The United Kingdom is poised to announce a substantial trade agreement worth £725 billion with one of the United States’ states, marking another significant achievement for post-Brexit Britain.
This deal, forged with Washington State, marks the sixth such agreement signed by the UK with individual US states. Collectively, these agreements grant British businesses access to a staggering combined GDP of £2.2 trillion within the American market.
Washington State is home to major global corporations such as Amazon, Starbucks, Microsoft, and Boeing, boasting a GDP roughly equivalent to Poland.
Trade Minister Nusrat Ghani will formally sign the memorandum of understanding (MoU) on behalf of the UK, providing British businesses and services with expanded access to US markets. As part of the deal, Ms. Ghani will lead a delegation comprising 35 UK enterprises to the 2023 Boeing Supplier Showcase. These companies have been specifically chosen by Boeing to engage with their procurement and supply chain teams.
Despite efforts by the Biden administration to hinder progress on a UK/US federal trade agreement, state-level agreements have proven to be of paramount importance. These state deals open doors for the UK’s services sector, which constitutes 80 percent of the British economy, to access the US market.
Aerospace will be a focal sector under the MoU, aiming to facilitate additional trade between the UK and Washington State. Boeing has already invested over £12 billion in the UK since 2015. Their most recent venture, an £80 million composite research facility in Sheffield, will establish new long-term partnerships and supply chains.
Nusrat Ghani commented, “Our pact with the state of Washington is a win for the UK, opening a door for our businesses to trade more openly and unlock new opportunities in key sectors. Each US state is a massive global market in its own right, and many have economies larger than the GDP of whole countries. By notching up our sixth such deal, we’ve surpassed the £2 trillion mark for combined GDP of states who’ve done a deal with the UK, with many more in our sights.”
Washington State Governor Jay Inslee added, “Today’s MoU makes the UK Washington’s latest global partner in trade and innovation focused on clean technology and industry.”
The UK has previously signed MoUs with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and now Washington. Collectively, these states imported £5.1 billion worth of UK goods in 2022.
Additionally, the UK is close to finalizing another deal with Florida, with a delegation from Jacksonville visiting the UK recently.
Marco Forgione, Director General of the Institute of Export and International Trade, expressed the unique value of these MoUs, stating, “What’s great about them is that they are each unique and distinctive based on the profile of the state itself.”
Maria Laine, President of Boeing in the UK, Ireland, and the Nordic region, hailed the UK/Washington state deal, emphasizing Boeing’s commitment to expanding the UK supply chain and supporting global decarbonization through trade relationships.
Matt Farnsworth, Commercial Director at the University of Sheffield AMRC, applauded the trade missions organized by the Department for Business and Trade as valuable opportunities for research organizations like the University of Sheffield Advanced Manufacturing Research Centre (AMRC).