United Kingdom–United States Free Trade Agreement
{{Short description|British-American tariff lowering law}}
{{Use British English|date=June 2024}}
{{Use dmy dates|date=June 2024}}
{{Infobox treaty
| name = UK-US FTA
| long_name = United Kingdom–United States Free Trade Agreement
| image = UK-US FTA.svg
| image_size = 390px
| alt =
| caption = {{Legend|#FF7F00|United Kingdom (UK)}}{{Legend|#228B22|United States (US)}}
| type = Free trade agreement
| context = Investment and Trade agreement between the United Kingdom and the United States
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| mediators =
| negotiators =
- {{flagicon|United Kingdom}} Liz Truss
until 15 September 2021 - {{flagicon|United Kingdom}} Anne-Marie Trevelyan
from 15 September 2021 until 6 September 2022 - {{flagicon|United Kingdom}} Kemi Badenoch
from 6 September 2022 until 5 July 2024
{{flagicon image|Flag of the United Kingdom.svg}} Jonathan Reynolds
from 5 July 2024 - {{flagicon|United States}} Robert Lighthizer
until 20 January 2021 - {{flagicon|United States}} Maria Pagan
from 20 January 2021 until 18 March 2021 - {{flagicon|United States}} Katherine Tai
from 18 March 2021 until 20 January 2025
| original_signatories =
| signatories =
| parties =
- {{flagicon image|Flag of the United Kingdom.svg}} United Kingdom
- {{flagicon image|Flag of the United States.svg}} United States
| ratifiers =
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| citations =
| language = English
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| footnotes =
}}
The United Kingdom–United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States.{{Cite web|last=Truss|first=Eizabeth|date=5 May 2020|title=UK and US start trade negotiations|url=https://www.gov.uk/government/news/uk-and-us-start-trade-negotiations|access-date=25 April 2024|website=GOV.UK|archive-url=https://web.archive.org/web/20200505065546/https://www.gov.uk/government/news/uk-and-us-start-trade-negotiations|archive-date=5 May 2020|url-status=live}}
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.{{Cite web |last1= Eiser |last2= McEwen |last3= Roy |first1= David |first2= Nicola |first3= Graeme |date=7 April 2021 |title=The Trade Policies of Brexit Britain: the Influence of and Impacts on the Devolved Nations |url=https://brill.com/downloadpdf/journals/eris/8/1/article-p22_22.pdf |publisher=Brill Publishers|access-date=20 February 2024|archive-url=https://web.archive.org/web/20230414000000/https://brill.com/downloadpdf/journals/eris/8/1/article-p22_22.pdf|archive-date=14 April 2023|url-status=dead}} [https://ifs.org.uk/uploads/publications/comms/r116.pdf Alt URL] Negotiations opened in May 2020, but have stagnated since 2021 under the Biden Administration which has focused on fixing its domestic economy.{{Cite web|last=Pickard|first=Jim|date=3 May 2020|title=UK-US trade talks to begin on Tuesday|url=https://www.ft.com/content/a5f8eeb1-2c49-4125-927d-1ff0762dfdb5|access-date=25 April 2024|website=Financial Times|url-access=subscription|archive-url=https://web.archive.org/web/20200504111115/https://www.ft.com/content/a5f8eeb1-2c49-4125-927d-1ff0762dfdb5|archive-date=4 May 2020|url-status=live}}{{cite web|last=Giordano|first=Chiara|date= 21 January 2021|title=We'll fix US economy before signing trade deals, says Biden's Treasury pick Janet Yellen|url=https://www.the-independent.com/news/world/americas/us-politics/biden-brexit-us-uk-trade-deal-janet-yellen-b1791012.html|work=The Independent|access-date=26 November 2023|archive-url=https://web.archive.org/web/20231126160926/https://www.the-independent.com/news/world/americas/us-politics/biden-brexit-us-uk-trade-deal-janet-yellen-b1791012.html|archive-date=26 November 2023|url-status=live}}
History
=Trump Administration=
