Cameron and Obama Need to Do Business, Not Just Tea and Sympathy

This week President Obama will throw a tea party for British prime minister David Cameron in Washington, with only a trace of irony.

This week President Obama will throw a tea party for British prime minister David Cameron in Washington, with only a trace of irony. It makes sense for the English speaking peoples to pull together. After all, history has shown dangers to American freedom have always first threatened the little island nation of Britain; tyrannical monarchy, 20th century totalitarianism and charging for ketchup come to mind.

Yet the 'special relationship' between the United States and the United Kingdom is only as special as our leaders choose to make it. Throughout the modern era it has taken a mixture of personal skill, world events and clearly identified interests to make our bonds relevant to the times we live in. Margaret Thatcher and Ronald Reagan knew, just as anyone who loves sports, it is more fun to strive toward a shared goal together rather than just hang out.

For Barack Obama and David Cameron are by no means political soul mates. Britain and America really have stood 'shoulder-to-shoulder beside each other in defense of our liberty and shared values' in Iraq and Afghanistan, as the forward press release proclaims. But as Obama winds these wars down, his administration has in some ways been steadfastly cool towards their most steadfast ally. Secretary of State Clinton has suggested dialogue with Argentina over the fate of the British population of the Falkland Islands. In the Middle East, Britain had to practically plead to be included in the recent American and French navy flotilla intended to warn Iran from the Straits of Hormuz.

Here is a lesson for those who support a close and continued Atlantic relationship based on more than Simon Cowell's TV exports. It is that in the absence of shared interests, even the most profound values are in the eye of the beholder. Rather like singing.

Yet it is also true that 'Barack and Dave' share a common enemy even in peace. Our middle classes are still suffering from the harshest economic downturn since the NATO military alliance began. The US deficit is exploding while median incomes are not expected to return to pre-recessionary levels for at least ten years. Across the pond, the green shoots of recovery have yet to materialize, while the high prices tourists experience have pushed home ownership beyond the reach of aspiring Brits.

In fact, London and Washington are once again perfectly positioned to advance each other's interests, through the enduring value of free trade. A RAND study by Gregory Treverton shows elimination of transatlantic tariffs would boost US exports to Europe by ten percent, with hard pressed agriculture and manufacturing the biggest winners. British consumers would benefit from cheaper products as blessed relief from 'rip-off Britain'. As in many ways unique allies, our countries can at least start toward the unfettered movement of goods and capital between the rival NAFTA and European trading blocs that taken together represent half of all world output. This is could add at least four percent annual growth on both sides of the ocean, at a time when living standards are floundering.

As importantly, a North Atlantic Free Trade Area would benefit both leaders as much as their voting supporters. Recent American trade pacts have been with South American and Asian countries with dubious commitments to human rights and democracy. That drives down prices, but also wages and environmental standards. Fairer trade with other democracies, on the other hand, would be supported by Republican and Democrat alike. For a British leader like Cameron, more Atlantic trade is 'big idea' outside the mold of petty politics that offers a new direction for his party, away from the European Union centralization that has failed even its most enthusiastic member states. Opening Europe for business also gives the Prime Minister a platform worthy of a genuine partnership, rather than being seen to ride on American coat-tails.

Lionhearted war leaders Churchill and Roosevelt girded their nations to defeat Nazi Germany. Thatcher and Reagan stared down the Soviet Union. Blair and Bush overlooked political differences to forge the war on terror. Now it is time for a renewed alliance for the prosperity our joint security depends on. Without charging for ketchup.

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