For an early win on global trade, Boris Johnson should look no further than Donald Trump

Liz Truss has been given the task of promoting free trade - AFP
Liz Truss has been given the task of promoting free trade – AFP

It’s official – the Johnson administration says it is committed to securing a global, outward-looking Brexit. But of course, saying something is not the same as delivering it.

There are reasons to be optimistic. On the steps outside Downing Street, in the speech that laid out his vision for his premiership, the new Prime Minister paid lip service to the benefits of free trade, which, as he accurately noted, “has done more than anything else to lift billions out of poverty.”

“Let’s start now on those free trade deals,” he proclaimed.

And it seems he has appointed the right people to do so. The newly appointed International Trade Secretary Liz Truss is one of the most vocal supporters of the global Britain vision; she has the economic savvy to recognise that tariffs are taxes on your own consumers, and a strong belief in the role of the market to help secure peace and prosperity, not just in the UK, but with the countries we trade with as well.

The right puzzle pieces are falling into place – but what will the complete picture actually look like?

Deal or no deal, free trade agreements outside of the EU are a key ingredient of Britain’s success post-Brexit. And there are already offers on the table.

Ministers have held informal talks on joining the Trans Pacific-Partnership (TPP), a free trade bloc which includes 11 countries bordering the Pacific Ocean. With terms and conditions already in place, this is an easy win for Britain to secure a free trading future with major world players including Australia, Japan and Mexico.

The post-Brexit free trade agreement signed with South Korea last month offers new opportunities to the UK as well; not simply better trade with South Korea specifically, but the ability to use the agreement as a blueprint deal, which can be brought to other countries of similar size or similar relationship to Britain, cutting down the timeline of the negotiating process.

But vitally, the UK needs to look to its greatest ally, the United States, to formally expand the Special Relationship beyond our historical and social ties, and affirm our economic ties as well.

Now more than ever, both countries (and leaders) are in a unique position in which securing a bilateral trade deal would be of huge value to both countries at the same time.

The Oval Office is currently occupied by a trade protectionist, who interprets trade deficits as a loss for American citizens, rather than a win for those in the market for cheaper, more varied goods. As Donald Trump escalates trade tensions with China, and even hits out at the European Union, he will be in the market for a symbol of good foreign relations and to show some indication of being open to parts of the world.

Meanwhile Prime Minister Johnson – who campaigned hard to leave the European Union, with the promise that Britain would be more prosperous stepping out onto the global stage alone – will be looking for a big, early win on the trade front, to prove that the messaging of Brexiteers can translate into results.

While there are areas like health and agriculture that will prove more sensitive in the discussions, most goods should prove much easier to find mutual ground on, securing at least a bare bones trade deal, if not a comprehensive package. Both of these outcomes could give a meaningful boost to growth, and improve the quality of life for consumers on both sides of the pond.

Many like to compare Johnson to Trump. Outside of their birthplace and truly extraordinary haircuts, I think it is often a reach to bill the two as a like-for-like pairing.

But on the topic of trade, for very different reasons, they come to the same conclusion. If the UK trade team can pick up the pace, there are serious opportunities to be gleaned in (what Johnson promises to be) a few months’ time.

The UK appears ready to get started, and may finally have the political will to get going.

Kate Andrews is associate director at the Institute of Economic Affairs

source: yahoo.com