On 28 February 2020, the United States released its negotiating objectives.{{Cite web|last=|first=|date=2 March 2020|title=UK publishes negotiating objectives for post-Brexit US trade deal|url=https://www.itv.com/news/2020-03-02/uk-publishes-negotiating-objectives-for-us-trade-deal/|access-date=25 April 2024|website=ITV News|archive-url=https://web.archive.org/web/20200303041549/https://www.itv.com/news/2020-03-02/uk-publishes-negotiating-objectives-for-us-trade-deal/|archive-date=3 March 2020|url-status=live}} The United Kingdom released its objectives on 1 March.{{Cite web|date=1 March 2019|title=U.S. Trade Representative Releases Summary of U.S.-UK Trade Agreement Negotiations|url=https://www.trumpandtrade.com/2019/03/u-s-trade-representative-releases-summary-of-u-s-uk-trade-agreement-negotiations/|access-date=25 April 2024|website=Thompson Hine|archive-url=https://web.archive.org/web/20220625045646/https://www.thompsonhinesmartrade.com/2019/03/u-s-trade-representative-releases-summary-of-u-s-uk-trade-agreement-negotiations/|archive-date=25 June 2022|url-status=live}} The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020.{{Cite web|last1=Lawder|first1=David|last2=Shalal|first2=Andrea|date=5 May 2020|title=U.S., UK launch trade talks, pledge quick deal as virus ravages global economy|url=https://www.mobile.reuters.com/article/amp/idUSKBN22H0E0|url-status=live|archive-url=https://web.archive.org/web/20200505191813/https://mobile.reuters.com/article/amp/idUSKBN22H0E0|archive-date=5 May 2020|access-date=25 April 2024|website=Reuters}}{{Cite web|last=Warrington|first=James|date=22 September 2020|title=Liz Truss hails 'productive' fourth round of UK-US trade talks|url=https://www.mobile.reuters.com/article/amp/idUSKBN22H0E0|url-status=live|archive-url=https://web.archive.org/web/20200505191813/https://mobile.reuters.com/article/amp/idUSKBN22H0E0 |archive-date=5 May 2020|access-date=25 April 2024|website=City A.M.}}
In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous European Union–United States agreements.{{cite web|title=U.S.-UK Trade Agreement Negotiations|url=https://ustr.gov/countries-regions/europe-middle-east/europe/united-kingdom/us-uk-trade-agreement-negotiations|website=Office of the United States Trade Representative|access-date=25 April 2024|archive-url=https://web.archive.org/web/20190327135536/https://ustr.gov/countries-regions/europe-middle-east/europe/united-kingdom/us-uk-trade-agreement-negotiations|archive-date=27 March 2019|url-status=live}}
=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.{{Cite web|last1=Parker|first1=George|last2=Noonan|first2=Laura|last3=Williams|first3=Aime|title=US fires warning shot at Johnson on Northern Ireland|url=https://www.ft.com/content/2e11a5db-dec0-41df-a8c5-d8cbcb03c183|date=17 March 2021|access-date=26 April 2024|website=Financial Times|url-access=subscription|language=en|archive-date=17 March 2021|archive-url=https://web.archive.org/web/20210317040319/https://www.ft.com/content/2e11a5db-dec0-41df-a8c5-d8cbcb03c183|url-status=live}}{{Cite web|last1=Darmanin|first1=Jules|last2=Pogatchnik|first2=Shawn|last3=Casalicchio|first3=Emilio|title=US reprimands UK over Northern Ireland protocol row|url=https://www.politico.eu/article/uk-brexit-northern-ireland-protocol-david-frost-united-states-reprimands/|date=10 June 2021|access-date=26 April 2024|website=Politico|language=en|archive-date=10 June 2021|archive-url=https://web.archive.org/web/20210610094718/https://www.politico.eu/article/uk-brexit-northern-ireland-protocol-david-frost-united-states-reprimands/|url-status=live}}{{Cite web|last1=Landow|first1=Charles|last2=McBride|first2=James|title=Moving Past the Troubles: The Future of Northern Ireland Peace |url=https://www.cfr.org/backgrounder/moving-past-troubles-future-northern-ireland-peace|date=16 February 2024|access-date=25 April 2024|website=Council on Foreign Relations|language=en|archive-date=24 April 2024|archive-url=https://web.archive.org/web/20240424113527/https://www.cfr.org/backgrounder/moving-past-troubles-future-northern-ireland-peace|url-status=live}}{{Cite web |last=Bromund|first=Ted R.