Standing Alone in the UK... Survival Negotiations with the US over 'Huawei and Agricultural Products'

Pressure to Open US Agricultural Products…Challenges Expected Ahead of FTA Signing

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jaehee] With Brexit (the United Kingdom's withdrawal from the European Union) becoming a reality, the UK has succeeded in standing on its own. However, it now faces formidable challenges such as negotiations with the EU and individual free trade agreements (FTAs) with the United States. In particular, the US is strongly demanding agricultural market opening, just as it did with the EU, which is expected to pose a considerable burden.

Immediate attention is focused on agricultural and livestock product negotiations. The US is effectively demanding that the UK, which maintains high food safety standards, lower those standards. According to foreign media, the US pressured the EU to open its agricultural market and accept GMO (genetically modified organisms) products, chlorine-washed chicken, and beef from cattle raised with hormones. This stance is expected to be applied similarly in negotiations with the UK.

Especially with the US presidential election coming up in November, the Trump administration is expected not to back down in trade negotiations with the UK, as it needs to secure support from the agricultural sector.

On the 30th (local time), US Secretary of State Mike Pompeo, visiting London, said in an interview, "Negotiations regarding chlorine-washed chicken should continue to apply even after the UK leaves the EU," adding, "The biggest beneficiaries of this deal will be UK consumers."

The UK's decision to introduce Huawei's 5G equipment is also expected to become a variable in trade negotiations with the US. The US has long advised allies, including the UK, not to select Huawei equipment due to concerns over information leakage to China. However, when the UK broke with this and decided to adopt Huawei equipment, the US issued a warning.

During his visit to the UK, Secretary Pompeo met with Prime Minister Boris Johnson and expressed concerns, saying, "Huawei is a high-risk supplier, and the US will not share information with places it considers unsafe."

The digital tax is also considered a major issue in negotiations between the two countries. As the UK announced plans to introduce a digital tax starting in April, the US warned that it would impose tariffs on British-made cars such as Bentley and Rolls-Royce if the digital tax is implemented.

This content was produced with the assistance of AI translation services.