The U.S. and the United Kingdom will begin talks on a potential trade deal in the “near future,” a USTR official told Inside U.S. Trade on Thursday, adding that the countries are “rightfully focused” today on curtailing the spread of COVID-19.

The U.S. released its negotiating objectives for a deal with the UK in February 2019, and the UK followed suitlast month. The two countries have since shifted much of their energy to fighting the pandemic.

“Both the United States and the United Kingdom are committed to starting trade negotiations as soon as possible,” a USTR official said. “At the present time, both our governments are rightfully focused on stemming the spread of the coronavirus, protecting the health and safety of our citizens, and finding innovative solutions to combat this outbreak. Therefore, we will begin active trade negotiations at an appropriate time in the near future.”

Both countries “remain in regular contact on when to proceed with the negotiations,” the spokesperson continued.

Formal talks were slated to begin the week of March 23, the UK Daily Telegraph reported on Thursday. USTR did not confirm the reported date.

The Telegraph also reported that talks were on hold indefinitely, and that videoconference talks were being considered.

USTR, in its negotiating objectives document, included the same 24 chapters that were included in its objectives for a deal with the European Union, though it included more expansive language on intellectual property and softer provisions on anti-corruption issues.

In addition to those areas, U.S. lawmakers and business groups have called for more U.S. exports of beef and poultry, among other agricultural products, as well as for negotiators to address some sanitary and phytosanitary barriers. Several senators and technology groups have also urged USTR to address the UK’s potential implementation of a 2 percent digital services tax.

In its 2020 National Trade Estimate report, released last week, USTR noted that final legislation needed to implement the tax, which was expected last month, was delayed.

“Nevertheless, the United Kingdom has reaffirmed its intention to implement the tax,” the report states.

Meanwhile, the UK has been pushing for a repeal of U.S. tariffs on British products that were imposed after the World Trade Organization authorized retaliation on up to $7.5 billion worth of trade against the European Union. The authorization followed a WTO ruling that the EU was providing illegal subsidies to Airbus.

UK Secretary of International Trade Liz Truss said she raised the issue with Lighthizer during a conversation in February.

The UK, as outlined in its negotiating document, plans to push for high-standard digital trade and services provisions as well as a reduction of trade barriers in talks with the U.S. The country also restated its refusal to compromise food safety or animal welfare standards and said it would like to achieve “access that goes beyond the level set in the World Trade Organization Government Procurement Agreement.”

U.S. agricultural standards were a contentious issue during Transatlantic Trade and Investment Partnership talks. UK civil society groups argued that TTIP would reduce food safety and animal welfare standards by forcing the country to accept so-called “chlorinated chicken” and “hormone beef.” But Lighthizer last month said he did not believe such issues would torpedo the talks.

Government procurement was also a highly contentious issue in the TTIP negotiations, with both sides contending they had the more open market and demanding more access from the other.

The UK’s exit from the EU in January freed the country to negotiate a trade deal with the U.S., but the scope of any deal will depend on the UK’s post-Brexit relationship with Brussels. The UK and the EU have set a December deadline for their own talks.

EU officials, in a letter obtained by the German news outlet Der Spiegel this week, called the chances that the EU and UK might reach a trade agreement by December a “fantasy.” The letter cites issues related to the pandemic in suggesting trade talks might be put on ice. — Isabelle Icso (iicso@iwpnews.com)