Tony Danker’s visit to Washington, his first as Director General, came amidst a heightened interest in UK politics globally due to the Conservative leadership race. As well as member and stakeholder conversations focusing on who the next UK Prime Minister could be, there was keen interest in the Northern Ireland Protocol. Deglobalisation – with a particular focus on the future of the UK’s relationship with the EU and China – also featured in discussions as well as the UK-US trading relationship.
Deglobalisation
Deglobalisation was an emerging key theme from Tony’s visit to Washington.
Tony’s used meeting Deputy US Trade Representative, Jayme White, and Jonathan Hale, the US Department of State’s policy lead on supply chain resiliency, to emphasis the importance of the UK and US working together to ensure businesses are well prepared for any changes to supply chains.
Tony also discussed deglobalisation at the Atlantic Council, Centre for Strategic and International Studies, and American Enterprise Institute. During this meeting it was highlighted that both political parties see China as a threat to the global economy and the Biden administration is deeply serious about encouraging allies to hedge against China.
Additionally, Tony met with Iowa Senator, Chuck Grassley – the Dean of the US Senate, a senior member of the Senate Finance Committee, and a crucial partner on trade policy in Congress. The Senator and his team spoke at length about how national security concerns over China are driving the wider Congressional debate on economics. There is now effectively a bipartisan endorsement of industrial policy for the first time in decades – seen through the $52 billion semiconductor subsidy package currently being debated.
The future of US-UK Trade
Tony’s trip was also a good opportunity to determine where the opportunities are for the US and UK to deepen its bilateral trade relationship in the face of a changing economic environment.
Tony met with members at the British Embassy and separately with senior leaders at the US Chamber of Commerce, National Foreign Trade Council, and AFL-CIO to discuss this the future of UK-US trade.
While the Biden administration isn’t on the precipice of restarting negotiations for an FTA with the UK, there is clear political will to “do something more.” Whether that means establishing a framework similar to the US-EU Trade and Technology Council or something different all together, however, is unclear. So, while business groups are eager to make the case for trade, it remains to be seen if this administration will negotiate through traditional trade agreement formats.
Northern Ireland Protocol
Finally, the Northern Ireland Protocol was a hot topic for discussion during Tony’s trip. Tony delivered insight and clear guidance on how the US could play a beneficial role in his meeting with Acting Assistant Secretary of State for Europe, Dereck Hogan. While the US Government, particularly the Democrats, feel very proud of the Good Friday Agreement, Tony was able to make clear the type of productive role for the US could play as an independent interlocutor.
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