THE TTALK QUOTES


On Global Trade & Investment
Published Three Times a Week (with occasional bonus quotes) by
The Global Business Dialogue, Inc.
Washington, DC  Tel: 202-559-9316
No.14 of 2020
SATURDAY, FEBRUARY 22, 2020

Click HERE for Thursday's quote from Trade Data Monitor
WHAT DOES THE UK WANT?

 "Where does the British government -- or British public opinion for that matter -- where do they want to be different from the current EU regulatory regime?"

David Salmonsen
American Farm Bureau Federation
January 28, 2020
AN APPRECIATION
GBD is grateful to those who helped to make possible the event Beyond Brexit, which gave rise to today's quotes. We especially wish to thank

The National Pork Producers Council
for Sponsoring the event,

The Information Technology Industry Council
for Supporting the event, and

Corning
for being a Friend of the Event.

CONTEXT
At this point we have run several quotes from GBD’s January event “Beyond Brexit.” This one is from the event’s concluding Q & A session. It was a very rich discussion, and we may well revisit it for one nugget or another later in the year. Today’s quote, however, is the last focused effort to highlight specific elements of our January 28 event. It could not be more fitting. 

David Salmonsen is the Senior Director for Congressional Relations at the American Farm Bureau Federation and, we would add, a highly respected and very insightful member of the Washington trade community. Today’s quote is from the question he asked at the tail end of GBD’s “Beyond Brexit.” That discussion included a fair amount of commentary and speculation on the possible character and content of a U.S.-UK trade agreement. Mr. Salmonsen asked:

Where does the British government, do you think – we’re all speculating – or British public opinion for that matter — where do they want to be different from the current EU regulatory regime? You know, as Shawna [Morris] pointed out, all of us in U.S. agriculture have a long history of all the things we haven’t liked about the EU approach going back, now, many decades. So just whether it’s – not just ag and food but across the many industries – where does the UK want to differentiate itself from where the EU has always been?

Mr. Salmonsen’s mention of comments made by Shawna Morris is a thread worth following, as she was quite clear about how much hinges on the answer to Mr. Salmonsen’s question, especially for American agriculture.

Ms. Morris, who represents the U.S. dairy industry, was one of four panelists at the January 28 event. Someone from the Ways and Means Committee had asked the panel how they would feel about a small, scaled back agreement between the U.S. and the UK, one that focused mainly on digital trade and services and left aside the difficult issues of agriculture. This was Shawna Morris’s response:

I’d say from dairy, and I think it’s probably safe to say from the broader ag perspective too: a narrow or scaled down agreement with the UK would be a huge missed opportunity.  You know, I think we have a really great chance here to negotiate with probably the single Member State that we can probably see the most with eye-to-eye and that, historically, has been on a very similar page, even on some of these very thorny issues with the U.S.   What it is going to hinge on is UK independence, regulatory and policy independence.  If they are required to simply take lock, stock, and barrel every regulatory change and new policy that the EU continues to issue moving forward, that’s going to be really tough to resolve. I really don’t see a positive way forward. On the other hand, if they can set their own decisions, I think even these tough ag issues are achievable. 
COMMENT
We have posted the audio recording of the Q&A from January 28 on the GBD website along with a transcript of it. It’s long – 13 single-spaced pages – but it contains a number of memorable lines and a range of opinions. You can hear Jennifer Riccardi of the EU Delegation pointing out that “the EU has successfully concluded deals all over the world without threat of tariffs.”  You can also hear a rather different attitude expressed by Nile Gardiner of the Heritage Foundation. He is highly critical of the EU and described t he EU’s Common Agricultural Policy, for example, as “ the biggest protectionist racket in the world.”

***
To be sure, a lot has happened since January 28, the date for all these quotes. Back then, the assumption was that Prime Minister Boris Johnson would visit Washington in mid-February. Almost immediately thereafter, those plans were blown away by America’s quarrel with the UK over the decision – Mr. Johnson’s decision – to allow Huawei to participate in building Britain’s 5G network. Mr. Johnson is now not expected to visit the United States until the G7 summit in June. Those are issues for another day. In the meantime, anyone trying to take the measure of an evolving U.S.-UK trade deal would do well to use Mr. Salmonsen’ s questions as his yardstick and Ms. Morris’s analysis as his litmus test for how any such agreement might be received, especially in the U.S. Senate.
SOURCES & LINKS
What Does the UK Want? is a link to GBD's transcript of the Q&A portion of our January 28 event, Beyond Brexit. . This was the source for today’s featured quote.

January 28 Event is a link to the page of the GBD website with materials from the Beyond Brexit colloquium, including audio recordings of each of the presentations. 
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