|title=Free Trade Between U.S., U.K. Is Step Closer |url=https://www.heritage.org/trade/commentary/free-trade-between-us-uk-step-closer |website=The Heritage Foundation|language=en|access-date=26 April 2024|archive-url=https://web.archive.org/web/20220628143430/https://www.heritage.org/trade/commentary/free-trade-between-us-uk-step-closer|archive-date=28 June 2022|url-status=unfit}} With the administration of President Joe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states.{{cite web|last1=Pickard|first1=Jim|last2=Williams|first2=Aime|title=UK has no plans to strike US trade deal during Rishi Sunak visit to Washington|date=30 May 2023|website=Financial Times|url=https://www.ft.com/content/1fd173a6-8718-4798-b692-685801ec1604|access-date=26 April 2024|url-access=subscription|archive-url=https://web.archive.org/web/20230530231734/https://www.ft.com/content/1fd173a6-8718-4798-b692-685801ec1604|archive-date=30 May 2023|url-status=live}} Regulation of international trade is a federal responsibility under the Commerce Clause of the U.S. Constitution, preventing state agreements from changing customs rules.{{Cite web|title=ArtI.S8.C3.8.1 Overview of Foreign Commerce Clause|url=https://constitution.congress.gov/browse/essay/artI-S8-C3-8-1/ALDE_00001057/|access-date=26 April 2024|website=Constitution Annotated|language=en|archive-date=2 May 2023|archive-url=https://web.archive.org/web/20230502220251/https://constitution.congress.gov/browse/essay/artI-S8-C3-8-1/ALDE_00001057/|url-status=live}} Therefore, the UK has aimed at signing Memorandum of Understanding (MoU) agreements with numerous states.{{Cite web|last=Nevett|first=Joshua|title=Brexit: UK signs first US state-level trade agreement with Indiana|url=https://www.bbc.co.uk/news/uk-politics-61604784|date=10 June 2021|access-date=26 April 2024|website=BBC News|language=en|archive-date=27 May 2022|archive-url=https://web.archive.org/web/20220527102118/https://www.bbc.com/news/uk-politics-61604784|url-status=live}} MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies.{{Cite web|last=Shalal|first=Andrea|title=Britain Eyes Trade Agreements With California, Utah|url=https://www.usnews.com/news/top-news/articles/2022-12-09/britain-eyes-trade-agreements-with-california-utah|date=9 December 2022|access-date=26 April 2024|website=US News|language=en|archive-date=10 December 2022|archive-url=https://web.archive.org/web/20221210072121/https://www.usnews.com/news/top-news/articles/2022-12-09/britain-eyes-trade-agreements-with-california-utah|url-status=live}} Former British trade minister Penny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA.{{cite web|last=Harper|first=Jo|title=UK-US: What's happened to their free trade deal?|date=7 July 2023|access-date=26 April 2024|website=Deutsche Welle|url=https://www.dw.com/en/uk-us-whats-happened-to-their-free-trade-deal/a-66122162|archive-url=https://web.archive.org/web/20230707163046/https://www.dw.com/en/uk-us-whats-happened-to-their-free-trade-deal/a-66122162|archive-date=7 July 2023|url-status=live}}
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.{{cite web |title=UK minister to sign trade pact with Florida Governor DeSantis|date=8 November 2023|website=The Straits Times|url=https://www.straitstimes.com/world/europe/uk-minister-to-sign-trade-pact-with-florida-governor-desantis|access-date=20 November 2023|archive-url=https://web.archive.org/web/20231115020505/https://www.straitstimes.com/world/europe/uk-minister-to-sign-trade-pact-with-florida-governor-desantis|archive-date=15 November 2023|url-status=live}}
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.{{Cite news |last=Riley-Smith |first=Ben |date=12 April 2023|title=Exclusive: US trade deal talks won't start until 2025 at the earliest |language=en-GB |website=The Telegraph|url=https://www.telegraph.co.uk/politics/2023/04/12/us-trade-deal-talks-2025-biden-sunak/ |access-date=28 June 2023|issn=0307-1235|archive-url=https://web.archive.org/web/20230412110742/https://www.telegraph.co.uk/politics/2023/04/12/us-trade-deal-talks-2025-biden-sunak/|archive-date=12 April 2023|url-status=live}}
