WEBVTT - Trump Hails UK Trade Framework as First of Many Tariff Deals 

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<v Speaker 2>Sent Donald Tump in the Oval Office talking about the

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<v Speaker 2>trade agreement with the UK. It's a framework and I

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<v Speaker 2>guess more negotiations over the coming weeks to get an agreement,

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<v Speaker 2>but wide ranging discussion there on global trade, particularly with

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<v Speaker 2>United Kingdom and the Kerrent joins us. He's a global

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<v Speaker 2>economy reporter for Bloomberg News. He's based down in Washington, DC. Hey,

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<v Speaker 2>and you listen to the president here, it looks like

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<v Speaker 2>there is a framework for an agreement between the United

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<v Speaker 2>States and in the UK. Put this into context. What

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<v Speaker 2>did you take away?

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<v Speaker 3>Well, there are certainly some micro details in it. I mean,

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<v Speaker 3>for example, on the US side, tariff on steels in

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<v Speaker 3>the UK going to zero. You have engines and plane

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<v Speaker 3>parts from Boeing also coming in power free. That's on

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<v Speaker 3>one side that's clearly a potential boost for those businesses

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<v Speaker 3>on that side, and then on the UK side, Brittiness

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<v Speaker 3>Committee to buying ten billion dollars worth of Boeing planes,

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<v Speaker 3>and there's going to be a coat for allowing US

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<v Speaker 3>beef thirteen thousand metro tons of the US beef into

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<v Speaker 3>the UK. Now as a rinkline that one in terms

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<v Speaker 3>of food standards is not going to change. That's probably

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<v Speaker 3>worth keeping any on. So you know, there's clearly some

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<v Speaker 3>winds there for steel and for autos on the UK side,

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<v Speaker 3>winds for maybe farmers, and a lift for Boeing on

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<v Speaker 3>this side and the US side, But you know, you

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<v Speaker 3>know large it's a long way from a true in

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<v Speaker 3>depth trade agreement. There is no change to the ten

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<v Speaker 3>percent minimum baseline tariff that will go on UK goods

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<v Speaker 3>coming to the US, and that's noteworthy because if the

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<v Speaker 3>US isn't willing to drip that for both an economic

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<v Speaker 3>and a security ally like the UK, then you question

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<v Speaker 3>whether that would change for anybody. So it's a it's

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<v Speaker 3>interesting that they got it done. Parts of its significant

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<v Speaker 3>for the industries and industries involved, but it's not a

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<v Speaker 3>sweeping Perhaps some of the headlines might suggest.

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<v Speaker 4>Talk to us about the the ag part, so the ethanol,

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<v Speaker 4>the corn, that part of it. I mean, the headline

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<v Speaker 4>number sounds really good and trade wars hurt farmers. We

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<v Speaker 4>saw that in the first administration for President Trump. What

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<v Speaker 4>do you think the takeaway from that will be?

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<v Speaker 3>Well, we heard the culture is actually brook Rowlands hailing.

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<v Speaker 3>It is a big deal for US farmers in particular.

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<v Speaker 3>And they were chouting for example, and the UK bussor

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<v Speaker 3>mandleson maket the same point they were chouting disagreement on

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<v Speaker 3>the beef going in tower free quota of thirteen thousand medicines.

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<v Speaker 3>That would be interesting that those open up potential new

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<v Speaker 3>market access for US farmers, no question. But within that

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<v Speaker 3>though I mentioned earlier, the food standard part of it

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<v Speaker 3>isn't changing, so we'll have to see how that impacts

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<v Speaker 3>in practice, how it impacts in practice terms of how

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<v Speaker 3>those imports or exports do workouts the UK in terms

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<v Speaker 3>of walts it out in and what the demand is.

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<v Speaker 3>But you know, on paper it's it's a concession on

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<v Speaker 3>the UK side for US farmers.

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<v Speaker 2>And thank you so much for your reporting there in

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<v Speaker 2>the current global economy reporter for Bloomberg News. He's based

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<v Speaker 2>down there in Washington and DC. Let's go across to

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<v Speaker 2>London right now, get that point of you. Joe Mays

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<v Speaker 2>Joints and Serry covers the economy, the UK economies based

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<v Speaker 2>in our London studios over there. Hey, Joe, you listened

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<v Speaker 2>to the President speak and the Prime Minister via phone.

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<v Speaker 2>What's the takeaway over there in London do you think?

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<v Speaker 3>Well?

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<v Speaker 5>The UK Government is trying to sell this as a

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<v Speaker 5>major political win for them. They are saying that the

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<v Speaker 5>particularly the reduction in tariff's on cars on of that

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<v Speaker 5>one hundred thousand quota down to ten percent. They say

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<v Speaker 5>that's a big win. And also steel tariffs going from

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<v Speaker 5>twenty five percent to zero and the same aluminium is

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<v Speaker 5>also a good news story for steelmakers in the UK.

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<v Speaker 5>But nevertheless, there is criticism of this still already from

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<v Speaker 5>opposition parties, pointing out that the UK is still in

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<v Speaker 5>a worse position than before Donald Trump became presidents, still

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<v Speaker 5>with that ten percent tariff on goods, still indeed having

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<v Speaker 5>that ten percent tariff on cars even under a quota.

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<v Speaker 5>So yeah, it's a limited victure I think seen in

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<v Speaker 5>the UK, but that's never less welcome.

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<v Speaker 4>How does Prime Minister Cure Starmer sell this to say

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<v Speaker 4>Europe Like, Hey, I did this deal, but you should

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<v Speaker 4>also do a deal with me. And this is why

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<v Speaker 4>when there's going to be some tension there between and

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<v Speaker 4>say the US and the EU.

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<v Speaker 5>Yeah, I think the UK has been quite careful with

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<v Speaker 5>this agreement with the US not to commit to anything

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<v Speaker 5>that would materially obstruct them from doing a closer deals

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<v Speaker 5>economically with the EU. So, for example, on food standards, yes,

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<v Speaker 5>we do have provision in this agreement for beef more

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<v Speaker 5>beef imports into the UK from the US, but the

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<v Speaker 5>UK has said they are maintaining very strict standards on food,

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<v Speaker 5>for example, which are a key redline for the European Union.

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<v Speaker 5>So I think that what's happened here is the UK

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<v Speaker 5>is still trying to walk this tightrope of economic ties

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<v Speaker 5>between the USNU and has managed to broadly maintain that here.

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<v Speaker 5>But it has meant that the scope fumbition for this

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<v Speaker 5>US deal has had to be limited.

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<v Speaker 2>All right, Joe, thanks so much for joining us. I

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<v Speaker 2>really appreciate getting a couple of minutes of your time. Jomes.

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<v Speaker 2>He covers a UK economy for Bloomberg News. He's based

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<v Speaker 2>in our Queen Victoria Street station over there.

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