MPs Warn UK Agreements with Donald Trump are 'Unstable'.
Elected officials have raised concerns that the United Kingdom's recent agreements with Donald Trump are "fundamentally unstable." This comes after revelations that a so-called "milestone" deal on pharmaceutical tariffs, which promises zero tariffs in exchange for the NHS facing higher prices, lacks any formal legal text beyond vague headline terms contained within government press releases.
Lacking Legal Footing
The deal on drug tariffs, described as a "generational" achievement, remains an "statement of intent" without formal ratification. It has been highlighted that the public statements from the UK and US governments present the deal in divergent terms. The British version emphasizes securing "zero per cent tariffs" as a singular success, while the American announcement highlights the expectation for the NHS to pay higher prices for new medications.
"There is a serious risk that the UK government has agreed to terms to raise drug prices in return for only a pledge from President Trump," said David Henig, a trade policy analyst. "History shows he has form for not following through on agreements."
Wider Concerns Amidst a Suspended Agreement
Anxieties have been intensified by Washington's action to put on ice the £31bn "tech prosperity deal", which was previously called "a huge leap forward" in the bilateral relationship. The US claimed a lack of progress from the UK on lowering trade barriers as the reason for the pause.
Additionally, concessions promised for British farmers as part of an earlier tariff deal have yet to be formally signed off by the US, despite a fast-approaching January deadline. "It is our belief that the US has not yet signed off the agreed beef export quotas," said Tom Bradshaw of the National Farmers' Union.
Anxiety Behind Closed Doors
In confidential discussions, ministers have admitted unease that the government's deals with Washington are flimsy and unreliable. One minister was quoted as stating the series of agreements as "built on sand," while another described the situation as the "prevailing condition" in the transatlantic relationship, marked by "increased uncertainty and instability."
Layla Moran, a senior MP on the health committee, stated: "Perhaps most shocking than Trump's temper tantrums is the UK government's naive belief that his administration is a reliable partner. The NHS is of vital importance."
Government Downplays Risks, Points to Gains
Officials have downplayed the possibility of the US backing out of the pharmaceuticals deal. One source noted the US pharmaceutical industry itself had been pushing for the agreement, desiring stability on imports and pricing, making it more concrete than the paused tech deal.
Officials acknowledge that instability is inherent in dealing with the Trump administration. However, they maintain that the UK has obtained tangible results for businesses, such as preferential tariff rates compared to other nations. "Securing 25% steel tariffs, which is better than the rate for the rest of the world, is a solid gain," one official said.
Yet, delays have emerged in carrying out the initial US-UK accord. Promised access for British beef have not materialized, and the commitment to "eliminate duties on UK metals" has not been fulfilled, with tariffs fixed at 25%.
As negotiations continue, the two sides have scheduled to restart talks on the paused tech prosperity deal in January, following what were described as "productive" meetings between UK and US officials in Washington.