As transatlantic trade negotiations heat up, UK Chancellor of the Exchequer Rachel Reeves has drawn red lines: Britain won’t lower its regulatory standards in exchange for a trade deal with the United States.
Guarding Key Standards
In a televised interview ahead of her Washington meeting with U.S. Treasury Secretary Scott Bessent, Reeves emphasized that British benchmarks on food safety, digital protections, and road regulations are "non-negotiable," closely mirroring European Union norms. "We’ve just passed the Online Safety Act and the safety, particularly of our children, is non-negotiable for the British government," she added.
Targeted Concessions
While maintaining its stance on non-tariff rules, Britain signaled flexibility elsewhere. Reports suggest the UK may reduce tariffs on U.S. automotive imports from 10 percent to 2.5 percent—a move designed to keep domestic standards intact while advancing dialogue.
New Trade Package
In parallel with her IMF Spring Meetings agenda, Reeves unveiled a trade policy package including a review of the customs exemption for low-value imports (goods under £135), a long-standing gripe for British retailers who say it tips the scale in favor of overseas e-commerce. Stakeholder consultations are due next month.
The British Trade Remedies Authority will also be bolstered with extra resources to speed up probes into unfair practices like dumping, support small and medium-sized enterprises, and enhance trade-data monitoring to spot emerging threats.
Balancing Global Pressures
Reeves stressed the importance of free, open trade as a driver of growth: "We must stand up for free and open trade\u00151 crucial to deliver our Plan for Change to make everyone better off." The UK now finds itself navigating between U.S. protectionist impulses and the EU’s assertive digital regulations. Recent fines totaling 700 million euros imposed on Apple and Meta under the EU’s Digital Markets Act underscore Brussels’ drive to rein in big tech.
Analysts note that any dilution of UK standards could jeopardize deeper alignment with EU rules. For now, Britain is betting on a careful balance: upholding rigorous safeguards at home while seeking pragmatic, selective deals abroad.
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'No compromise on regulation': UK draws red lines for U.S. trade talks
cgtn.com
