Following President Trump's announcement of a new trade agreement with the United Kingdom, the Information Technology and Innovation Foundation (ITIF) has raised concerns regarding the deal's focus. The ITIF, recognized as a leading think tank in science and technology policy, released a statement from Rodrigo Balbontin, its associate director specializing in trade, intellectual property, and digital technology governance.
Balbontin expressed that the trade deal does not prioritize reducing the UK's trade barriers. He pointed out the UK Digital Services Tax (DST), which imposes a two percent tax specifically on U.S. technology companies based on their global revenues. "Reducing trade barriers, particularly with allies, should have been the top priority," Balbontin stated.
The agreement maintains Liberation Day's 10 percent reciprocal tariffs and lacks emphasis on advanced technology industries apart from chemicals. President Trump acknowledged there is more work to be done to enhance economic cooperation between the two nations. His comment that "there is more we can do in reducing tariffs and trade barriers so as to open up our markets to each other even more" underscores this sentiment.
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