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NEWS RELEASE 00-114; AUGUST 28, 2000
August 28, 2000
News Release 00-114
Inv. No. 332-409
FREE TRADE ARRANGEMENT AMONG THE UNITED STATES, MEXICO, CANADA,
AND THE UNITED KINGDOM WOULD INCREASE TRADE, REPORTS ITC
Trade between the United Kingdom and the United States would increase if a free trade
arrangement were to be instituted among the United Kingdom and the three North American
Free Trade Agreement partners (the United States, Canada, and Mexico), reports the U.S.
International Trade Commission (ITC) in its publication, The Impact on the U.S. Economy of
Including the United Kingdom in a Free Trade Arrangement with the United States, Canada,
The ITC, an independent, nonpartisan, factfinding federal agency, recently completed the
report for the U.S. Senate Committee on Finance. Following are highlights of the report:
The Impact on the U.S. Economy of Including the United Kingdom in a Free Trade
Arrangement with the United States, Canada, and Mexico (Inv. No. 332-409, USITC
Publication 3339, August 2000) will be available on the ITC's Internet site at www.usitc.gov.
A printed copy may be requested by calling 202-205-1809 or by writing the Office of the
Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
Requests may be faxed to 202-205-2104.
- In 1998, the United Kingdom (UK) imported over $100 billion in goods and services
from the three North American countries and exported about $65 billion to North
America. The United States is the UK's single largest trading partner and accounts for
about 90 percent of the UK's trade with North America.
- The United States and the UK are the world's largest providers of foreign direct
investment and are also the largest recipients of foreign direct investment. They are
also each other's largest source of foreign investment.
- Tariffs and other trade barriers between the UK and the North American countries are
already rather low, so eliminating these barriers is likely to have a small effect on trade
and output in the countries involved.
- Depending on what assumptions are made about the UK's trade with the rest of the
European Union, an elimination of tariffs on products traded between the United States
and the UK would increase U.S. imports from the UK by between 7 percent and
12 percent and U.S. exports to the UK would increase by between 11 percent and
- The effect on both the U.S. and the UK Gross Domestic Product (GDP) is measurable
but negligible; as a percent of GDP, it is close to zero for both countries. Results are
also small for the other countries.
ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade
and are generally conducted at the request of the U.S. Trade Representative, the Senate
Committee on Finance, or the House Committee on Ways and Means. The resulting reports
convey the Commission's objective findings and independent analyses on the subjects
investigated. The Commission makes no recommendations on policy or other matters in its
general factfinding reports. Upon completion of each investigation, the ITC submits its
findings and analyses to the requester. The ITC subsequently releases general factfinding
investigation reports to the public, unless they are classified by the requester for national
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