LONDON: In the absence of a larger free trade agreement with the US government, Britain inked its eighth trade pact with a US state on Wednesday: the one with Texas.
In London, Texas Governor Greg Abbott and UK Trade Secretary Kemi Badenoch signed the agreement. Prime Minister Rishi Sunak informed Abbott during their meeting that it was a “exciting moment.”
The “statement of mutual cooperation” binds Texas and Britain to enhance corporate collaboration and address trade-related regulatory hurdles, but it is not a comprehensive trade agreement because individual U.S. states lack the authority to join such agreements.
“Remember that this is much more than just a document,” stated Abbott. “A road to greater prosperity is what we signed our names to today.”
Proponents of Brexit contended that the opportunity for the United Kingdom to negotiate new trade agreements globally was a primary advantage of exiting the European Union, along with its sizable free market of about 500 million people, both during and after the country’s 2016 referendum on membership.
U.K.-U.S. trade talks were launched with fanfare soon after Britain left the EU in 2020, but negotiations faltered amid rising concern in the U.S. administration about the impact of Brexit, especially on Northern Ireland.
Instead, Britain has resorted to signing agreements with states including Florida, Indiana and North Carolina.
Although these agreements do not lower tariffs, as a free trade deal would, they can provide some help for businesses through recognizing U.K. qualifications or addressing state-level regulatory issues.
