Britain signed a trade agreement with Texas on Wednesday after failing to secure a post-Brexit deal with the wider United States. The agreement, signed by U.K. Trade Secretary Kemi Badenoch and Texas Governor Greg Abbott in London, is seen as a step towards improving cooperation between U.K. businesses and peers in the U.S. state.
The signing of the agreement with Texas is significant for the U.K., as it marks the eighth state-level pact with the U.S. This means that U.K. firms now have access to states with a combined GDP of £5.3 trillion ($6.8 trillion), according to Badenoch.
Governor Abbott highlighted that the Statement of Mutual Cooperation would promote economic growth on both sides of the Atlantic, calling it a pathway to increased prosperity.
UK-Texas Trade Ties (Credits: France 24)
The U.K. government, led by Prime Minister Rishi Sunak, has faced challenges in delivering on its promise to sign major trade deals post-Brexit. Negotiations for a broader trade deal with the U.S. have not been successful, and talks with Canada have also paused.
Brexit supporters have argued that leaving the EU would bring economic prosperity and allow the U.K. to establish itself on the world stage.
UK-Texas Trade Ties (Credits: The Hill)
However, opponents have raised concerns about the impact of Brexit, including rising inflation, a cost-of-living crisis, and increased red tape.
Despite these challenges, the U.K. has signed trade deals with several countries, including Australia, New Zealand, and Singapore. The country has also joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes 11 Asia-Pacific countries.
