UK Will Push For Closer EU/USA Trade Relationship

by Robert Lee, Tax-News.com, London

30 May 2005

UK Chancellor Gordon Brown last week made closer economic cooperation with the US and 'open trade' two of the headline goals for the UK's Presidency of the European Union, beginning on 1st July.

In a statement addressed to the British Parliament, but aimed at the EU's ECOFIN meeting of finance ministers in Luxembourg next week, Brown expressed concern about sluggish growth in the Eurozone (which excludes the UK) and called on the European Union to adapt to the changing global economy.

"Europe must adapt to the changing balance of global economic activity and the rise of fast-growing emerging economies," he said. "Only a globally-oriented Europe -- focused on macro-economic stability, marrying flexibility and fairness in employment markets, championing enterprise and innovation, and open trade -- can forge a new route to social justice in a global age."

The Chancellor's statement included initiatives on competition and regulation of industries, the labor market, state aid and innovation, and international cooperation, especially with the United States. All regulatory proposals should be tested for their impact on competitiveness, Brown said. Business would be given a central role in rule-making and committees on banking, securities and insurance would report annually to member states, and the UK will push for total liberalisation of the energy market by 2007.

There is a long list of issues on which the UK is at odds with many of its continental neighbours, including its budget rebate, the Common Agricultural Policy, and its waiver with regard to the 48-hour work week. Using wording which will particularly irritate France, Brown says he wants an "ambitious new economic partnership" with the United States "including a barrier-free transatlantic financial market".

With Brown on the free trade warpath and ex-Labour minister Peter Mandelson as the all-important Trade Commissioner in Brussels, it looks as if the French will have a fight on their hands during the rest of the year.

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