United Kingdom–United States Free Trade Agreement

UK-US FTA
United Kingdom–United States Free Trade Agreement
  United Kingdom (UK)
  United States (US)
TypeFree trade agreement
ContextInvestment and Trade agreement between the United Kingdom and the United States
Negotiators
Parties
LanguageEnglish

The United Kingdom–United 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]

History

UKUSFTA Round of Negotiations
Round Dates Location Ref.
1 5–15 May 2020 Virtual meeting [5]
2 15–26 June 2020 Virtual meeting [6]
3 27 July–7 August 2020 Virtual meeting [7]
4 8–18 September 2020 Virtual meeting [8]
5 19–30 October 2020 Virtual meeting [9]

Trump Administration

On 28 February 2020, 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 Union–United States agreements.[14]

Biden Administration

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]

UK–US State Memorandum of Understanding Agreements
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 UK–US 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 UK–US 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 16 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 “The US is not carrying out any free trade agreements with any country”.[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]

Chapters

Areas covered in the FTA and contention points:[46]

  • Trade in Goods
  • Sanitary and Phytosanitary Measures (SPS):
  • Customs and Trade Facilitation
  • Rules of origin
  • Technical Barriers to Trade (TBT)
  • Good Regulatory Practices
  • Transparency, Publication, and Administrative Measures
  • Trade in Services, Including Telecommunications and Financial Services
  • Digital Trade in Goods and Services and Cross-Border Data Flows
  • Investment
  • Intellectual Property
  • Procedural Fairness for Pharmaceuticals and Medical Devices
  • State-Owned and Controlled Enterprises (SOEs)
  • State Subsidies
  • Competition Policy
  • Labour
  • Environment
  • Anti-corruption
  • Trade Remedies
  • Settlement
  • General Provisions
  • Currency

