The United Kingdom has established a significant partnership with Texas, the second-largest state in the US, with the aim of promoting cooperation in green energy, aerospace, and advanced technologies.
This memorandum of understanding (MoU), though not legally binding, represents the eighth agreement between the UK and a US state post-Brexit. Collectively, these agreements encompass a combined gross domestic product (GDP) amounting to £5.3 trillion ($6.8 trillion), equivalent to a quarter of the US economy.
As outlined by the UK’s trade department, the MoU will facilitate the mutual recognition of engineering qualifications. This initiative is expected to streamline talent acquisition for British infrastructure projects. Additionally, the agreement aligns with previous arrangements between Texas and the UK, particularly concerning the mutual recognition of architects.
Furthermore, the partnership seeks to simplify business operations for companies operating in sectors where the UK is actively expanding, such as hydrogen and carbon capture. The goal is to address trade barriers, encourage investment, and stimulate commerce between the UK and Texas.
Although this deal marks progress in UK-US trade relations, it does not constitute a comprehensive Free Trade Agreement (FTA) that had been anticipated by Brexit supporters. Last year, President Joe Biden’s administration withdrew the possibility of a federal-level FTA, prompting the UK to pursue bilateral agreements with individual states and concentrate on specific sectors like critical minerals.
Governor Greg Abbott of Texas expressed enthusiasm about the pact, emphasizing the economic significance of the UK as Texas’ ninth-largest trade partner. Abbott highlighted the potential for economic growth on both sides of the Atlantic.
In response, UK Business and Trade Secretary Kemi Badenoch praised the collaboration with Texas as evidence of the effectiveness of the UK’s state-level strategy. Badenoch emphasized the tangible benefits accruing to British businesses through strategic partnerships like this one.
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