‘America cannot operate by itself’: Peter Mandelson on why Trump needs Britain
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Former secretary of state Peter Mandleson tells Lewis Goodall why the US and the UK could form a “solid partnership”.
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In brief…
- Former secretary of state Peter Mandelson speaks to Lewis Goodall about Donald Trump’s presidency.
- Mandelson argues Keir Starmer has made a good start in handling Trump, but warns of a “challenging” road ahead.
- He says there is an opportunity to strike a trade deal with the US.
What’s the story?
Donald Trump will quickly realise he needs Britain as an ally, former secretary of state Peter Mandleson has told The News Agents..
Mandelson, a man once dubbed Tony Blair’s “Prince of Darkness”, is tipped to become Starmer’s man in Washington.
While he acknowledges it won’t be straightforward for Britain to deal with the president-elect, it is more important than ever to get Trump on side.
“Be under no illusions here, the Trump presidency is profoundly going to affect the security and the economic well being of the rest of the world, the rest of Europe, and Britain included,” he says.
In an interview with Lewis Goodall, Mandelson explains how the Labour government should approach the incoming US administration.
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The US is the UK’s largest trading partner, with Britain last year exporting goods worth £60 billion to the States.
But the president-elect said during his campaign that he would slap a 10% tariff on foreign imports to the US, and this could complicate matters.
While Mandelson says Starmer has made an “extremely good start in handling Trump”, he admits it will be a “very difficult, challenging and transactional relationship with the new American administration”.
Since leaving the EU, Britain has yet to sign a federal trade deal with America, although there have been agreements made with individual states such as California.
But it is crucial to build on this, Mandelson says, particularly since Britain left the European Union and gave up “all the rights of access and presence in the single market”.
Mandelson says the UK has also “failed to pick up alternative trade opportunities and agreements elsewhere in the world”.
That’s why forming a close relationship with the US “has to be a priority”.
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What should Britain do next?
Going forwards, Mandelson says the UK needs to “get ourselves into a position where we have a relationship that enables us to transact business and policies”.
It is this word - transactional - that Mandelson keeps coming back to.
It may be because of Trump’s business background. While he is now in politics, some argue his approach mirrors his real estate history and his love for making deals.
“It's going to be an intensely transactional experience, the next four years, between Mr. Trump and the rest of the world,” Mandelson adds.
But he argues it may not be so difficult to get Trump on board with Britain.
“He [Trump] will realise very quickly, and I suspect he already does, that America cannot operate in the world, literally, by itself.
“It does need allies, it does need partners, it does need to work with other like-minded nations, both in respect of the world’s security and the state of the global economy,” he says.
What should a trade deal with the US look like?
Mandelson has urged Starmer to avoid a “bells and whistles, all singing, all dancing, trade agreement”.
Not least, he says, because “there's so much imbalance built in”.
Instead, Mandelson argues, Britain should focus on specific areas of trade policy.
“We're both very advanced, digital and data driven economies. We are high tech economies.
“I think there are many areas to do with the digitalisation of trade issues, data technology, both in the civil and military spheres, where we could form a good partnership.”
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