Unworthy Trade Agreement According to Economist Holding a Nobel Prize
A Nobel-winning economist calls UK-US trade deal a dud
In a candid conversation with Sunday Morning with Trevor Phillips, famed economist Joseph Stiglitz bashed the newly announced UK-US trade deal, dubbing it as "not worth the paper it's written on." Here's the lowdown on Stiglitz's converse opinion about the agreement.
Sharing a dim view, Stiglitz expressed his doubts on the deal's merits, pointing out Trump's controversial history with similar agreements. It's important to note that Trump has previously enacted deals with Canada and Mexico, only to slap them with increased tariffs shortly after his re-election.
"I would view it as playing into Trump's strategy," Stiglitz stated, referring to the president's "divide and conquer" tactics. He continued, "He's going after the weakest countries and sort of putting the stronger countries in the back."
The UK-US trade deal turmoil came about due to Trump's "Liberation Day" announcement, which saw him hike import tariffs for multiple countries. As a result, global markets took a nose dive. Despite China initially facing tariffs of 34%, Beijing imposed retaliatory rates, starting a trade war between the two economic giants. Currently, they impose tariffs exceeding 100% on each other.
However, there's a glimmer of hope as China and the US have met for high-stakes negotiations over the weekend. As per Stiglitz, it's clear that "the US is very dependent on China in so many ways." China's response to Trump "made it very clear," indicating that China is negotiating from a position of strength.
When questioned about the UK's focus on the US instead of strengthening its ties with the EU, Stiglitz strongly advised that the UK would have fared better in striking a deal with the EU. If the UK had done so, "you could have done better than what you've done." Stiglitz cautiously warned the UK, "I pray for you" in case Trump isn't satisfied with the deal.
Among the terms of the UK-US trade deal, British car and steel exports to the US will be subject to reduced tariffs. Meanwhile, the UK agreed to eliminate a tariff on ethanol, a key ingredient in producing beer.
This trade deal also opens up an agricultural exchange, allowing US farmers to access the UK market for the first time. However, UK food standards on imports remain unchanged.
- Joseph Stiglitz, a renowned economist, criticized the UK-US trade deal as a "dud" in a conversation with Trevor Phillips.
- Stiglitz raised concerns about the deal's merits, citing Donald Trump's history of controversial trade deals and tariff impositions.
- Stiglitz also highlighted the US' dependence on China and suggested that China is negotiating from a position of strength.
- The UK, according to Stiglitz, could have potentially fared better by focusing on strengthening ties with the EU instead of the US.
