Us Britain Free Trade Agreement

The US-UK Free Trade Agreement: What You Need to Know

It`s been over a year since the United Kingdom officially left the European Union, and since then, the country has been working hard to create new trade relationships with its global partners. One of the most significant partnerships on the horizon is a free trade agreement between the UK and the United States.

Both countries have expressed a strong desire to enter into a free trade agreement, with the UK stating that it wants to create its own “Global Britain” trading strategy. Negotiations began in May 2020, but progress has been slow due to the COVID-19 pandemic and other political factors.

What is a Free Trade Agreement?

A free trade agreement (FTA) is an international agreement between two or more countries that eliminates or reduces tariffs, quotas, and other trade barriers between them. The goal of an FTA is to promote trade and economic growth by facilitating the movement of goods and services across borders.

Benefits of a US-UK FTA

A free trade agreement between the US and the UK would provide many benefits for both countries. For the UK, it would help to increase trade flows with the world`s largest economy, which would be a significant boost for the UK economy. According to a study by the Cato Institute, a US-UK FTA could increase GDP in the UK by around 0.4% and in the US by around 0.06%.

For the US, it would provide a valuable trading partner outside of the EU, which would be crucial for the US in the context of its trade tensions with the EU. It would also create new opportunities for US businesses to sell their goods and services in the UK, which is currently the sixth-largest market for US exports.

Challenges of a US-UK FTA

There are several challenges to negotiating a US-UK FTA. One of the most significant obstacles is the issue of agriculture. The US has expressed a desire for greater access to the UK market for its agricultural products, which are currently restricted by EU regulations. However, the UK has been reluctant to open its market to US agricultural products, particularly those produced using methods that are not allowed under EU regulations.

Another significant challenge is the issue of digital trade. The US has been pushing for provisions in the agreement that would protect data flows and e-commerce, while the UK has been cautious about agreeing to such provisions, as they could conflict with the EU`s General Data Protection Regulation (GDPR).


A free trade agreement between the US and the UK would be a significant achievement for both countries, but negotiations are likely to be challenging due to the numerous issues that need to be addressed. The UK has been pushing for a quick agreement to demonstrate its ability to create new trade relationships post-Brexit, but it is unclear when an agreement will be reached. In any case, a US-UK FTA would be a critical step in the UK`s journey toward becoming a more global trading nation.

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