US Democrats Prefer a EU than a UK Trade Deal

Tensions have emerged between Democrats and Republicans over the wisdom of Donald Trump prioritising a bilateral trade deal with the UK and leaving the European Union by the wayside, and the speed at which such a deal could be struck.

Democrats addressing a joint foreign affairs congressional hearing were wary of the US president’s enthusiasm for a bilateral deal, describing it as either unrealistic or likely to damage US relations with Europe.

It was the first public discussion of the issue on Capitol Hill since Theresa May met Trump in Washington.

Some experts warned that it might take eight years for a deal to be concluded, and that negotiations were likely to be difficult due to the threat posed to British farmers and workers’ rights, and consumer opposition to US products such as hormone-treated beef.

Others at the hearing were more bullish. Nile Gardiner, director of the Margaret Thatcher Foundation at the Heritage Foundation, said a deal could be struck within 90 days of the UK leaving the EU in 2019. Such a deal would be “a force generator for economic liberty through genuine bilateral free trade based upon the principles of sovereignty and economic freedom”, he said.

Bill Keating, the lead Democrat on the foreign affairs committee, said he was concerned by suggestions that maintaining a special relationship with Britain would come at the expense of maintaining robust relationships with the rest of Europe, which accounts for 80% of US transatlantic trade.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza