The UK is set to sign an agreement on closer trade co-operation with Texas as the Government continues to pursue state-level deals in the absence of a wider free trade agreement with the US.
Trade Secretary Kemi Badenoch and Texas Governor Greg Abbott are expected to formally sign the agreement in Westminster on Wednesday.
The agreement is not a trade deal, because individual US states do not have the power to sign these, but is similar to a memorandum of understanding designed to improve co-operation between businesses in Britain and Texas and tackle regulatory barriers to trade.
Ms Badenoch said: “I’m delighted to welcome Governor Abbott to the UK for this landmark signing.
“Today’s signature with Texas marks the UK’s eighth US state-level pact, meaning UK firms now have access to states with a combined GDP of £5.3 trillion – equivalent to a quarter of the whole US economy. This shows our US state-level strategy is working and really delivering for British businesses.”
The agreement is targeted particularly at the energy sector, as well as life sciences and business services.
Even before the signing of the agreement, British businesses had already enjoyed success in Texas, with the Government’s BioBridge collaboration with the Texas Medical Centre helping 30 UK life sciences companies grow their business in the state.
Mr Abbott said: “As our ninth largest trade partner, the United Kingdom plays a critical role in the Texas economic juggernaut.
“Strengthening the bond between Texas and the United Kingdom is crucial for our shared economies to prosper.
“By signing this Statement of Mutual Co-operation today, we will further promote economic growth on both sides of the Atlantic.
“Texas is the economic engine of America, where entrepreneurs from around the globe can cast a vision and know they can achieve it. Working with our British partners, we will chart a greater path towards success and opportunity and create an even more robust economic partnership.”
Achieving a free trade agreement with America had been part of the Conservatives’ 2019 manifesto, but progress towards a deal has stalled, with Ms Badenoch blaming a lack of interest on the part of the current US administration.
Instead, the UK has pursued a series of state-level deals, including Indiana in May 2022 and most recently Florida in November last year.
Although these agreements do not lower tariffs as a free trade deal would, they can provide some help for businesses through recognising UK qualifications or addressing state-level regulatory issues.
