The former Secretary to the US Treasury Lawrence H Summers has warned that Britain will be desperate if it goes ahead with a No Deal Brexit and will lose a lot of its negotiating power with other countries.
Speaking on BBC Radio 4, Mr Summers said Boris Johnson’s insistence that he is prepared to leave the EU in October without a deal in place would remove a lot of Britain’s leverage when bargaining with other countries over trade.
“Britain has no leverage, Britain is desperate … it needs an agreement very soon. When you have a desperate partner, that’s when you strike the hardest bargain.”
You can watch the video below.
Former US treasury sec @LHSummers says the UK is “desperate”, has no negotiating leverage and needs a deal soon. Insisting on Brexit whatever happens is “the worst way to give you leverage with any new potential partners” #r4today pic.twitter.com/Au9mtQzebp
— BBC Radio 4 Today (@BBCr4today) August 6, 2019
In a Guardian interview, Mr Summers said: “We have economic conflict with China and, even on top of that, the deterioration of the pound is going to further complicate the negotiating picture.
“We will see it as giving Britain an artificial comparative advantage and make us think about the need to retaliate against Britain, not to welcome Britain with new trade agreements.
“Britain has much less to give than Europe as a whole did, therefore less reason for the United States to make concessions. You make more concessions dealing with a wealthy man than you do dealing with a poor man.”