Britain could become an “associate” member of a new North American Free Trade Area (Nafta) once Brexit has taken place, it has emerged.
The prospect of the UK becoming part of a North American trade bloc under Mr Trump's presidency could be on the cards with the heightened flexibility Brexit is expected to bring and the President-elect's disapproval of the deal in its current form.
Moreover, US senator Newt Gingrich, who first proposed the idea of the UK joining Nafta in the 1900s, is now being tipped in some quarters to become the President-elect’s secretary of state - increasing the likelihood of talks about the UK's involvement, according to The Telegraph.
Nafta looks set to be either scrapped or reformed under Mr Trump after he repeatedly criticised it during his presidential campaign, describing it as “the worst trade deal maybe ever signed […] in this country” and blaming the deal for the decline of manufacturing jobs and the influx of immigrants from Mexico into the US.
Since Mr Trump’s election victory, Canada and Mexico have said they are willing to open a “dialogue” about Nafta amid fears that it is in jeopardy, meaning reform is likely to take place.
Mr Gingrich raised the idea of Britain joining when he was Speaker of the House of Representatives in 1998, and received backing from Margaret Thatcher and right-wing Eurosceptics in the UK, but was rejected by the Labour government.
In November 1999 the US Senate Finance Committee proposed a study to see if the UK could be brought within the aegis of Nafta, but it was made clear that Britain would have to leave the EU to join.
Conservative MPs have welcomed the idea of British membership in the trade bloc, saying Britain and the US have similar policies towards the free market and describing it as an opportunity that comes with Brexit, which is likely to take place in March 2019.
What experts have said about Brexit
What experts have said about Brexit
1/11 Chancellor of the Exchequer Philip Hammond
The Chancellor claims London can still be a world financial hub despite Brexit “One of Britain’s great strengths is the ability to offer and aggregate all of the services the global financial services industry needs” “This has not changed as a result of the EU referendum and I will do everything I can to ensure the City of London retains its position as the world’s leading international financial centre.”
2/11 Yanis Varoufakis
Greece's former finance minister compared the UK relations with the EU bloc with a well-known song by the Eagles: “You can check out any time you like, as the Hotel California song says, but you can't really leave. The proof is Theresa May has not even dared to trigger Article 50. It's like Harrison Ford going into Indiana Jones' castle and the path behind him fragmenting. You can get in, but getting out is not at all clear”
3/11 Michael O’Leary
Ryanair boss says UK will be ‘screwed’ by EU in Brexit trade deals: “I have no faith in the politicians in London going on about how ‘the world will want to trade with us’. The world will want to screw you – that's what happens in trade talks,” he said. “They have no interest in giving the UK a deal on trade”
4/11 Tim Martin
JD Wetherspoon's chairman has said claims that the UK would see serious economic consequences from a Brexit vote were "lurid" and wrong: “We were told it would be Armageddon from the OECD, from the IMF, David Cameron, the chancellor and President Obama who were predicting locusts in the fields and tidal waves in the North Sea"
5/11 Mark Carney
Governor of Bank of England is 'serene' about Bank of England's Brexit stance: “I am absolutely serene about the … judgments made both by the MPC and the FPC”
6/11 Christine Lagarde
IMF chief urges quick Brexit to reduce economic uncertainty: “We want to see clarity sooner rather than later because we think that a lack of clarity feeds uncertainty, which itself undermines investment appetites and decision making”
7/11 Inga Beale
Lloyd’s chief executive says Brexit is a major issue: "Clearly the UK's referendum on its EU membership is a major issue for us to deal with and we are now focusing our attention on having in place the plans that will ensure Lloyd's continues trading across Europe”
8/11 Colm Kelleher
President of US bank Morgan Stanley says City of London ‘will suffer’ as result of the EU referendum: “I do believe, and I said prior to the referendum, that the City of London will suffer as result of Brexit. The issue is how much”
9/11 Richard Branson
Virgin founder believes we've lost a THIRD of our value because of Brexit and cancelled a deal worth 3,000 jobs: We're not any worse than anybody else, but I suspect we've lost a third of our value which is dreadful for people in the workplace.' He continued: "We were about to do a very big deal, we cancelled that deal, that would have involved 3,000 jobs, and that’s happening all over the country"
10/11 Barack Obama
US President believes Britain was wrong to vote to leave the EU: "It is absolutely true that I believed pre-Brexit vote and continue to believe post-Brexit vote that the world benefited enormously from the United Kingdom's participation in the EU. We are fully supportive of a process that is as little disruptive as possible so that people around the world can continue to benefit from economic growth"
11/11 Kristin Forbes
American economist and an external member of the Monetary Policy Committee of the Bank of England argues that the economy had been “less stormy than many expected” following the shock referendum result: “For now…the economy is experiencing some chop, but no tsunami. The adverse winds could quickly pick up – and merit a stronger policy response. But recently they have shifted to a more favourable direction”
Tory MP Jacob Rees-Mogg told The Telegraph: “What could be bad about it? As long as it does not stop us doing free trade deals with other people too.
“This is one of the great virtues of Brexit – we can look at all these things and if we think they are good we can tag along. We should follow up every opportunity because that is the wonderful position we are in – it is such an exciting position for the UK to be in. Prior to 23 June we could not have had this discussion.”Reuse content