In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US.{{cite web|last1=Hunnicutt|first1=Trevor|last2=Smout|first2=Alistair|last3=Ravikumar|first3=Sachin|title=US and UK back new 'Atlantic Declaration' for economic cooperation|date=8 June 2023|website=Reuters|url=https://www.reuters.com/world/us-uk-back-new-atlantic-declaration-economic-cooperation-2023-06-08/|access-date=26 April 2024|archive-date=8 June 2023|archive-url=https://web.archive.org/web/20230608210446/https://www.reuters.com/world/us-uk-back-new-atlantic-declaration-economic-cooperation-2023-06-08/|url-status=live}} The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers.{{cite web|last=Rigby|first=Beth|title=Sunak and Biden agree 'Atlantic Declaration' to boost economic security|date=8 June 2023|website=Sky News|url=https://news.sky.com/story/uk-and-us-agree-new-partnership-to-boost-economic-security-as-sunak-and-biden-meet-at-white-house-12899035#|access-date=26 April 2024|archive-url=https://web.archive.org/web/20230608182044/https://news.sky.com/story/uk-and-us-agree-new-partnership-to-boost-economic-security-as-sunak-and-biden-meet-at-white-house-12899035|archive-date=8 June 2023|url-status=live}}{{cite web|last=Mason|first=Chris|title=What Sunak's Atlantic Declaration is – and isn't|date=9 June 2023|website=BBC News|url=https://www.bbc.co.uk/news/uk-politics-65852054|access-date=26 April 2024|archive-url=https://web.archive.org/web/20230609054153/https://www.bbc.co.uk/news/uk-politics-65852054|archive-date=9 June 2023|url-status=live}} 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.{{cite web|last=Sunak|first=Rishi|title=UK and US launch first-of-its kind economic partnership|date=8 June 2023|work=GOV.UK|url=https://www.gov.uk/government/news/uk-and-us-launch-first-of-its-kind-economic-partnership|access-date=26 April 2024|archive-url=https://web.archive.org/web/20230608184358/https://www.gov.uk/government/news/uk-and-us-launch-first-of-its-kind-economic-partnership|archive-date=8 June 2023|url-status=live}} 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.{{cite web|last1=Parker|first1=George|last2=Schwartz|first2=Felicia|last3=Politi|first3=James|last4=Pickard|first4=Jim|title=Joe Biden and Rishi Sunak unveil 'Atlantic declaration' to strengthen economic ties|date=8 June 2023|work=Financial Times|url=https://www.ft.com/content/8f1667f8-f17b-4a56-82af-97fd812c4fe6|access-date=26 April 2024|url-access=subscription|archive-url=https://web.archive.org/web/20230608195845/https://www.ft.com/content/8f1667f8-f17b-4a56-82af-97fd812c4fe6|archive-date=8 June 2023|url-status=live}}
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.{{cite web|last=Crerar|first=Pippa|title=Kemi Badenoch signs treaty for UK to join Indo-Pacific trade bloc|date=16 July 2023|website=The Guardian|url=https://www.theguardian.com/politics/2023/jul/16/kemi-badenoch-signs-treaty-for-uk-to-join-indo-pacific-trade-bloc-cptpp-uk-economy|access-date=26 April 2024|archive-url=https://web.archive.org/web/20230716121921/https://www.theguardian.com/politics/2023/jul/16/kemi-badenoch-signs-treaty-for-uk-to-join-indo-pacific-trade-bloc-cptpp-uk-economy|archive-date=16 July 2023|url-status=live}} Badenoch stated that “The US is not carrying out any free trade agreements with any country”.{{cite web|last1=Reynolds|first1=Isabel|last2=Zhou|first2=Wei|title=UK Joins Pacific Trade Deal, Sees 'Very Low' Chance of US Pact|date=16 July 2023|work=Bloomberg|url=https://www.bloomberg.com/news/articles/2023-07-16/uk-signs-pact-to-join-pacific-trade-deal-focus-turns-to-china|access-date=26 April 2024|url-access=subscription|archive-url=https://web.archive.org/web/20230716091520/https://www.bloomberg.com/news/articles/2023-07-16/uk-signs-pact-to-join-pacific-trade-deal-focus-turns-to-china|archive-date=16 July 2023|url-status=live}}
