When the music finally stops on trade negotiations, UK may well have better deal than the EU, says the UK-US export specialist, ParcelHero
ParcelHero, an international courier specialising in UK-US deliveries, says Trump’s shock victory could be very good news for UK businesses that trade regularly with the US.
Head of consumer relations, David Jinks, said: “There are two reasons Trump’s triumph is positive for UK-US traders. One is short term as the dollar wobbles; and the other long term as US-EU TTIP free trade negotiations collapse and post-Brexit Britain strikes an independent deal with the US.”
According to Jinks, there are short term and long term benefits. They are:
- Any immediate fall in the dollar means US made products a more attractive buy.
- Purchases made from China through Alibaba are in US dollars. Alibaba is a key source of wholesale products for many UK importers. This means the price of Chinese imports through Alibaba will fall
- just in time for the Singles Day sales (this Friday, 11/11): the biggest shopping day in the world. UK importers will be able to buy cheap and pass on savings when they re-sell on Black Friday/Cyber Monday.
- The proposed Transatlantic Trade and Investment Partnership (TTIP) between the US and EU, supported by Hilary Clinton initially, would have effectively been a Free Trade Agreement between the two blocs and abolished tariffs and delays at US Customs. Trump is clearly against any such free trade agreements. Instead he will look to strike separate deals with different trading blocs while protecting some US industries and businesses.
- Trump has gone on record in saying the UK will certainly not be ‘at the back of the queue’ when it comes to trade deals with the US. He made these comments back in May following Obama’s threat Britain would go to the back of the trade negotiation queue if we voted to leave the EU. And Trump’s trade advisor Dan DiMicco has recently stated Britain would be a higher priority for a deal than the EU. ” Why shouldn’t we be working with like-minded people before we do a deal with anybody else?” he asked.
- Currently tariffs between the EU including Britain and the USA are all over the place and need sorting out. For example, we pay a 10% duty on US made cars; whereas US citizens pay 2.5% duties on EU-built cars. Imagine a situation where the UK (post Brexit) and US strike a deal that removes duties; but the US drags its heals doing the same with the EU. A US-build Jeep, for example, would be 10% cheaper here than in the EU; and a UK-built £50,000 Jaguar would be over £1,000 cheaper to buy in the US than an equivalently priced EU-built Mercedes. That will boost UK exports.
- ParcelHero is a member of the Government’s Exporting is GREAT initiative and we’ve already seen a marked increase in shipments to the USA this year – probably to exploit the new US Duty threshold which increased this year from $200 to $800. Perhaps contrary to all expectations, US-UK trade could enter a new special relationship under Trump post Brexit.