UK expands US economic footprint with Texas trade deal

Texas has the second largest US state economy, with a GDP of £1.9 trillion (~$2.43 trillion) in 2022—larger than Italy and Canada—making this the UK’s most economically significant trade pact with a US state to date, UK’s Department for Business and Trade said in a press release.

The pact aims 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.

The UK is Texas’ 8th largest international goods export market, with total trade in goods already worth £14.7 billion (~$18.82 billion) in 2023.

The signing comes just four months on from agreeing the UK-Florida memorandum of understanding (MoU), bringing the number of agreements with US states up to eight – worth a combined GDP of £5.3 trillion (~$6.79 trillion), which is greater than that of Japan and equivalent to a quarter of the US economy.

Business and Trade Secretary Kemi Badenoch said: “I’m delighted to welcome Governor Abbott to the UK for this landmark signing. Today’s signature with Texas marks the UK’s eighth US state-level pact, meaning UK firms now have access to states with a combined GDP of £5.3 trillion - equivalent to a quarter of the whole US economy. This shows our US state-level strategy is working and really delivering for British businesses.”

Texas Governor Greg Abbott said: “As our ninth largest trade partner, the United Kingdom plays a critical role in the Texas economic juggernaut. Strengthening the bond between Texas and the United Kingdom is crucial for our shared economies to prosper.

“By signing this Statement of Mutual Cooperation today, we will further promote economic growth on both sides of the Atlantic. Texas is the economic engine of America, where entrepreneurs from around the globe can cast a vision and know they can achieve it. Working with our British partners, we will chart a greater path towards success and opportunity and create an even more robust economic partnership.”

Fibre2Fashion News Desk (KD)