LONDON (Reuters) – Britain will sign a memorandum of understanding on trade with Texas on Wednesday, the largest U.S. state so far to agree to such a pact aimed at boosting investment.
Britain is seeking state-level agreements with the United States, while talks on a free trade deal at the federal level have been frozen since President Joe Biden took office.
“Today’s signing with Texas marks the UK’s eighth state-level pact, meaning British businesses now have access to states with a combined GDP of £5.3 trillion ($6.76 trillion ) – equivalent to a quarter of the entire US economy”, Business and Trade Secretary Kemi Badenoch said in a statement.
“This shows that our US state-level strategy is working and really delivering results for British businesses.”
Britain’s Department of Business and Trade said the deal with Texas, the second-largest US state economy, covers sectors such as energy, life sciences and professional services.
The agreement comes four months after a similar agreement with Florida. Britain is also in talks with California, Colorado and Illinois.
“Strengthening the bond between Texas and the United Kingdom is critical for our shared economies to thrive,” said Texas Governor Greg Abbott.
“By signing this Declaration of Mutual Cooperation today, we will further promote economic growth on both sides of the Atlantic,” he added.
($1 = 0.7836 pounds)