Pressmediaofindia
Related Articles
18-11-2024
WASHINGTON/ LONDON: A senior economic adviser to US President-elect Donald Trump has said Britain should align itself with the United States on trade rather than pursue closer ties with the European Union.
Speaking to media, Stephen Moore said the EU had a “socialist model” and suggested the US would be less interested in a free trade deal with Britain if the government put its economic relations with the EU ahead of those with the US.
“The UK is kind of caught in the middle of these two forms of economic model and I believe that Britain would be better off moving towards more of the American model of economic freedom. And if that were the case, I think it would spur the Trump administration’s willingness to do the free trade agreement with the UK,” said Moore.
Bank of England Governor Andrew Bailey on Thursday urged Britain’s new Labour government to rebuild ties with the EU.
While the government has ruled out rejoining the EU’s single market or customs union, Prime Minister Keir Starmer has said he wants to improve trade ties and diplomatic relations with the bloc.
Finance minister Rachel Reeves, speaking just before Bailey at the same event, said Britain needed to “reset” its relationship with the EU, and that she also looked forward to working closely with Trump to strengthen trade ties.
While Bailey did not refer directly to the US election in his speech, policymakers around the world are still digesting Trump’s victory and the prospect of double-digit tariffs on goods imported by the United States.
Britain should stand up for free trade and rebuild ties with the European Union as the global economy fragments, Bank of England Governor Andrew Bailey said in a speech on Thursday that cast an eye towards Donald Trump’s White House return.
Bailey said a commitment to open trade was vital to boost weak investment in Britain and restore productivity growth, along with an unlocking of capital from businesses and pension funds, something planned by finance minister Rachel Reeves.
Brexit which was backed by voters in 2016 and took effect in early 2020 – had contributed to a weakening of Britain’s trade flows and weighed on the potential productive capacity of its economy, Bailey said.
“As a public official I take no position on Brexit per se. That’s important but I do have to point out consequences,” Bailey said in his annual Mansion House speech to financial services leaders in London.
“It underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people.”
While the new Labour government has ruled out rejoining the EU’s single market or customs union, Prime Minister Keir Starmer has said he wants to improve trade ties and diplomatic relations with the bloc.
Finance minister Rachel Reeves, speaking just before Bailey at the same event, said Britain needed to “reset” its relationship with the EU and that she also looked forward to working closely with Trump to strengthen trade ties.
Bailey said Britain needed to look at the wider picture for growth, and not just the impact of Brexit.
While Bailey did not refer directly to the US election in his speech, policymakers around the world are still digesting Trump’s victory and the prospect of double-digit tariffs on goods imported by the United States.
These would have far-reaching implications for global trade and inflation, the BoE governor said.
“The picture is now clouded by the impact of geopolitical shocks and the broader fragmentation of the world economy,” Bailey said. (Int’l News Desk)
