The UK has to force its way into a huge trade deal between the US and European Union in order to keep its position as the biggest investor in the American economy, according to a report by the Confederation of British Industry.
British businesses are the biggest investors in the US economy, pumping in $449 billion (£342 billion) and supporting more than 1 million jobs.
The UK invested $76 billion more than Japan — the next largest investor — and nearly $200 billion more than Canada, which shares a border with the US.
The CBI is pushing for the UK to join the Transatlantic Trade and Investment Partnership (TTIP), which is a huge free trade deal between the US and European Union.
The group is concerned that the UK’s vote to leave the EU could result in Britain’s economy missing out on the TTIP deal and free trade benefits with the US.
The UK represented 15% of the $2.9 trillion of foreign direct investment in America last year, the CBI said, while Indian and Chinese investment combined did not make 1%, according to the CBI figures.
Here is the breakdown in a handy chart from the CBI:
The UK is struggling to find its economic place in the world following the Brexit vote because the EU is the biggest consumer of UK services exports. On Thursday, the Institute for Fiscal Studies said l
osing membership of the European Union’s Single Market could cost the UK 4% of economic output.
The fallout could weaken the government’s finances, requiring a budget tightening of as much as £39 billion ($50.8 billion) in a worst-case scenario, the IFS said, adding two years onto policies of austerity.
Ben Digby, the CBI’s international director, said: “As the Government negotiates our exit from the EU, a clear strategy will be needed to boost trade with partners, old and new, across the globe. Markets should be carefully prioritised, in consultation with business, to lay the foundations for deep and comprehensive future trade and investment relationships, and the USA must be at the top of that list.”
“The UK stood to be up to £10 billion a year better off upon implementation of the Transatlantic Trade and Investment Partnership between the USA and the European Union, so the Government should also explore the possibility of joining the final deal, as a third party,” Digby said.
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