Yee-haw! Britain set to sign trade pact with Texas
BRITAIN will today sign a major post- Brexit trade pact with Texas – the eighth largest economy in the world.
With a GDP worth £1.9 trillion, the US state is worth more 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.
Business 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 further investment and commerce between the two economies – making it quicker, easier and cheaper for firms to do business.
Nuclear equipment, aircraft and pharmaceutical products are among the UK’s top exports to Texas at present – with total trade in goods already worth £14.7 billion.
It is hoped trade will be boosted particularly in areas such as hydrogen and carbon capture, utilisation and storage; life sciences; and professional business services.
The Government said the deal will also drive cooperation in critical minerals, infrastructure, transport services, and chemicals.
Ministers had hoped to secure a free trade agreement with the US but progress stalled amid tensions over what should 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 focused on securing a series of state-level deals.
The individual US states do not have the power to sign trade deals so the Texas pact takes the form of a ‘memorandum of understanding’.
Ministers signed four months ago such an arrangement with Florida, the fourth largest state by economy, targeted at sectors including space, financial tech, AI and legal services.
The Government since 2022 has also completed ‘memorandums’ with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and Washington.
The Texas agreement means the UK has deals with eight states that are worth a combined GDP of £5.3 trillion – equivalent to a quarter of the US economy, and bigger than Japan.
Mrs Badenoch hailed the deal as showing the ‘statelevel strategy’ is ‘delivering for British businesses’.
Mr Abbott said: ‘As our ninth largest trade partner, the UK plays a critical role in the Texas economic juggernaut.
‘Strengthening the bond is crucial for our shared economies to prosper. By signing this Statement of Mutual Cooperation, 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.’
In December, it was reported President Joe Biden had quietly killed off hopes of a UKUS deal before the presidential election in November.
But ministers are said to be hopeful a post-Brexit free trade agreement could be revived if Donald Trump reenters the White House.
■ Rishi Sunak and India’s prime minister Narendra Modi yesterday discussed progress on a free trade arrangement. Downing Street said they ‘ agreed on the importance of securing a historic and comprehensive deal that benefits both countries’.
‘Bond crucial for our economies’