After Prime Minister Boris Johnson’s Tory Party won a landslide victory in the U.K.’s recent parliamentary election, President Trump tweeted congratulations to PM Johnson, and teased a deal that could be great for both countries.
Congratulations to Boris Johnson on his great WIN! Britain and the United States will now be free to strike a massive new Trade Deal after BREXIT. This deal has the potential to be far bigger and more lucrative than any deal that could be made with the E.U. Celebrate Boris!
— Donald J. Trump (@realDonaldTrump) December 13, 2019
A free trade deal between the world’s largest (U.S.: GDP $21.21T) and seventh-largest (U.K. $3.02T) economies would be great for both. America and the U.K. are already close allies in nearly every endeavor, a free trade deal between the two makes sense.
The Wall Street Journal reports on the prospect of the deal:
This is already an important trading relationship. The nations exchanged $261.9 billion in goods and services last year, with the U.S. running an $18.9 billion surplus. The U.S. is Britain’s largest trading partner. Although trade with America won’t entirely replace commerce that Britain might lose with the EU, a high-quality U.S. deal would be transformative.
An agreement would signal that post-Brexit Britain is open for business. And since the countries share economic and legal traditions, they have an opportunity to create a new template to address thorny issues like regulatory barriers to trade. This could inform other negotiations around the world. That’s why both sides should fight for a comprehensive trade agreement, even if serious sticking points mean it will take more time to negotiate.
Read more here.