Rachel Reeves mentioned Britain’s buying and selling relationship with the EU is extra necessary than its alignment with the US as she prepares to fulfill together with her counterpart in Washington to debate a possible commerce settlement.
The Chancellor will meet the US treasury secretary Scott Bessent at the moment as she makes an attempt to make progress on a deal following a sequence of talks with different finance ministers on the Worldwide Financial Fund’s spring conferences this week.
Ms Reeves mentioned she understood why Donald Trump is attempting to deal with “world imbalances” in commerce.
Nonetheless, she advised the BBC: “I perceive why there’s a lot give attention to our buying and selling relationship with the US however really our buying and selling relationship with Europe is arguably much more necessary as a result of they’re our nearest neighbours and buying and selling companions.”
It comes after the Chancellor accused China of manipulating its financial system and build up “persistent commerce surpluses” which might be distorting world commerce.
In her a few of her strongest criticism of Beijing to this point, Ms Reeves mentioned China’s rise had additionally posed “many challenges” for different economies.
Addressing an viewers of diplomats and bankers on the British Embassy in Washington, Ms Reeves mentioned: “A technique by which the world has modified has been the rise within the final 25 years of China as an financial system.
“And that has created enormous advantages when it comes to cheaper items, extra innovation and extra alternatives to commerce. However it has additionally introduced many challenges.”
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