Earlier this month, the UK signed an agreement on closer trade co-operation with Texas as the Government continues talks over a Free Trade Agreement at a federal level.
The agreement follows the signing of a similar pact with Florida at the end of last year and marks the UK's eighth US state-level pact. Texas is the US' second largest state economy and larger than many nation states including Brazil, Canada, and Italy. The aim of the pact is to help make it quicker, easier, and cheaper for UK and Texas firms to do business by tackling trade barriers, growing investment, and driving commerce between the UK and Texas.
Although it is not a formal trade deal and will not lower tariffs as a free trade deal would with individual US states not having the power to sign these, it is similar to a memorandum of understanding, designed to improve co-operation between the economies of the UK and Texas.
The UK is Texas' eight largest international goods export market, with total trade in goods already worth £14.7 billion in 2023. The top products being exported to Texas from the UK include nuclear equipment, aircraft, and pharmaceutical products.
This co-operation will focus on sectors where the UK and Texas have shared expertise, such as new energy solutions, including hydrogen and carbon capture, utilisation, and storage, life sciences, and professional business services.
Gowling WLG has a US Initiative with a focus on Texas, which Hugh Maule and Gareth Baker co-lead out of the UK and Steve Will in Canada. Please get in touch if you are seeking to explore opportunities that could arise from the new trade cooperation agreement.