Post-Brexit trade talks: US deal could lead to genetically modified food entering UK markets Deal would see British economy grow just 0.16 per cent under the best-case scenario

A post-Brexit trade deal with the US could open the door to genetically modified food entering UK markets under terms set out by the Government ahead of the negotiations.

Details published by the Department for International Trade suggested the British economy would be just 0.16 per cent better off under its best case scenario, translating to a £3.4bn boost to the UK within 15 years.

But if only “substantial tariff liberalisation” is achieved, then the increase estimated in 15 years was put at 0.07 per cent, or £1.6bn, in the Governments’ preliminary assessment.

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As part of its negotiating objectives, the Government has insisted it will not lower food and animal welfare standards, but the document failed to rule out allowing genetically modified food into the UK.

The majority of processed food in the US contain genetically modified ingredients, and the UK will be free to allow such foods into the country once it leaves the EU, which has banned GM products.

When he became Prime Minister, Boris Johnson used his first speech to lay out his intentions to “liberate the UK’s extraordinary bioscience sector from anti genetic modification rules”.

And just last month, in his Greenwich speech Mr Johnson insisted the UK’s food rules would be “governed by science” and dismissed the fears of campaigners that American products could harm people’s health as “mumbo jumbo”.

Trade expert David Henig said: “It has long been suggested that GM food is one area the UK could make concessions to the US as we may as a country be more accepting that the EU.”

Trade Secretary Liz Truss maintained a tough stance ahead of the negotiations, warning the UK will “strike a hard bargain” and is prepared to “walk away if we need to”

Here i looks at other sectors that will be part of the trade talks that are set to begin later this month.

Food standards

The document says the Government “recognises public concern” about food standards and animal welfare.

It adds that the UK “will not compromise” on its high standards in these areas. It adds that “without exception” food imports into the UK will have to meet “stringent food safety standards”.

But what exactly this means remains to be seen. Food may be safe to consume, but consumers may not agree with the methods used to produce it, for instance the use of chemical washes to remove bacteria or injecting hormones to produce bigger animals.

Goods

The mandate states the aim of a free trade agreement with the US is to “secure broad liberalisation of tariffs on a mutually beneficial basis”, while reducing technical barriers to trading goods, such as agreeing on international standards.

Much will depend on how much the UK is willing to give in to US demands on areas such as food and regulatory standards. The UK sees gains for textiles, cars, and ceramics in a US trade deal.

Services

As services amount to around 80 per cent of the UK economy, the Government’s objective is to “secure ambitious commitments” from Washington to allow greater market access for UK service providers.

This includes a relatively weak ­request of “increased opportunities” for people to enter the US to provide such services. The UK is also seeking “expanded opportunities” for UK financial services in the US to ease friction in the trade of such services. Both sides are looking into holding discussions on financial regulations outside of the trade talks.

NHS

A major concern for the British public is the prospect of the health service being included in any trade deal. During the general election it emerged the White House explored the possibility of increasing the amount the NHS pays for drugs made in the US. The Government has insisted that neither the NHS nor the price the NHS pays for drugs “will be on the table”.

The document states the Government is fully committed to the guiding principles of the NHS – “that it is universal and free at the point of need”.

Public procurement

The Government is looking to increase access to the giant US public procurement market, which is worth around £1.4trn, but which is currently only open to the UK under World Trade Organisation rules.

The UK wants to negotiate greater access for British businesses, but it is likely to face a tough task as it will require the US to relinquish certain barriers to trade in this area, such as the federal government’s “Buy American” policy.