies and tax breaks in the Inflation Reduction Act. While the road map would likely fall short of a full free-trade agreement, it would address many of Britain’s priorities in reducing commercial friction.
UK Prime Minister Rishi Sunak and Badenoch hope that the Brexit agreement concerning Northern Ireland, which the Biden administration welcomed, will pave the way for trade talks to resume with the US, according to people familiar with their thinking. Relations between London and Washington had been tested by the UK’s recent standoff with the European Union over Northern Ireland. Sunak, who assumed office after his predecessor resigned in October, is keen to maintain momentum after recent successes in securing deals on immigration with Albania and France, passing a budget with minimal political fallout, and renegotiating some of the terms of Brexit.