EU and UK Divorce Seals, Court US for Security and Trade Cooperation

EU Foreign Affairs and Security Representative Visits US
UK Pursues Tariff Reduction and Simplification Ahead of FTA Negotiations

[Asia Economy reporters Naju-seok and Kwon Jae-hee] The EU and the UK, which parted ways due to Brexit (the UK's withdrawal from the European Union), have each begun courting the United States. The heads of EU diplomacy, security, and trade have visited the US in succession to promote improvement in transatlantic relations, while the UK has decided to reorganize its tariff system ahead of a free trade agreement (FTA) with the US.

According to the European External Action Service (EEAS) on the 6th (local time), Josep Borrell, the EU High Representative for Foreign Affairs and Security Policy, began a two-day visit to the US. This is Borrell's first visit to the US since his appointment in October last year. During his stay, Borrell will meet with US Secretary of State Mike Pompeo, House Speaker Nancy Pelosi, White House National Security Advisor Robert O'Brien, and White House Senior Advisor Jared Kushner.

The agenda Borrell will discuss places more emphasis on the EU's regional security cooperation than on US President Donald Trump's announced Middle East peace plan or the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action). Regarding this visit, the EEAS expressed enthusiasm, stating, "Although the EU and the US have recently shown differences in foreign policy, we will establish a history of cooperation based on long-standing shared values and interests."

Phil Hogan, the EU Commissioner responsible for trade, also separately visited Washington on the same day. This is three weeks after his visit to the US last month. Although Hogan was scheduled to attend a digital economy conference, foreign media reported that he suddenly changed his plans and traveled to the US. The EU stated that Hogan is scheduled to meet with Robert Lighthizer, the US Trade Representative.

The EU is committed to improving relations with the US. Stavros Lambrinidis, the EU Ambassador to the US, stated, "As has been the case in the past, the EU will continue serious dialogue regarding establishing a win-win relationship with the US."

The UK is pushing to revise its overall tariff system ahead of FTA negotiations with the US.

According to the British daily The Guardian, Liz Truss, the UK Secretary of State for International Trade, revealed the new post-Brexit trade negotiation goals to Parliament on the same day, focusing on tariff reductions. Truss said, "Through comprehensive and mutually beneficial tariff reductions, we expect to reduce the burden on UK consumers, expand choices, and increase UK companies' access to the US market."

She added, "The tariff reduction and simplification work involves reducing tariffs to below 2.5% or rounding complex tariffs to simpler rates such as 5% or 10%. If necessary, we will also pursue complete tariff elimination." This aims to increase UK exports but also has the effect of expanding imports from countries like the US. As of 2018, the US accounted for 19% of UK exports and 11% of imports. Excluding the EU, the US is the UK's largest trading partner.

However, there are forecasts that the effect of the UK's courting may be limited as the US is pressuring the UK in areas such as food and pharmaceuticals. The US is lowering import standards for UK food products while increasing pressure on pharmaceuticals and medical devices.

Secretary Truss plans to meet with UK companies starting from the 5th of next month to gather opinions.

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