United Kingdom–United States Free Trade Agreement

The United Kingdom–United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States.

The UK became legally able to independently negotiate trade agreements when it left the European Union from 1 January 2020 due to a transition period which lasted until the UK formally exited the EU. Negotiations opened in May 2020, but have stagnated since 2021 under the Biden Administration which has focused on fixing its domestic economy.

Trump Administration
On 28 February 2019, the United States released its negotiating objectives. The United Kingdom released its objectives on 1 March. The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020.

In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous European Union–United States agreements.

Biden Administration
The Biden Administration made it clear that the US would not further talks about a potential FTA, due to British threats against ratifying the Northern Ireland Protocol which would violate international law, with dangerous ramifications that could threaten the Good Friday Agreement. With the administration of President Joe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states. Regulation of international trade is a federal responsibility under the Commerce Clause of the U.S. Constitution, preventing state agreements from changing customs rules. Therefore, the UK has aimed at signing Memorandum of Understanding (MoU) agreements with numerous states. MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies. Former British trade minister Penny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA.

Trade negotiations ongoing:


 * California
 * Colorado
 * Illinois
 * New York

Following President Joe Biden and UK Prime Minister Rishi Sunak's meeting held in Northern Ireland on 12 April 2023, talks of a UK–US free trade agreement were postponed until at the very least 2025.

In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US. The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers. The declaration commits both nations to increase research collaboration in future technologies, such as AI, future 5G and 6G telecoms, quantum, semiconductors and engineering biology. Further, these talks led to a commitment in principle to a new UK–US Data Bridge that facilitates the transfer of data by UK businesses to certified U.S. organizations.

During the signing of the accession of the United Kingdom to CPTPP on the 16th of July 2023, Kemi Badenoch blamed the lack of progress on the UK-US FTA on the change of administration from Donald Trump to Joe Biden after the 2020 election. Badenoch stated that “The US is not carrying out any free trade agreements with any country”.

On 3 October 2023, Biden and Sunak were reported to be preparing a "foundational" trade agreement between the two countries which would be modeled off of the Indo-Pacific Economic Framework. However this agreement will not constitute as a free trade agreement under World Trade Organization rules as the proposals do not contain market access commitments. The proposed partnership aims to cover subjects such as digital trade, labour protections and agriculture. On the same day, Badenoch reiterated that there was "zero" chance of a free trade agreement under President Biden's administration, citing his attitude to such deals. On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned.

Chapters
Areas covered in the FTA and contention points:
 * Trade in Goods
 * Sanitary and Phytosanitary Measures (SPS):
 * Customs and Trade Facilitation
 * Rules of origin
 * Technical Barriers to Trade (TBT)
 * Good Regulatory Practices
 * Transparency, Publication, and Administrative Measures
 * Trade in Services, Including Telecommunications and Financial Services
 * Digital Trade in Goods and Services and Cross-Border Data Flows
 * Investment
 * Intellectual Property
 * Procedural Fairness for Pharmaceuticals and Medical Devices
 * State-Owned and Controlled Enterprises (SOEs)
 * State Subsidies
 * Competition Policy
 * Labour
 * Environment
 * Anti-corruption
 * Trade Remedies
 * Settlement
 * General Provisions
 * Currency