A Nobel Prize-winning economist has advised Sky Information the not too long ago introduced UK-US commerce deal “is not well worth the paper it is written on”.
Sir Keir Starmer and Donald Trump introduced the “first-of-a-kind” settlement with a dwell, televised cellphone name earlier this week – and the British prime minister hailed the deal as one that may save 1000’s of jobs within the UK.
Politics newest: Tories criticise proposals to tackle immigration
However main economist Joseph Stiglitz has advised Sunday Morning with Trevor Phillips he “would not view [the deal] as an awesome achievement”.
“Any settlement with Trump is not well worth the paper it is written on,” he mentioned, declaring the president signed offers with Canada and Mexico throughout his first time period – solely to slap them with hiked tariffs inside days of returning to the White Home this yr.
“I might view it as taking part in into Trump’s technique,” he mentioned.
“His technique is divide and conquer, go after the weakest nations, and type of put the stronger nations within the again.”
The scramble to safe a UK-US commerce deal was sparked by Mr Trump’s ‘Liberation Day’ announcement final month, which noticed the president hike import tariffs for a number of nations and subsequently ship world markets crashing.
China initially confronted tariffs of 34% and when Beijing hit the US with retaliatory charges, a commerce battle shortly ensued.
The US and China now impose tariffs of above 100% on one another, however representatives from the 2 nations have this weekend met for high-stakes negotiations.
Learn extra:
Key details in the UK-US deal
Analysis – the challenge Starmer faces
Donald Trump, with US vice chairman JD Vance and Britain’s ambassador to the US Peter Mandelson, asserting the deal. Pic: AP
Sir Keir Starmer dialled in for the deal announcement. Pic: AP
With its response to Mr Trump, Beijing “made it very clear that the US could be very depending on China in so some ways,” Mr Stiglitz mentioned.
“So that they’re starting now to barter, however from a place of power.”
👉 Click here to listen to Electoral Dysfunction on your podcast app 👈
Requested if he thinks the UK ought to have centered on its relationship with the EU as an alternative of the US, Mr Stiglitz mentioned: “Very a lot so.
“My view is that in case you had labored with the EU to get a superb deal, you possibly can have achieved higher than what you’ve got achieved.
“If it seems, ultimately, while you work all of it out, Trump is sad, he’ll run. If he is sad, I pray for you.”
Amongst the terms in the UK-US trade deal are lowered tariffs on British automobile and metal exports to the US, whereas the UK has agreed to take away a tariff on ethanol, used to provide beer.
The settlement additionally opens a brand new agricultural trade, with US farmers being given entry to the UK for the primary time – although UK meals requirements on imports haven’t been weakened.
