US Secretary of State Marco Rubio says broad free trade agreements are unlikely to return soon, as Washington shifts towards reciprocal bilateral trade arrangements….reports Asian Lite News Desk
US Secretary of State Marco Rubio has said the era of free trade agreements is unlikely to return “for the foreseeable future”, signalling a shift towards bilateral and reciprocal trade arrangements as Washington seeks to deepen economic ties.
Rubio made the remarks in Reykjavik while responding to a question about whether the United States was willing to explore a free trade agreement with Iceland.
“As far as free trade agreements are concerned, look, I think the era of free trade agreements for the foreseeable future is probably not going to be there,” Rubio said during a joint media availability with Icelandic Foreign Minister Thorgerdur Katrin Gunnarsdottir.
He stressed that his comments were not aimed specifically at Iceland, but reflected the broader US approach to trade agreements.
“I mean, not with Iceland, but just in general writ large,” he said.
Rubio said Washington instead saw opportunities in bilateral trade arrangements based on reciprocity between individual countries.
“Where I do think we have real opportunities is a bilateral trade agreement, bilateral trade, a reciprocal trade understanding between our countries,” he said.
He added that discussions between the United States and Iceland on pursuing such an arrangement were already being organised before his visit.
“And it’s my understanding that meetings to try to pursue and further that are being organized as already pre-existing to my visit, and hopefully those will be very positive,” Rubio said.
The comments provide an indication of the Trump administration’s broader approach to international trade, with greater emphasis on reciprocal arrangements and bilateral negotiations rather than traditional multilateral or broad free trade agreements.
Rubio also highlighted opportunities to strengthen commercial and investment ties between the United States and Iceland, particularly in specialised industries.
He pointed to Icelandic companies operating in sectors such as pharmaceuticals and biotechnology, saying there were opportunities for greater investment and cooperation between businesses in the two countries.
“There are companies here to do very unique things that we would like to see in the United States and there are companies in the United States that I think could find some real positive economic opportunities to invest and be a part of here,” Rubio said.
He said the US government wanted to facilitate visits by American businesses to Iceland to identify potential investment opportunities. Icelandic companies, meanwhile, could be encouraged to explore investment opportunities and markets in the United States.
Rubio said the governments and embassies of both countries could play a role in connecting companies and investors and helping create new commercial partnerships.
“We want to use the government, our embassy, our presence here, your embassy in the United States, to connect and create that synergy,” he said.
“We will both benefit from it. You’ll become more prosperous, we’ll become more prosperous, and I think will only bind us together more closely.”
Rubio’s remarks come as Washington places increasing emphasis on reciprocal trade and country-to-country negotiations, marking a departure from the broader tariff-reduction framework traditionally associated with free trade agreements.
