In the Papers

15th March 2000

THE GUARDIAN

BRITAIN TO BE SIZED UP FOR NAFTA ENTRY

by Charlotte Denny
Wednesday March 15, 2000

A team of Washington officials is due to arrive in the UK today to size up the British economy for possible membership of the North American Free Trade Area.
Joining the multi-billion-dollar free trade zone which encompasses Canada, the US and Mexico would almost certainly require Britain to leave the European Union and the government has ruled it out as an option. Last month, Keith Vaz, the minister for Europe, described the proposals as "far-fetched".

But the inquiry is proceeding at the request of the American senate, where influential members believe there may be advantages for the US if Britain, the world's fourth-largest economy, were to become part of Nafta.

The team, from the International Trade Commission, an independent federal agency, will meet officials from the cabinet office and the foreign office as well as the TUC and CBI.

Michael Fabricant, the Conservative MP who has tabled two private members bills on the costs and benefits of Nafta versus the EU, said it was a "tempting" alternative.

"I think our economic interests lie more with the United States than with the EU," he added.

Mr Fabricant said the government ought to set up a royal commission to investigate the costs and benefits of Nafta in parallel with the US investigation.

Members of the pro-European Britain in Europe lobby group said joining Nafta would be against Britain's interests. "Leaving the EU is the real agenda of those who propose joining Nafta," said Kitty Ussher, chief economist at Britain in Europe. "But to do that would be cutting our economic nose off to spite our political face. We do 53% of our trade with the EU and only 17% with Nafta."