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The importance of Britain’s trade with the United States cannot be underestimated.
A long-sought free trade deal is elusive despite the best efforts of former business secretary and now Conservative leader Kemi Badenoch.
The debate in Britain has foolishly focused on minor issues such as American chlorinated chicken. This totally misses the point.
We must never forget that the United States is Britain’s largest trading partner. Trade with the 27 EU countries is greater in volume.
Less recognized is data from the US Bureau of Economic Analysis, which shows that the UK has been and remains the US’s largest trading partner in exports and imports of services. The United Kingdom also leads the way in digital services and those provided by multinational companies.
Shakeup: Donald Trump has said he wants to impose tariffs of between 10% and 20% on the rest of the world outside of China. The president-elect aims to impose a 60% tariff on China
UK Trade & Investments says the United States is not only Britain’s largest trading partner, it is also among the countries in the world with which we have a trade surplus.
It went from £35.6 billion in 2014 to £41.4 billion in 2016, the year of the Brexit referendum, to £71.4 billion in 2023.
Interestingly, Washington also claims a surplus explained by measurement, timing, and monetary differences.
The “special relationship” is often disparaged as a political construct. It is indisputable that when it comes to economic links, those between the UK and the US and the City and Wall Street could not be closer.
The main American investment banks – Goldman Sachs, JP Morgan and Morgan Stanley – run their European and some global operations from London.
Britain has the most to lose or gain if Donald Trump succeeds in his effort to impose tariffs of between 10 and 20 percent on the rest of the world outside China. The president-elect aims to impose a 60 percent tariff on China.
Given the importance of the US market to British trade and vice versa, it makes little sense for Keir Starmer to join Emmanuel Macron and Brussels in negotiating a tariff deal with Washington.
This is especially true because the fate of most services trade, where the UK dominates, falls outside normal trade agreements.
The Government, with its open support for Kamala Harris in the US elections and its contempt for Trump, has not helped itself in seeking a repeal of the next White House.
Britain can take solace in other truths. What is said in a campaign (think the increase in the national social security tax and the pro-business agenda) does not necessarily remain intact in government.
Additionally, Congress may not be very enthusiastic about trade barriers, which means higher consumer prices.
Small mercies are expected here.
incisive defense
Acquisition speculation has done wonders for Burberry’s battered shares over the past month. They were up 17 percent, but still down 45 percent this year.
Would-be buyer Moncler, a distant cousin of luxury giant LVMH, is dismissing speculation about the bid and, given the scale of the share price movement, Burberry would be forced to tell shareholders if there had been an approach.
A lot depends on CEO Joshua Schulman when he reveals first-half results on Thursday. Revenue is expected to have fallen by 20 per cent and losses are estimated at £45m.
Schulman must be given time. It is unthinkable that a brand so associated with Britain and its distinctive culture of rural life would disappear into the hands of an expensive Italian puffer jacket manufacturer.
As TV fashion guru Patrick Grant points out, Burberry used to make “absolutely brilliant coats” that it developed year after year focusing on waterproofing and design qualities.
Under no circumstances should a British heritage company (which still manufactures in Keighley, Yorkshire) allow itself to be caught by a continental luxury giant who would bury it alive.
Investigation Negligence
Amid all the Labor government’s failed speeches about growth, it is doing very little to support the UK’s scientific excellence.
The University of Cambridge, which added a couple more Nobel laureates this year, taking its proud tally to 125, is launching a £50 million campaign to recruit the best and brightest PhD students from around the world.
The goal is to raise cash in ten years. Given the reward, in the form of companies like Deep Mind, a government investing billions in the public sector needs to speed up the PhD process at our big research institutions now.
The delay is suicide in R&D.
