Chancellor Jeremy Hunt said on Thursday that a US-UK free trade deal much-trumpeted by Brexiteers would not be agreed “imminently” - dampening the likelihood that it could happen before the next General Election.
He made the admission after US president Joe Biden met Rishi Sunak in Belfast on Wednesday. Theyare not believed to have discussed such a trade pact.
Opening up the prospect of striking a quick US-UK free trade deal was one of the arguments made by Brexiteers ahead of the 2016 referendum.
Asked about such an agreement, Mr Hunt told Bloomberg News on Thursday it was “not something we think is imminent”.
Seeking to put a positive gloss on the stalemate over a deal, he added: “We will wait until the time is right.”
Leading experts say workers on average earnings in Britain will be around £1,300 worse off a year due to Brexit in the future, compared to what would have happened if the UK had stayed in the EU.
In the interview at a meeting of the International Monetary Fund in Washington, Mr Hunt was reported to have said that he expects the UK economy to have “turned the corner” by next spring, raising the possibility of a General Election then, though many MPs believe the autumn is a more likely time.
The Chancellor criticised the IMF for being too pessimistic about the UK after it projected economic growth to fall 0.3 per cent this year, and to be a paltry one per cent next year, with Italy being the only country in Europe with a worse forecast for 2024.
“We will do better than that,” Mr Hunt said.
“Our forecasts are significantly better.”
He also believes that inflation will fall from 10.4 per cent in February to around three per cent with the economy growing “in a year’s time”.
Trans-Atlantic tensions over Brexit have eased after Mr Sunak agreed the Windsor Framework with Brussels on Northern Ireland trade.
Mr Biden, who briefly visited Belfast on Wednesday before heading south, has stressed American support for the framework and for the Good Friday Agreement, signed 25 years ago.
He was on Thursday set to become the fourth US president to address the Irish Parliament, after John F Kennedy, Ronald Reagan and Bill Clinton.
Mr Biden, who is proud of his Irish heritage, also visited County Louth, where his ancestors lived.
Home Office minister Chris Philp rejected Unionist claims that Mr Biden is “anti-British”, partly because of his stance on Brexit, and insisted Mr Sunak had “extensive discussions” with the US president during their meeting.
Mr Philp defended the Prime Minister amid criticism that the bilateral talk between the two leaders appeared to be a scaled-back affair.
Asked on GB News about Mr Sunak’s schedule on Wednesday, Mr Philp said: “I don’t know exactly what the Prime Minister’s schedule was. I haven’t discussed it with him or No 10... Of course they did have extensive discussions in Belfast yesterday before President Biden’s speech.”
Asked whether he agreed with claims the president was anti-British, he replied: “No I don’t. I think the president, when he spoke to the King recently, agreed to come to the United Kingdom on a full state visit which is fantastic.
“I think he’s been here four times since becoming president so no, I don’t think - I would not accept that characterisation at all.”
