The United States and the United Kingdom recently announced plans to pursue a bilateral free trade agreement (FTA) after the latter’s expected March 2019 exit from the European Union. If done right, a US-UK FTA between the world’s largest and fifth-largest economies could unlock new opportunities for trade and investment and boost the economic welfare of both nations. So argues Daniel Griswold in “Leading the Way with a US-UK Free Trade Agreement.”

How Does the United Kingdom Rank?

By most measures, the United Kingdom is a key commercial partner of the United States:

It is the seventh-largest partner in two-way goods trade.

It is the third-largest source of tourists—bigger than Germany, France, and Italy combined.

It is the leading partner in services trade and foreign direct investment.

It is the fifth-largest market for US exports—behind only Canada, Mexico, China, and Japan.

Griswold argues that, once the United Kingdom leaves the European Union, a US-UK FTA has the potential of enhancing the value of the partnership between the two countries.

Goals of a US-UK FTA