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United Kingdom–United States Free Trade Agreement
British-American tariff lowering law From Wikipedia, the free encyclopedia
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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]
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History
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First 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]
During the Premiership of Rishi Sunak, the UK had been negotiating MoUs with California, Colorado, Illinois, and New York - though the negotiations were never concluded.[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]
Second Trump Administration
On 27 February 2025, a bipartisan group of US lawmakers re-introduced a bill that authorised comprehensive trade talks with the UK, named 'The United Act'. The broadly-constructed measure would allow for initiating talks on “tariff and nontariff barriers affecting any industry, product, or service sector.”[46]
On 8 May 2025, the UK and US announced an agreement in principle on an Economic Prosperity Deal, paving the way for renewed negotiations.[47][48]
According to a POLITICO-Public First poll conducted in April 2025, the vast majority of American and British adults support their governments reaching an agreement, but less than a third of respondents in the UK and 44% of Americans said they believe President Donald Trump will stick to it.[49]
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Chapters
Areas covered in the FTA and contention points:[50]
- 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
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See also
References
External links
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