The United Kingdom is about to sign an economic agreement with the United States of Donald Trump, while the latter multiplies the hostile advertisements of taxes targeting products from Canada, China and the European Union. During a call on Sunday, March 23, British Prime Minister Keir Starmer and the American president discussed “progress” for an economic deal between the two countries, Downing Street announced.
Since leaving the European Union, effective on January 1, 2021, London dreams of a commercial agreement with its great ally, which would allow it to escape American customs duties which target many European countries. He is now touching it. “The United Kingdom is working with the United States on an economic prosperity agreement, based on our common forces and our commitment to economic security,” said a spokesperson for the Prime Minister, evoking a “brief discussion” without giving more details.
An agreement focused on the technology sector
Donald Trump had fueled British hopes last month, during a visit to Keir Starmer, assuring that the United States and the United Kingdom were going to conclude “a real trade agreement in which customs duties would not be necessary”. In truth, negotiations with the United States would concern “less a full free trade agreement than an agreement covering only certain sectors,” explains the government spokesperson today to the British newspaper The Guardian.
According to another British national newspaper, The Telegraphthe deal will mainly focus on the cutting -edge technology sector. Three weeks ago already, following his visit to Washington, Keir Starmer mentioned an agreement in particular in his heart all the technologies concerning artificial intelligence, pointed out the British news agency Reuters. “Instead of regulating these new technologies too much, we seize the opportunities they offer. So we decided today to go further to start working on a new economic agreement with advanced technology in your heart,” Starmer said to journalists at a joint press conference with Trump in the White House.
British tax on digital services?
As with Europe, the British steel industry is already targeted by customs duties – a 25 % increase in taxes on all imports of aluminum and steel – against which London has not promised response, unlike the EU. According to British media, London could return to his tax on digital services, a tax targeting in particular the American tech giants, in order to persuade the White House to reduce the impact of customs duties on the United Kingdom and secure a trade agreement with Washington.
Asked about this information during a briefing this Monday, March 24, the Prime Minister’s spokesperson replied that the United Kingdom would conclude an agreement “only in the national interest, which reflects the mandate of this government, which is to ensure the economic stability of the British people”, without however denying the end of this tax but recalling its “immense importance”, since it brings about 800 million pounds (around 950 million euros).