See also

References

  1. ^ Truss, Eizabeth (5 May 2020). "UK and US start trade negotiations". GOV.UK. Archived from the original on 5 May 2020. Retrieved 25 April 2024.
  2. ^ Eiser, David; McEwen, Nicola; Roy, Graeme (7 April 2021). "The Trade Policies of Brexit Britain: the Influence of and Impacts on the Devolved Nations" (PDF). Brill Publishers. Archived from the original (PDF) on 14 April 2023. Retrieved 20 February 2024.
  3. ^ Pickard, Jim (3 May 2020). "UK-US trade talks to begin on Tuesday". Financial Times. Archived from the original on 4 May 2020. Retrieved 25 April 2024.
  4. ^ Giordano, Chiara (21 January 2021). "We'll fix US economy before signing trade deals, says Biden's Treasury pick Janet Yellen". The Independent. Archived from the original on 26 November 2023. Retrieved 26 November 2023.
  5. ^ Truss, Elizabeth (18 May 2020). "Negotiations on the UK's future trading relationship with the US: Update". GOV.UK. Archived from the original on 18 May 2020. Retrieved 21 April 2024.
  6. ^ Truss, Elizabeth (30 June 2020). "Negotiations on the UK's Future Trading Relationship with the US: Update". UK Parliament. Archived from the original on 25 October 2020. Retrieved 21 April 2024.
  7. ^ Truss, Elizabeth (20 August 2022). "Negotiations on the UK's Future Trading Relationship with the US: Update". GOV.UK. Archived from the original on 19 August 2020. Retrieved 21 April 2024.
  8. ^ Truss, Elizabeth (22 September 2020). "Negotiations on the UK's Future Trading Relationship with the US: Update". GOV.UK. Archived from the original on 22 September 2020. Retrieved 21 April 2024.
  9. ^ Truss, Elizabeth (2 November 2020). "Negotiations on the UK's Future Trading Relationship with the US: Update". GOV.UK. Archived from the original on 2 November 2020. Retrieved 21 April 2024.
  10. ^ "UK publishes negotiating objectives for post-Brexit US trade deal". ITV News. 2 March 2020. Archived from the original on 3 March 2020. Retrieved 25 April 2024.
  11. ^ "U.S. Trade Representative Releases Summary of U.S.-UK Trade Agreement Negotiations". Thompson Hine. 1 March 2019. Archived from the original on 25 June 2022. Retrieved 25 April 2024.
  12. ^ Lawder, David; Shalal, Andrea (5 May 2020). "U.S., UK launch trade talks, pledge quick deal as virus ravages global economy". Reuters. Archived from the original on 5 May 2020. Retrieved 25 April 2024.
  13. ^ Warrington, James (22 September 2020). "Liz Truss hails 'productive' fourth round of UK-US trade talks". City A.M. Archived from the original on 5 May 2020. Retrieved 25 April 2024.
  14. ^ "U.S.-UK Trade Agreement Negotiations". Office of the United States Trade Representative. Archived from the original on 27 March 2019. Retrieved 25 April 2024.
  15. ^ Parker, George; Noonan, Laura; Williams, Aime (17 March 2021). "US fires warning shot at Johnson on Northern Ireland". Financial Times. Archived from the original on 17 March 2021. Retrieved 26 April 2024.
  16. ^ Darmanin, Jules; Pogatchnik, Shawn; Casalicchio, Emilio (10 June 2021). "US reprimands UK over Northern Ireland protocol row". Politico. Archived from the original on 10 June 2021. Retrieved 26 April 2024.
  17. ^ Landow, Charles; McBride, James (16 February 2024). "Moving Past the Troubles: The Future of Northern Ireland Peace". Council on Foreign Relations. Archived from the original on 24 April 2024. Retrieved 25 April 2024.
  18. ^ Bromund, Ted R. "Free Trade Between U.S., U.K. Is Step Closer". The Heritage Foundation. Archived from the original on 28 June 2022. Retrieved 26 April 2024.
  19. ^ Pickard, Jim; Williams, Aime (30 May 2023). "UK has no plans to strike US trade deal during Rishi Sunak visit to Washington". Financial Times. Archived from the original on 30 May 2023. Retrieved 26 April 2024.
  20. ^ "ArtI.S8.C3.8.1 Overview of Foreign Commerce Clause". Constitution Annotated. Archived from the original on 2 May 2023. Retrieved 26 April 2024.
  21. ^ a b Nevett, Joshua (10 June 2021). "Brexit: UK signs first US state-level trade agreement with Indiana". BBC News. Archived from the original on 27 May 2022. Retrieved 26 April 2024.
  22. ^ Shalal, Andrea (9 December 2022). "Britain Eyes Trade Agreements With California, Utah". US News. Archived from the original on 10 December 2022. Retrieved 26 April 2024.
  23. ^ Harper, Jo (7 July 2023). "UK-US: What's happened to their free trade deal?". Deutsche Welle. Archived from the original on 7 July 2023. Retrieved 26 April 2024.
