Last week, Britain and the EU kicked off the first round of talks on their future relationship. While the two sides are set for a big showdown in the upcoming months – as they have starkly different views on what constitutes fair competition between their economies – a trade deal with the US appears to be a lot more straightforward. In February, US President Donald Trump boasted that a trade pact with Prime Minister Boris Johnson would be “fantastic and big”.

And according to figures released by the British government last week, a US-UK trade deal could boost transatlantic trade by some £15.3billion, and add £3.4billion to the British economy.

The US is Britain’s largest trade partner after the EU, accounting for 19 percent of all exports and 11 percent of imports in 2018.

According to Ukip MP Douglas Carswell the deal could be struck by the end of the year.

He said: “I suspect there will be a desire to have something signed before November 2020.

“I think a US-UK free trade deal is pretty much lined up.

“There are vested interests on both sides.

“America tends to be a bit protectionist but most of the thinking has been done now.”

The prominent Brexiteer explained: “The reason why I think it is so straightforward to do is because I believe the basic approach that Donald Trump and Boris Johnson want is mutual standards and recognition.

“Meaning: If it is legal to buy something in Clacton, it should be legal to buy it and sell it in North Carolina.”

Moreover, Mr Carswell argued that the FTA could deal a huge blow to the EU – as German businesses, for example, might find relocating to post-Brexit Britain incredibly profitable.

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He said: “I am fascinated by this because one of the implications is that we could have an FTA with North America fairly soon.

“But there is an interesting question.

“Imagine you are a German car manufacturer and you have already seen a 5 to a 7 percent decline in the European car market.

“But in a few years time, you realise that if you relocate your factory to Sunderland, you will be able to sell your Audis and Mercedes tariff-free to the US.

“That is why I think a trade deal with the US is so important and so significant.

“Up until now the assumption on the EU side side has been that this is zero sum game.

“An economy of 65 million people against an economy of 500 million people.

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“It is not. That’s not how trade works.”

The talks with the EU were expected to begin in the UK this week.

However, coronavirus fears dealt a blow to the UK’s trade ambitions after a delegation of six US states cancelled the visit.

Representatives of Virginia, Tennessee, Georgia, Mississippi, Maryland and Oregon were meant to meet Department of International Trade (DIT) officials to discuss opportunities for state-level agreements with the UK.

However, meetings between the two sides have been postponed due to fears about the global outbreak.

The teams had planned a dinner of oysters and Guinness on St Patrick’s Day, but this has also been called off.

Allie Renison, head of EU and trade policy at the Institute of Directors, said the outbreak had come at an unfortunate time for the Government, which aspires to create a “Global Britain” through trade deals post-Brexit.

She said: “If this becomes the new normal that becomes a huge issue for the Government in terms of trying to match the narrative with the ambition.”

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