Labour ‘must get on front foot’ with Trump trade deal and take advantage of Brexit, former export minister says
12 November 2024, 07:56 | Updated: 12 November 2024, 07:57
A former exports minister has told LBC Britain can be more “nimble” than the EU and persuade the incoming US Government of the benefits of a free trade agreement.
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Donald Trump is widely expected to introduce tariffs of between 10% and 20% on most goods imported into the USA, rising to 60% on those coming from China.
Government ministers have so far refused to reveal what proposals are being worked up in response to the threat of tariffs.
But Lord Offord of Garvel, a Scottish businessman who served as Parliamentary Under-Secretary of State for Exports between April 2023 and July 2024, said the UK's Department for Business and Trade was well placed to work out a deal, and urged Labour to do it as soon as possible.
Lord Offord told LBC: “This has been pretty flagged up by the incoming Trump administration, and we're at an advantage here, believe it or not.
Read more: Trump 'could give UK special exemption from tariffs' when he becomes President
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“It is a benefit of Brexit we're able to deal with this as the UK, we can come forward to America much more quickly, much more nimbly as an independent country.
“We've done the template on this through eight MOUs, and with another five being negotiated, that puts us ahead.”
MOUs (Memorandums of Understanding) are trade agreements between the UK and individual states, like Texas and Florida, although are still subject to federal-level tariffs.
Lord Offord said commercial relationships already in place with the United States would be a useful tool in Britain’s pitch to the Trump team.
The businessman also pointed to the fact 80% of the UK’s economy is based in services rather than goods.
“We've made the case to America that what we can give them does not in any way hinder or destroy their own domestic trading and employment opportunities,” he said.
“I don't in any way diminish the scale of tariffs and the impact that will have, especially on our manufactured goods, I'm just saying the job of the government is to mitigate that if that's going to happen.
“We've got probably the best negotiating team in the world, the question is, are the ministers sufficiently savvy to push that? I don't see why not.”
Lord Offord described Donald Trump as a “deal maker” and said this was the time to get round the table with a top businessman like the President-elect.
Speaking on a trade deal, Chief Secretary to the Treasury Darren Jones told Sunday with Lewis Goodall: “Obviously, it always depends on the detail of these things and we'd have to work that through.
“It's not that I'm saying I don't want to take advantage of it. I'm saying as of today, we don't know what the terms of that are, what the details are and president-elect Trump is not yet in office.”
