Today, on Wednesday, March 13th, the UK is set to formalise a trade agreement with Texas, aimed at enhancing commercial and investment relations between the two entities. Business and Trade Secretary Kemi Badenoch will host Texas Governor Greg Abbott in London for the signing ceremony.
Texas boasts the second-largest economy among US states, with a GDP reaching £1.9 trillion in 2022 – surpassing that of Italy and Canada. Consequently, this trade pact marks the UK’s most economically significant agreement with a US state to date.
The primary objective of this agreement is to streamline business processes, reduce barriers, foster investment growth, and stimulate commerce between the UK and Texas, thereby facilitating smoother and more cost-effective operations for firms from both regions.
Responding to the news, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“This agreement will boost bilateral trade in emerging industries such as carbon capture and storage, life sciences, and hydrogen.
“Trade between Texas and the UK was worth $21.2bn in 2022. The UK is the 7th largest destination for Texas’ exports, and in return, the UK is the 14th largest exporting market into the Lone Star State.
“The UK is the main source of Foreign Direct Investment projects into Texas, with over $5.7bn in capital investment stock in the period between 2013-2022.
“Agreements at state level in the US are beneficial for investment priorities, and trade promotion. But we still need to see further accords to realise the full potential of the Atlantic Declaration.
“Negotiating agreements on critical minerals and digital trade with the US federal government should be the UK’s next focus. This would provide a strong boost to trade in climate friendly technology and help make exporting, to each other’s markets, speedier and more efficient.”
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