Summers says: Desperate Britain has no leverage for U.S. deal

Former US Treasury Secretar, Lawrence Summers said: A British-US trade deal will not be readily agreed after Brexit because the US will not accept punitive terms in the bid.

Britain has no leverage. Britain is desperate. Britain has nothing else. It needs a deal very quickly. When you have a desperate partner that’s when you do the most difficult shopping.”

President Donald Trump has promised that an agreement between the US and the UK would be concluded soon after the latter leaves the European Union, though analysts have questioned that timeline. Bloomberg Economyics calculations show that a free trade agreement with the US would only offset part of the cost of a no-deal Brexit.

Summers, speaking in an interview with BBC Radio 4 on Tuesday, said any trade deal Washington would agree to was not “exciting for the prospect of the British economy“.

“I find it unlikely that there will be a significant increase in British and near inconceivable British trade that will have a growth nearly large enough to compose what Britain is losing in terms of diminishing access to the EU. ”

Summer also highlighted the potential hurdles to any deal – troubled US policy, the U.S.-China trade war and the weakening US currency.

“The deterioration of the pound will further complicate the negotiating picture, because we will see it giving Britain an artificial comparative advantage, and make us think of the need to take revenge against Britain, not welcome Britain by agreement new trading “./

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