UK-US Bilateral Relationship

Nigel Farage Excerpts

Tuesday 4th February 2025 Westminster Hall

[Nigel Farage (Clacton) (Reform)]

When it comes to debating the potential of the special relationship with this incoming Administration, I think I am in a fortunate position. It is not just that for 10 years I have stood up and defended President Trump—I was very much on my own in those days—but that I know half his Cabinet. We should consider ourselves incredibly lucky, because it is not just the President who is an Anglophile, as the hon. Member for Dumfries and Galloway (John Cooper) said. I promise Members that half the Cabinet are; indeed, senior members of the Administration have children at school in London as we speak. We have a unique opportunity over the next four years and I really hope we exploit it.

During his last term as President, Trump said to me personally that he really wanted to do a free trade deal with the United Kingdom. Now, I know he is very keen on tariffs—tariffs are being put on all over the world, and no doubt the EU will feel some of that—but with us he was very happy to have a free trade deal. He felt that it would not be unfair, because we are roughly operating on similar levels and with similar costs. Those opportunities are fantastic.

On defence, we should face the fact that without America we are defenceless, so it matters, but we should think about the bit that we give back. Diego Garcia is probably the single most important thing that we give America right now. Without it, America does not have access to the middle east, India and much else. It is the single most important island in the world for America—after Hawaii, obviously—so it really matters.

We have had news in the last hour that the Government are going to push ahead with the surrender of the sovereignty of the Chagos islands, at a reported cost of up to £19 billion—I am sure that cannot be true. I warn the Government that they may not be getting huge pushback from America at this moment in time, because they have a list as long as your arm of other priorities, but once they realise that we do not even have that to give them any more, our value to them in that two-way relationship will be considerably reduced. I genuinely fear that if this continues and the American Administration wakes up to it—I could quote three members of the Cabinet I have spoken to personally about it—our chances of not just avoiding tariffs but moving on to a sectoral free trade deal will all but evaporate. The special relationship will be dangerously fractured if the Government carry on with this, so I urge them to please, please give the American Administration a few weeks to think about this while they settle into office.

I will finish on one quick point about the economics. In 2008, the eurozone economy was exactly the same size as the American economy, but 16 years on the American economy is double the size of the eurozone. We do not have to say, “America not Europe,” or “Europe not America”; the really important thing is to understand where the growth is and where the investment will come from. Whatever new terms we seek with Brussels—if it is just a good relationship, that is fine—we must not tie ourselves to an EU rulebook that prohibits free trade with the USA. Economically, it is the future, and the EU is the past.