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.{{cite web|last1=Lanktree|first1=Graham|last2=Bade|first2=Gavin|title=Revealed: Joe Biden and Rishi Sunak seek UK/US trade pact before 2024 elections|date=3 October 2023|access-date=3 October 2023|website=Politico|url=https://www.politico.eu/article/revealed-joe-biden-rishi-sunak-seek-uk-us-trade-pact-before-2024-elections/|archive-url=https://web.archive.org/web/20231003175721/https://www.politico.eu/article/revealed-joe-biden-rishi-sunak-seek-uk-us-trade-pact-before-2024-elections/|archive-date=3 October 2023|url-status=live}} The proposed partnership aims to cover subjects such as digital trade, labour protections and agriculture.{{cite web|last=Stacey|first=Kiran|title=US wants UK to open up its agriculture markets as part of new trade deal|date=3 October 2023|access-date=3 October 2023|work=The Guardian|url=https://www.theguardian.com/business/2023/oct/03/us-wants-uk-to-open-up-its-agriculture-markets-as-part-of-new-trade-deal|archive-date=4 October 2023|archive-url=https://web.archive.org/web/20231004071352/https://www.theguardian.com/business/2023/oct/03/us-wants-uk-to-open-up-its-agriculture-markets-as-part-of-new-trade-deal|url-status=live}} 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.{{cite web|last=Smout|first=Alistair|title=UK minister says "zero" chance of free trade deal with Biden|date=3 October 2023|access-date=3 October 2023|website=Reuters|url=https://www.reuters.com/world/uk/uk-minister-says-zero-chance-free-trade-deal-with-biden-2023-10-03/|archive-url=https://web.archive.org/web/20231003193411/https://www.reuters.com/world/uk/uk-minister-says-zero-chance-free-trade-deal-with-biden-2023-10-03/|archive-date=3 October 2023|url-status=live}} On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned.{{cite web|last=Stacey|first=Kiran|title=Joe Biden signals he has no interest in signing US-UK trade agreement|date=18 December 2023|access-date=18 December 2023|work=The Guardian|url=https://www.theguardian.com/politics/2023/dec/18/joe-biden-signals-he-has-no-interest-in-signing-us-uk-trade-agreement|archiveurl=https://web.archive.org/web/20231218155129/https://www.theguardian.com/politics/2023/dec/18/joe-biden-signals-he-has-no-interest-in-signing-us-uk-trade-agreement|archive-date=18 December 2023|url-status=live}}
=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.”{{cite web|last=Diaz|first=Alicia|title=Lawmakers Introduce UK-US Trade Bill Before Starmer Meets Trump|date=27 February 2025|access-date=27 February 2025|url-access=subscription|website=Bloomberg|language=en-US|url=https://www.bloomberg.com/news/articles/2025-02-27/lawmakers-introduce-uk-us-trade-bill-before-starmer-meets-trump|archiveurl=https://web.archive.org/web/20250227112938/https://www.bloomberg.com/news/articles/2025-02-27/lawmakers-introduce-uk-us-trade-bill-before-starmer-meets-trump|archive-date=27 February 2025|url-status=live}}
Chapters
Areas covered in the FTA and contention points:{{Cite web|last=Powney|first=Mark|date=20 May 2020|title=UK-US Free Trade Agreement Negotiations Progress|url=https://businessnewswales.com/uk-us-free-trade-agreement-negotiations-progress/|access-date=26 April 2024|website=Business News Wales|archive-url=https://web.archive.org/web/20200611114808/https://businessnewswales.com/uk-us-free-trade-agreement-negotiations-progress/|archive-date=11 June 2020|url-status=live}}
- 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
{{Reflist}}
{{Free trade agreements of the United Kingdom}}
{{Free trade agreements of the United States}}
{{DEFAULTSORT:United Kingdom-United States free trade agreement}}
Category:Free trade agreements of the United Kingdom
Category:Free trade agreements of the United States