📉 The recently signed trade agreement between the UK and the US has sparked controversy, as experts warn it could breach key rules of the World Trade Organization (WTO) regarding non-discrimination among trading partners. The preferential terms granted to American exporters have raised eyebrows both within the EU and in the UK Parliament.


🔍 What's the issue?

London has agreed to allow 13,000 tons of US beef into the UK tariff-free and slashed a 19% duty on 1.4 billion liters of US ethanol. However, without a full-fledged Free Trade Agreement (FTA), such preferential treatment cannot be extended to a single country under WTO rules—unless a formal exemption is granted. Otherwise, the same conditions must be made available to all WTO members.

💥 Could this lead to legal challenges?

Experts say yes. The European Union is already considering demanding the same concessions, warning that the UK may be undermining the WTO’s foundational principle of non-discrimination.

UK Parliament experts have flagged a “serious error” in the deal's tariff and quota clauses that may contradict WTO commitments.

Professor Michael Gasiorek of the University of Sussex stated:

"The reported changes in tariffs and quotas are likely inconsistent with WTO rules. If validated, the UK could face legal action."

UK Under Pressure: Aligning with WTO Rules Is Crucial

📘 One potential solution may be joining the WTO’s interim arbitration system, the MPIA (Multi-Party Interim Appeal Arbitration Arrangement). This alternative dispute resolution mechanism was created after the US blocked appointments to the WTO’s main appellate body. Joining would strengthen the UK's standing in global trade law and offer a framework for defending itself in future disputes.

Trade Secretary Jonathan Reynolds and UK WTO representative Simon Manley both indicated that joining MPIA is "actively being considered."

🤝 The move coincides with the UK’s efforts to "reset" relations with the EU, highlighted by a new trade declaration reaffirming commitments to fair, open, and sustainable commerce.

What’s Next?

📌 The UK faces a critical decision: either revise the terms of the US trade deal to meet WTO standards or risk legal confrontations with the EU and other global partners. Without a valid WTO exemption, the preferential treatment for US exports could damage Britain’s reputation and market certainty.

At a time of heightened geopolitical and trade tensions, the world is watching every move. London cannot afford a misstep.



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