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Started by Marmalade King
Thu, 08 May 2025 19:54
"Comprehensive" in Name Only: The U. S. U. K. Trade Deal Is a BS Photo Op at Best
Author: Marmalade King
Date: Thu, 08 May 2025 19:54
Date: Thu, 08 May 2025 19:54
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5436 bytes
"Comprehensive" in Name Only: The U. S. U. K. Trade Deal Is a BS Photo Op at Best Today, President Trump announced a historic and comprehensive new trade deal between the United States and the United Kingdom. Except, its anything but. What they didnt say out loud? Its not comprehensive. Its barely historic. And it might not even qualify as a trade dealat least not in the way economists, diplomats, or WTO lawyers would recognize one. Still, if you squint, theres something in there. Just not what theyre selling. Lets unpack the press conference fluff from the policy reality. Whats important to remember as this isnt even a deal. In a concpet of a plan or outline for the following minimal concessions. AKA, A Joke. Heres what made the cut: Steel & Aluminum Tariffs Lifted: Trumps infamous 25% tariffs on British metals are gone. This is a win for U. K. steel producers, especially those exporting to U. S. auto and aerospace markets. Autos, Sort Of: American car buyers get a breakbut only on the first 100,000 U. K. -made vehicles (think Jaguar Land Rover). The rest still get hit with the old 25% tariff. Generous. Ethanol & Beef Exports: U. S. farmers get easier access to British markets. Beef quotas expand (13,000 tonnes) and ethanol flows more freely. Food safety standards, the U. K. insists, will not be compromised. Tech Cooperation: A vague promise to collaborate on emerging technologiesquantum computing, biotech, life sciences. Not binding. Not defined. Not a trade agreement. A Boeing Deal: A British airline will purchase $10 billion worth of Boeing aircraft. Thats not a trade agreement eitherits a procurement decision. The Boeing Deal is a favor. China and several other countries that Trump slapped tariffs on have canceled billions in Boeing business. Lets talk about the fine print. Or, more accurately, the fine print that doesnt exist. No Comprehensive Services Deal No new access for banking, legal, creative or digital servicesthe lifeblood of both economies. No Investment Chapter No new protections for cross-border investors or mechanisms to resolve disputes. No Digital Trade Framework The U. K. s 2% digital services tax on Big Tech stays, which means no movement toward a U. S. -style e-commerce agreement. No Labor, Environmental, or IP Standards Zero enforceable standards or side agreementstypically expected in 21st- century trade deals. No Treaty Text at All There is no legally binding document yet. Just a press release and an agreement in principle. Think handshake over hors d'oeuvres. Lets talk about that wordcomprehensive. In trade-speak, a comprehensive free trade agreement (FTA) is one that covers 90%+ of goods and services, includes enforceable rules on investment, dispute resolution, digital trade, labor, and more. By WTO standards, this is a starter pack. Trade economists like Jonathan Haskel (LSE) and Jonathan Portes (Kings College) are clear: this is a tariff carve-out, not a trade overhaul. Portes said it bestDamage limitation, not economic transformation. Tim Brightbill, a former U. S. trade negotiator, called it just a framework to begin real negotiations. Experts at Chatham House and the UK Trade Policy Observatory echo the sentiment: Its progress, but its baby steps. World-famous economist Justin Wolfers mocked Trumps fake deal, even if it becomes a reality. The US has a trade surplus with the UK and is America's 11th most significant trading partner. The U. K. press reaction? Mixed. The Guardian noted No. 10 Downing Street refused to repeat Trumps comprehensive language. The Independent called it a first step, not a Brexit breakthrough. Sky News pointed out the obvious: theres no treaty, just bullet points. That didnt stop Starmer from calling it historic. Or Trump from calling it maxed out. But most analysts agree: this is a modest deal with real benefits for a few sectorsand very little else. Make no mistake: theres political value here. Trump gets to act like his tariff war strategy worked. Starmer gets to claim victory after years of post-Brexit stagnation. Steelworkers and carmakers get relief. Farmers (on both sides) get access. But the economic lift is modest. GDP wont spike. Market access remains constrained. And calling it comprehensive is like calling ketchup a vegetable. Trump himself said it was a concept of a plan today, not a deal. Despite what he wants his Truth Social/Twitter followers to believe, this is nothing more than a photo op and an attempt to move markets while pretending his bullshit Trade War is working. Because optics matter more than outcomes. For Trump, it's a campaign-style victory lap. For Starmer, its proof Britain isnt friend-zoned post-Brexit. But for the rest of us? Its a case study in headline diplomacybranding over substance. No one wants to say it out loud, but here it is: this is not a full trade deal. Its a glorified tariff relief package with a nice PowerPoint presentation. This deal is better than nothing, but its close to nothing and certainly not a comprehensive trade deal. It eases pressure on a couple of key industries. It sets the stage for deeper talks. And politically, its a signal that U. K. U. S. relations are back on track. But its not transformative. Its not comprehensive. And its not a full trade agreement. The only thing this deal transforms is the definition of the word deal.
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