Comment

Brexit won't mean Brexit if we let Covid ground a US-UK trade deal

The Government risks handing control of our international connectivity and competitiveness to European rivals

There has been a lot of talk in recent weeks about a post-Brexit trade deal with the United States. The ambition for a comprehensive new deal with the world’s biggest market is welcome and sure to boost jobs and growth on both sides of the Atlantic. But there’s one key element missing from discussions on this new special relationship. How are we going to trade with the US when all of the flights that carry our goods and traders remain grounded? 

The US accounts for 20 per cent of Britain’s exports today (around £121 billion) and the vast majority of those exports go via planes. What good is a new free trade deal if we have no way to get our goods and services to market?  

A new report by York Aviation underlines just how critical it is that we restart the US-UK economic engine. We all know that US-UK travel has collapsed due to Covid-19 restrictions, but the report reveals that each week travel remains closed costs UK businesses over £212 million. By the end of 2020, we’re on track to have lost over £11 billion in GDP solely because of the frozen US-UK links – that’s equivalent to nearly 8 per cent of our NHS budget.

As things stand, this will only get worse. The more time that passes with our borders effectively shut, the more American customers will lose touch with their British suppliers and find other providers. The more American tourists will discover new destinations for their holidays, putting at risk the nearly £4 billion they spend in Britain annually. The more American investors will find new projects and ventures jeopardising up to 27 per cent of the UK’s foreign direct investment. 

But it doesn’t have to be this way. As Britain heads towards the end of the Brexit transition period, everything possible needs to be done to fully reopen Britain’s trading routes with the US. 

That starts first with a relentless focus on safety. Already, UK airports and airlines have implemented a raft of Covid-secure measures designed to keep people safe – from mandatory face coverings, to the latest in ultraviolet sanitising technology and extensive hand hygiene. 

We now need the Government to take the next step. Building on the recently introduced regional travel corridors, we urge ministers to work with the industry to establish a pilot travel corridor between New York City airports and the UK, using passenger-testing solutions to safeguard the route. New York is widely seen to have had one of the toughest responses to Covid-19. What message does it send to our US partners about our willingness to do a future deal if we won’t use the solutions available to us to enable safe trade now?

We need to walk before we can run and no one is advocating opening up the entire US market overnight. But with a well-designed pilot  could help open up a travel corridor with the UK’s most valuable trading routes. At Heathrow, the tests would be provided privately and wouldn’t take away resources from the NHS. If this model works safely, the Government could expand the programme to other areas with low Covid rates in the US. 

Due to the UK’s restrictive quarantine regime, aviation –  which facilitates trade, foreign direct investment and any green shoots of safe tourism – is more likely to be funnelled to Europe rather than the UK, stifling the economy, risking jobs and threatening the future of our carriers and airports. The Brexit process should enable the UK to "take back control", but by failing to support this country’s aviation industry, the Government risks handing control of our international connectivity – and competitiveness – back to European rivals in Paris, Frankfurt and Amsterdam.

Some may say that as an airport CEO I’m biased, and of course want flights to restart purely to serve my business. It’s true, I want aviation to get back to normal as quickly as possible for the 76,000 people that work at Heathrow and depend on the success of the airport for their livelihoods. But if you believe in Brexit and a truly global Britain that leads the world in trade, restarting safe travel and trade with the US must also be your battle. As long as the skies between the US and the UK remain closed, Brexit will not mean Brexit.

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