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By Harriet Line Deputy Political Editor
Published: | Updated:
Britain will today sign a major put up-Brexit trade pact with Texas – the eighth largest economy on the planet.
With a GDP value £1.9 trillion, the US state is value extra than Canada, Russia and Australia.
The home of the cowboy is also the second largest American economy, making the arrangement the most significant UK-US state agreement to date.
Trade Secretary Kemi Badenoch will welcome Texas Governor Greg Abbott to London to put pen to the Statement of Mutual Cooperation.
This will break down trade barriers to additional funding and commerce between the 2 economies – making it quicker, easier and cheaper for corporations to accomplish industry.
Trade Secretary Kemi Badenoch will welcome Texas Governor Greg Abbott to London to put pen to the Statement of Mutual Cooperation
Ministers had hoped to glean a free trade agreement with the US but development stalled amid tensions over what will have to be covered and opposition from American lawmakers
Nuclear gear, aircraft and pharmaceutical products are among the UK’s top exports to Texas at present – with total trade in items already value £14.7 billion.
It is hoped trade can be boosted particularly in areas such as hydrogen and carbon capture, utilisation and storage; lifestyles sciences; and professional industry services.
The Government said the deal will also pressure cooperation in critical minerals, infrastructure, transport services, and chemicals.
Ministers had hoped to glean a free trade agreement with the US but development stalled amid tensions over what will have to be covered and opposition from American lawmakers.
With little hope of a deal being revived before the presidential election in November, the Government has instead centered on securing a sequence of state-stage deals.
The individual US states accomplish no longer have the energy to sign trade deals so the Texas pact takes the fabricate of a ‘memorandum of understanding’.
Texas Governor Greg Abbott. Nuclear gear, aircraft and pharmaceutical products are among the UK’s top exports to Texas at present – with total trade in items already value £14.7 billion
Ministers signed four months ago such an arrangement with Florida, the fourth largest state by economy, targeted at sectors together with space, financial tech, AI and legal services.
The Government since 2022 has also performed ‘memorandums’ with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and Washington. The Texas agreement means the UK has deals with eight states that are value a mixed GDP of £5.3 trillion – equivalent to a quarter of the US economy, and larger than Japan.
Mrs Badenoch hailed the deal as displaying the ‘state-stage strategy’ is ‘delivering for British companies’.
Mr Abbott said: ‘As our ninth largest trade partner, the UK plays a critical role in the Texas financial juggernaut.
‘Strengthening the bond is crucial for our shared economies to prosper. By signing this Statement of Mutual Cooperation, we can additional promote financial increase on both facet of the Atlantic.
‘Texas is the financial engine of America, the place entrepreneurs from around the globe can cast a vision and know they can achieve it.
‘Working with our British partners, we can chart a greater path towards success and alternative and create an even extra great financial partnership.’
In December, it was reported President Joe Biden had quietly killed off hopes of a UK-US deal before the presidential election in November.
But ministers are said to be hopeful a put up-Brexit free trade agreement can be revived if Donald Trump re-enters the White Condo.
- Rishi Sunak and India’s prime minister Narendra Modi yesterday discussed development on a free trade arrangement. Downing Boulevard said they ‘agreed on the importance of securing a historic and comprehensive deal that advantages each countries’.
