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Chancellor Rachel Reeves opened the door to a reduction in prices on American cars exported to the United Kingdom as part of a trade agreement with Donald Trump, but she insisted that Great Britain would not dilute her food standards or her automotive safety rules.
Speaking in Washington, Reeves told a conference that prices were going “in both directions” in the commercial relationship and “I would like to see these reduced non -tariff rates and obstacles”.
Earlier, Reeves told journalists that an agreement “can be done” with the United States when it was preparing to meet its American counterpart, Secretary of the Treasury Scott BessentBut insisted that it would not be at any price.
But she refused to put schedules on the talks, insisting: “We are not going to precipitate an agreement – we will get the good deal which is in our national interests.”
Obstacles to an agreement remain considerable, the United States seeking better access to British markets for its farmers. American negotiators have raised the problem with British counterparts in recent weeks.
Sir Keir Starmer, British Prime Minister, said that he would insist on maintaining “the highest animal protection standards”, when he was asked on Wednesday if he asked if they would lower Great Britain's food standards to allow the importation of “lower meat” from the United States.
Downing Street said that maintaining the current ban on hormonal beef and chicken in chlorine remained a “red line” in all trade talks with the United States, an echo view by Reeves.
However, Reeves did not reject a suggestion that the United Kingdom could respond positively to an American demand for Great Britain in order to reduce its prices on imports of American cars from 10% to 2.5% as part of a trade agreement.
In response, Great Britain would expect to see Trump cut her New price of 25% on imports of British cars to America.
An official said that the idea, reported for the first time by the Wall Street Journal, was achievable and could be carried out without Great Britain having to reduce prices on cars imports to other business partners – in particular China – to comply with the rules of the World Trade Organization.
When asked if the United Kingdom was ready to reduce its prices to 2.5% in the context of an agreement, Reeves said that it would not give a “current comment” on the figures.
David Henig, a commercial expert, said the United States could receive special treatment if the pair negotiated a free trade agreement.
He said that the WTO demanded that the ALF cover almost all of the trade, but it said “it is not a strong principle” and it was unlikely to be tested.
The annual exports of American cars to Great Britain is relatively modest, at 1.4 billion dollars, attenuating the impact of the industry from any reduction in the British rate. This is largely due to the fact that most vehicles sold in the United Kingdom are made in Europe, even those of American brands such as Ford.
In its annual report on the country's trade by country published this month, the US government has distinguished the 20% prices of the United Kingdom on certain fish and seafood products, 10% on trucks and cars and up to 6.5% on chemicals as “high”.
The government of Sir Keir Starmer is under pressure of assembly of British manufacturers, including the automotive industry To ensure a relaxation of Trump's barriers given the damage they make to key exports.
Mike Hawes, director general of the Society of Motor Manufacturers and Traders, said this week that the 25% levy imposed by the United States on foreign cars had a “severe, important and immediate” impact on luxury brands which are the specialty of the British automotive industry.
Cars are the largest export article in the United Kingdom in the United States, representing sales worth 6.4 billion pounds sterling and covering brands such as Bentley, Aston Martin and Range Rover in JLR.
Reeves said it was under “no illusion” on the challenges posed by American prices, when they asked them about the automotive sector specifically on Wednesday. But she insisted that the United Kingdom would not rush into a “defective agreement”.
“I will not put a delay in it – the important thing is to obtain the right deal rather than rushing into an agreement,” said Reeves to journalists in Washington.
“The strength of our commercial relationship, our defense and our security relationship, is unrivaled. The American administration, like the British government, wants to rely on these forces and obtain an agreement. ”
Currently, cars sold in the United Kingdom or the EU must comply with European security standards, including collision tests which are far more strict than the requirements on vehicles sold in the United States.
Reeves said the United Kingdom would not reach automotive security standards in response to a call from another government.
“We are not going to modify our standards according to requests for requests from foreign governments.
Reeves refused to discuss the terms of any agreement with the United States, adding that it would not discuss the “subtleties” of trade when it meets Bessente.
Additional report by Valentina Romei in London