  24. ^ Mordaunt, Penny (20 July 2022). "UK signs second state-level agreement with North Carolina". GOV.UK. Archived from the original on 20 July 2022. Retrieved 26 April 2024.
  25. ^ Milligan, Ellen (7 December 2022). "UK Signs Third US State Trade Pact in Absence of a Broader Deal". Bloomberg. Retrieved 26 April 2024.
  26. ^ Lanktree, Graham (18 April 2023). "UK strikes state-level trade pact with Oklahoma". Politico. Archived from the original on 18 April 2023. Retrieved 26 April 2024.
  27. ^ Huddleston, Nigel (20 July 2022). "UK puts pen to paper on fifth trade pact with a US state". GOV.UK. Archived from the original on 22 June 2023. Retrieved 26 April 2024.
  28. ^ Ghani, Nasrat (25 September 2023). "UK signs sixth US state deal with Washington State". GOV.UK. Archived from the original on 25 September 2023.
  29. ^ Badenoch, Kemi (15 November 2023). "UK and Florida sign pact to boost trade". GOV.UK. Archived from the original on 14 November 2023. Retrieved 15 November 2023.
  30. ^ Shalal, Andrea; Smout, Alistair (14 November 2023). "UK minister sees 'huge opportunities' from trade pact with Florida". Reuters. Archived from the original on 14 November 2023. Retrieved 15 November 2023.
  31. ^ "UK signs trade pact with second biggest US state – Texas". GOV.UK. 13 March 2024. Archived from the original on 13 March 2024. Retrieved 13 March 2024.
  32. ^ White, Lucy (13 March 2024). "UK Signs Trade Pact With Texas in Effort to Boost Green Industry". Bloomberg. Archived from the original on 13 March 2024. Retrieved 13 March 2024.
  33. ^ "UK minister to sign trade pact with Florida Governor DeSantis". The Straits Times. 8 November 2023. Archived from the original on 15 November 2023. Retrieved 20 November 2023.
  34. ^ Riley-Smith, Ben (12 April 2023). "Exclusive: US trade deal talks won't start until 2025 at the earliest". The Telegraph. ISSN 0307-1235. Archived from the original on 12 April 2023. Retrieved 28 June 2023.
  35. ^ Hunnicutt, Trevor; Smout, Alistair; Ravikumar, Sachin (8 June 2023). "US and UK back new 'Atlantic Declaration' for economic cooperation". Reuters. Archived from the original on 8 June 2023. Retrieved 26 April 2024.
  36. ^ Rigby, Beth (8 June 2023). "Sunak and Biden agree 'Atlantic Declaration' to boost economic security". Sky News. Archived from the original on 8 June 2023. Retrieved 26 April 2024.
  37. ^ Mason, Chris (9 June 2023). "What Sunak's Atlantic Declaration is – and isn't". BBC News. Archived from the original on 9 June 2023. Retrieved 26 April 2024.
  38. ^ Sunak, Rishi (8 June 2023). "UK and US launch first-of-its kind economic partnership". GOV.UK. Archived from the original on 8 June 2023. Retrieved 26 April 2024.
  39. ^ Parker, George; Schwartz, Felicia; Politi, James; Pickard, Jim (8 June 2023). "Joe Biden and Rishi Sunak unveil 'Atlantic declaration' to strengthen economic ties". Financial Times. Archived from the original on 8 June 2023. Retrieved 26 April 2024.
  40. ^ Crerar, Pippa (16 July 2023). "Kemi Badenoch signs treaty for UK to join Indo-Pacific trade bloc". The Guardian. Archived from the original on 16 July 2023. Retrieved 26 April 2024.
  41. ^ Reynolds, Isabel; Zhou, Wei (16 July 2023). "UK Joins Pacific Trade Deal, Sees 'Very Low' Chance of US Pact". Bloomberg. Archived from the original on 16 July 2023. Retrieved 26 April 2024.
  42. ^ Lanktree, Graham; Bade, Gavin (3 October 2023). "Revealed: Joe Biden and Rishi Sunak seek UK/US trade pact before 2024 elections". Politico. Archived from the original on 3 October 2023. Retrieved 3 October 2023.
  43. ^ Stacey, Kiran (3 October 2023). "US wants UK to open up its agriculture markets as part of new trade deal". The Guardian. Archived from the original on 4 October 2023. Retrieved 3 October 2023.
  44. ^ Smout, Alistair (3 October 2023). "UK minister says "zero" chance of free trade deal with Biden". Reuters. Archived from the original on 3 October 2023. Retrieved 3 October 2023.
  45. ^ Stacey, Kiran (18 December 2023). "Joe Biden signals he has no interest in signing US-UK trade agreement". The Guardian. Archived from the original on 18 December 2023. Retrieved 18 December 2023.
  46. ^ Powney, Mark (20 May 2020). "UK-US Free Trade Agreement Negotiations Progress". Business News Wales. Archived from the original on 11 June 2020. Retrieved 26 April 2024.

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