United KingdomâUnited States Free Trade Agreement | |
---|---|
Type | Free trade agreement |
Context | Investment and Trade agreement between the United Kingdom and the United States |
Negotiators |
|
Parties | |
Language | English |
The United KingdomâUnited States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States. [1]
The UK became legally able to independently negotiate trade agreements when it left the European Union from 1 January 2020 due to a transition period which lasted until the UK formally exited the EU. [2] Negotiations opened in May 2020, but have stagnated since 2021 under the Biden Administration which has focused on fixing its domestic economy. [3] [4]
Round | Dates | Location | Ref. |
---|---|---|---|
1 | 5â15 May 2020 | Virtual meeting | [5] |
2 | 15â26 June 2020 | Virtual meeting | [6] |
3 | 27 Julyâ7 August 2020 | Virtual meeting | [7] |
4 | 8â18 September 2020 | Virtual meeting | [8] |
5 | 19â30 October 2020 | Virtual meeting | [9] |
On 28 February 2019, the United States released its negotiating objectives. [10] The United Kingdom released its objectives on 1 March. [11] The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020. [12] [13]
In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous European UnionâUnited States agreements. [14]
The Biden Administration made it clear that the US would not further talks about a potential FTA, due to British threats against ratifying the Northern Ireland Protocol which would violate international law, with dangerous ramifications that could threaten the Good Friday Agreement. [15] [16] [17] [18] With the administration of President Joe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states. [19] Regulation of international trade is a federal responsibility under the Commerce Clause of the U.S. Constitution, preventing state agreements from changing customs rules. [20] Therefore, the UK has aimed at signing Memorandum of Understanding (MoU) agreements with numerous states. [21] MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies. [22] Former British trade minister Penny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA. [23]
No. | Signed | State | Ref. |
---|---|---|---|
1 | 27 May 2022 | Indiana | [21] |
2 | 20 July 2022 | North Carolina | [24] |
3 | 7 December 2022 | South Carolina | [25] |
4 | 18 April 2023 | Oklahoma | [26] |
5 | 22 June 2023 | Utah | [27] |
6 | 25 September 2023 | Washington | [28] |
7 | 14 November 2023 | Florida | [29] [30] |
8 | 13 March 2024 | Texas | [31] [32] |
Trade negotiations ongoing: [33]
Following President Joe Biden and UK Prime Minister Rishi Sunak's meeting held in Northern Ireland on 12 April 2023, talks of a UKâUS free trade agreement were postponed until at the very least 2025. [34]
In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US. [35] The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers. [36] [37] The declaration commits both nations to increase research collaboration in future technologies, such as AI, future 5G and 6G telecoms, quantum, semiconductors and engineering biology. [38] Further, these talks led to a commitment in principle to a new UKâUS Data Bridge that facilitates the transfer of data by UK businesses to certified U.S. organizations. [39]
During the signing of the accession of the United Kingdom to CPTPP on the 16th of July 2023, Kemi Badenoch blamed the lack of progress on the UK-US FTA on the change of administration from Donald Trump to Joe Biden after the 2020 election. [40] Badenoch stated that âThe US is not carrying out any free trade agreements with any countryâ. [41]
On 3 October 2023, Biden and Sunak were reported to be preparing a "foundational" trade agreement between the two countries which would be modeled off of the Indo-Pacific Economic Framework. However this agreement will not constitute as a free trade agreement under World Trade Organization rules as the proposals do not contain market access commitments. [42] The proposed partnership aims to cover subjects such as digital trade, labour protections and agriculture. [43] On the same day, Badenoch reiterated that there was "zero" chance of a free trade agreement under President Biden's administration, citing his attitude to such deals. [44] On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned. [45]
Areas covered in the FTA and contention points: [46]
United KingdomâUnited States Free Trade Agreement | |
---|---|
Type | Free trade agreement |
Context | Investment and Trade agreement between the United Kingdom and the United States |
Negotiators |
|
Parties | |
Language | English |
The United KingdomâUnited States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States. [1]
The UK became legally able to independently negotiate trade agreements when it left the European Union from 1 January 2020 due to a transition period which lasted until the UK formally exited the EU. [2] Negotiations opened in May 2020, but have stagnated since 2021 under the Biden Administration which has focused on fixing its domestic economy. [3] [4]
Round | Dates | Location | Ref. |
---|---|---|---|
1 | 5â15 May 2020 | Virtual meeting | [5] |
2 | 15â26 June 2020 | Virtual meeting | [6] |
3 | 27 Julyâ7 August 2020 | Virtual meeting | [7] |
4 | 8â18 September 2020 | Virtual meeting | [8] |
5 | 19â30 October 2020 | Virtual meeting | [9] |
On 28 February 2019, the United States released its negotiating objectives. [10] The United Kingdom released its objectives on 1 March. [11] The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020. [12] [13]
In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous European UnionâUnited States agreements. [14]
The Biden Administration made it clear that the US would not further talks about a potential FTA, due to British threats against ratifying the Northern Ireland Protocol which would violate international law, with dangerous ramifications that could threaten the Good Friday Agreement. [15] [16] [17] [18] With the administration of President Joe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states. [19] Regulation of international trade is a federal responsibility under the Commerce Clause of the U.S. Constitution, preventing state agreements from changing customs rules. [20] Therefore, the UK has aimed at signing Memorandum of Understanding (MoU) agreements with numerous states. [21] MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies. [22] Former British trade minister Penny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA. [23]
No. | Signed | State | Ref. |
---|---|---|---|
1 | 27 May 2022 | Indiana | [21] |
2 | 20 July 2022 | North Carolina | [24] |
3 | 7 December 2022 | South Carolina | [25] |
4 | 18 April 2023 | Oklahoma | [26] |
5 | 22 June 2023 | Utah | [27] |
6 | 25 September 2023 | Washington | [28] |
7 | 14 November 2023 | Florida | [29] [30] |
8 | 13 March 2024 | Texas | [31] [32] |
Trade negotiations ongoing: [33]
Following President Joe Biden and UK Prime Minister Rishi Sunak's meeting held in Northern Ireland on 12 April 2023, talks of a UKâUS free trade agreement were postponed until at the very least 2025. [34]
In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US. [35] The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers. [36] [37] The declaration commits both nations to increase research collaboration in future technologies, such as AI, future 5G and 6G telecoms, quantum, semiconductors and engineering biology. [38] Further, these talks led to a commitment in principle to a new UKâUS Data Bridge that facilitates the transfer of data by UK businesses to certified U.S. organizations. [39]
During the signing of the accession of the United Kingdom to CPTPP on the 16th of July 2023, Kemi Badenoch blamed the lack of progress on the UK-US FTA on the change of administration from Donald Trump to Joe Biden after the 2020 election. [40] Badenoch stated that âThe US is not carrying out any free trade agreements with any countryâ. [41]
On 3 October 2023, Biden and Sunak were reported to be preparing a "foundational" trade agreement between the two countries which would be modeled off of the Indo-Pacific Economic Framework. However this agreement will not constitute as a free trade agreement under World Trade Organization rules as the proposals do not contain market access commitments. [42] The proposed partnership aims to cover subjects such as digital trade, labour protections and agriculture. [43] On the same day, Badenoch reiterated that there was "zero" chance of a free trade agreement under President Biden's administration, citing his attitude to such deals. [44] On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned. [45]
Areas covered in the FTA and contention points: [46]