On Thursday, U.S. Treasury Secretary Steven Mnuchin announced that the United States is now prepared to negotiate with the United Kingdom with a post-Brexit trade deal as soon as the U.K. is prepared.
According to Secretary Mnuchin at the World Economic Forum held in Davos, the United States has special economic relations which they expect to continue. He also stated that the U.S. would be ready as soon as London is prepared to negotiate a trade deal.
The United Kingdom which held the Brexit referendum last June 2016 following British Prime Minister Theresa May’s move to invoke Article 50 of the Lisbon Treaty officially leading to the United Kingdom’s Withdrawal process from the European Union.
While negotiations between London and Brussels regarding the new regulations during the transition period which would take place in two years have started last June and is expected to end in March next year.
Brexit 2017 Effect
Following the Brexit vote last 2016, a series of forecasts on the negative effect of United Kingdom’s decision to leave the European Union has appeared with others seeing huge losses for the British economy in the years where negotiations are set to take place.
While the Brexit has affected the economy of London over the past year with the cost of living in the United Kingdom rising by as much as 3% during the second half of 2017 while the consumer spending has declined due to the weak performance of the British pound back then.
Currently, the economy of Britain has improved significantly despite the previously negative outlook following the Brexit vote last 2016 due to an overall global growth as well as an improvement in the economy of other countries as well. The country has recently been revealed to be one of the economies who are at risk of growing slower than expected along with Italy and Japan.
During the first three-quarters last year, the economy of the country recovered slower compared to other G7 country and is expected to trail behind Germany and France in the next couple of years.
Just recently, Bank of England governor Mark Carney stated that 10 billion pounds a year are being spent by Britain annually which are costs led by Brexit. Carney also stated that the economic growth losses that he expected were to the equal to two-thirds or three-quarters of the 350-million pound boost to the public spending claimed by supporters of Brexit to be its key advantage.