Can Britain Be a ‘Sensible, Stable’ Haven in Trade War? Some See Potential.

Great Britain has become a basic word for self -inflict economic damage and instability after Brexit and former Prime Minister Calamiti cuts at Liz Truss’s taxes. But now, the country sees the opportunity to act as a paradise from the commercial war which is the tinkling of markets and the global economy.

Last week, President Trump limited the US rates in Great Britain to “Basic Line” rate of 10 percentAnd his administration has engaged in interviews on a commercial agreement focused on technology. Although an agreement has yet to materialize, Great Britain has avoided being a main objective of Mr. Trump’s wrath for commercial relations.

To tell the truth, part of this advantage was sold late on Wednesday, when Trump said he would stop for 90 days the highest “mutual” rates on countries other than China, setting all the other rates to a 10 percent “universal”. This leaves Great Britain subject to the same general rates as a myriad of countries that have not been so stimulated to Washington.

However, the European Union, Japan, Vietnam and dozens of others now have to negotiate to prevent the highest rates from being reset, raising the stakes.

Yvette Cooper, British home secretary, declared Thursday that British officials were trying to strengthen commercial relations with other countries, including the European Union.

Mrs. Cooper said that Great Britain was concentrated on being a “stable place” for investors, highlighting it Universal Studios has announced its intention to build a huge themed park in the countryHe is first in Europe.

Mr. Trump’s backtracking on mutual rates “strengthens the strategy and approach we are adopting, which must be pragmatic, to follow this constant course, rather than being affected day by day,” said Mrs. Cooper.

“The United Kingdom has not been short of policies that damage the economy in the last ten years,” wrote Andrew Wishart, Berenberg’s economist in a recent research note. “But the assault of the American administration to foreign trade will overshadow the false steps of the United Kingdom.”

Last summer elections delivered Labor party of Prime Minister Keir Starmer A great majority in Parliament. Sometimes the government has fought to find its foot, but has not undergone the instability that has recently hit other large countries in Europe, including Germany and France.

So far, the British government has not reacted against the US rates and instead focuses on support for local companies. This week, Mr. Starmer Rules loose on the automotive sectorwhich is facing a 25 percentage rate of the sector and the pharmaceutical sector, which appears The next in line for us withdrawals. The government “will protect British affairs from the storm,” said Starmer.

“We are an open market economy,” said Alastair King, the lord of the city of London, who acts as an ambassador for financial services, in an interview at the end of last month. “We have a great desire to do international affairs”. London could take advantage of being a “neutral” position in international markets, he added.

Far from trade, Great Britain also sees other opportunities. Scientists and researchers in the United States have shown growing interest in European universities Among the attacks on the financing of research at the American institutions. After leaving the European Union five years ago, the British government has made an agreement to regain access to the research and innovation of the blockade financing program.

“Our place in the world as a trusted partner has the potential to go to another level,” said Hugh Brady, president of Imperial College in London, in a recent interview. The country is seen as “sensitive, stable, ambitious”, he said, with citizens who “also appreciate the importance of science”.

Great Britain still has to do with a variety of cheap challengesincluding the increase in private investments, the strengthening of public services and the reduction of debt. It would not be immune to the Spillover from a global commercial war. British government bonds are also vulnerable when there is a turmoil in debt markets. Due to the open economy of the country and the vast financial sector, “global risks are particularly relevant for the financial stability of the United Kingdom,” said the Bank of England’s financial policy committee on Wednesday.

Wishart by Berenberg said that the government plan to improve its finances and other actions, how to make it easier to build houses and infrastructures and a commitment to keep taxes on companies stable, would help “improve the reputation of the United Kingdom as a place to invest”.