‘Exit from EU would cost Britain preferential trade relationship with US’

A senior US official has warned Britain against leaving the 28-nation European Union saying such a move would cost London economically.

Michael Froman, the US trade representative, says the UK, in the event of Brexit, would face trade barriers with America just like China, Brazil and India.

Froman stressed that Washington is not after a separate free trade deal (FTA) with Britain in case it leaves the EU bloc. The comments are a complete negation of arguments by Brexit proponents who say that the exit from the EU would help Britain prosper on its own and that London will be able to secure bilateral FTAs with its global trading partners.

According to Froman, EU membership gives Britain more leverage in negotiations. “I think it’s absolutely clear that Britain has a greater voice at the trade table being part of the EU, being part of a larger economic entity,” he said.

“This is a very important warning to the UK with President Barack Obama making it very clear that the United States wants Britain to stay inside the European Union. The US has always wanted Britain to be a member of the EU because it regards it a watchdog inside the bloc, someone who would look after the American interests. This warning comes at a time when the British awake is quite divided with growing number of British business people have an illusion that Britain can play the role as a kind of home corn”, Chris Bambery, a London-based political commentator told Press TV.

The US is Britain’s biggest export market after the EU. In 214, $54bn worth of goods entered in American markets.

Recently, the US inked a trade deal with 11 Pacific nations and wants to wrap up negotiations with the EU on the Transatlantic Trade and Investment Partnership (TTIP).

In case Britain opts for leaving the EU, it will not be part of TTIP hence, British car export which is second in the US would face tariff and could be at a disadvantage to international competitors. Other British goods may face the same problem if TTIP abolishes tariffs.

‘Britons divided over Brexit’

British voters are due to decide by the end of 2017 whether their country should remain in the EU. The issue was one of the top in Prime Minister David Cameron’s manifesto in the last general elections.

Cameron has, time and again, said that he would live up to his pledge but said not before he renegotiates London's relationship with Brussels.

The British government’s stance on the issue has already put Cameron at odds with many European leaders. The EU has expressed its readiness for talks with Cameron but the 28-member bloc stressed that its red lines on four key principles such as people's freedom of movement are "non-negotiable".

A group of cross-party lawmakers and business leaders have recently launched a campaign to encourage people to vote to quit the EU. But several opinion polls suggest people remain divided on the issue.

A recent ICM survey found that 44% of British voters would choose to remain a member of the EU if the referendum was held now. Polls also suggested that a majority of the UK’s biggest businesses back remaining in the bloc. Another survey done by polling firm Survation for the daily Mail in September showed 49% of Britons who would vote to remain in the EU.

“Increasingly polls are suggesting that outcome will be in favor of Britain to leave the European Union. It seems to be very close. The real problem for David Cameron is that he is loosing control on his Conservative party on euroceptic issue as growing number of his MPs are confident that Britain should quit the bloc”, Bambery added.