The United Kingdom signed a trade pact with Texas on the 13th of March to enhance trade links between the two states, as Business and Trade Secretary Kemi Badenoch welcomed Texas Governor Greg Abbott to London.
With a GDP of £1.9 trillion in 2022, Texas is the second-largest state economy in the United States, making this trade pact with a US state one of the most economically significant ever negotiated by the UK. The UK is the eighth-largest international goods export market for Texas, with total trade in goods already valued at £14.7 billion in 2023. Major products exported to Texas include nuclear equipment, aircraft, and pharmaceuticals. The pact aims to expedite, simplify, and reduce costs for UK and Texas businesses by addressing trade barriers, boosting investments, and stimulating trade between the two regions. It also targets sectors where the UK and Texas share expertise, such as new energy solutions including hydrogen and carbon capture, utilisation, and storage, life sciences, and professional business services.
The signing of this agreement comes just four months after the UK-Florida Memorandum of Understanding (MoU), bringing the number of agreements with the United States to eight, with a combined GDP of £5.3 trillion. Examples of businesses benefiting from these agreements include Inovus Medical, an innovative surgical training technology company based in Merseyside, which launched its US headquarters in Tampa Bay in December 2023, just one month after the UK-Florida MoU was signed.
The United States is the UK's largest trading partner and the biggest investor in the UK. To boost trade with the United States, the UK adopts a "dual-track" approach, working with individual states to increase trade through trade and economic agreements while simultaneously engaging with the federal government to unlock national-level opportunities. The UK is actively negotiating memoranda of understanding with other states, including California, Colorado, and Illinois.
The UK-Texas trade pact will promote cooperation in various areas of opportunity and future growth, such as aerospace, advanced technologies, supply chains and critical minerals, infrastructure, transportation services, and chemicals.
Thanks to recent agreements between the UK and US states, lots of opportunities are available for businesses wanting to set up in the United States. Exploring new markets requires careful consideration and informed decision-making.
At the Greater Manchester Chamber of Commerce, we're here to support you.
Through our network of partners in the USA, we offer tailored market entry services to meet your specific needs. Whether you need market research, assistance with partner finding, or B2B matchmaking services, we're here to help every step of the way. You can book a complimentary 1-2-1 Session with our network of approved suppliers here
Additionally, we can provide invaluable advice and information on local regulations, taxes, certifications, and more, ensuring a smooth transition into new markets. From product/service launch events to soft landing options such as incubation services, we provide comprehensive support to facilitate your expansion efforts. Let the Greater Manchester Chamber of Commerce be your partner in realising your international ambitions. Contact us today at exportbritain@gmchamber.co.uk to explore how we can assist you with UK and overseas market entry services, helping you navigate the complexities of global business expansion with confidence and success.
Source: DBT