UK inks trade pact with Texas to drive green industry collaboration

The United Kingdom has forged a significant partnership with Texas, the second-largest state in the US, aimed at fostering collaboration in green energy, aerospace, and advanced technologies.

This non-binding memorandum of understanding (MoU) marks the eighth agreement between the UK and a US state post-Brexit, with a combined gross domestic product totalling £5.3 trillion ($6.8 trillion), equivalent to a quarter of the US economy.

According to the UK’s trade department, the MoU will facilitate mutual recognition of engineering qualifications, streamlining talent acquisition for British infrastructure projects.

Additionally, it aligns with similar agreements previously established between Texas and the UK, particularly regarding mutual recognition of architects.

The agreement also aims to simplify business operations for companies in sectors the UK is actively expanding into, such as hydrogen and carbon capture.

This initiative is an attempt to address trade barriers, promote investment, and stimulate commerce between the UK and Texas, as emphasised by the trade department.

While the deal signifies a step forward in UK-US trade relations, it falls short of a comprehensive Free Trade Agreement (FTA) that Brexit supporters had anticipated.

President Joe Biden’s administration withdrew the possibility of a federal-level FTA last year, prompting the UK to pursue bilateral agreements with individual states and focus on specific sectors like critical minerals.

Bloomberg cited Texas Governor Greg Abbott who expressed enthusiasm about the pact, highlighting the economic significance of the UK as Texas’ ninth-largest trade partner.

Abbott emphasised that the MoU would bolster economic growth on both sides of the Atlantic.

In response, UK Business and Trade Secretary Kemi Badenoch lauded the collaboration with Texas as a testament to the effectiveness of the UK’s state-level strategy. Badenoch stressed that the agreement highlighted the tangible benefits accruing to British businesses through strategic partnerships.