TheUnited Kingdom–United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between theUnited Kingdom and theUnited States.[1]
The UK became legally able to independently negotiatetrade agreements when itleft theEuropean Union from 1 January 2020 due to a transition period which lasted until the UK formally exited the EU.[2] Negotiations opened in May 2020, but have stagnated since 2021 under theBiden administration, which focused on fixing its domestic economy,[3][4] though some hope has been recovered during thesecond Trump administration .[5]
On 28 February 2020, the United States released its negotiating objectives.[11] The United Kingdom released its objectives on 1 March.[12] The United Kingdom and the United States began negotiations on 5 May 2020, and have had four rounds of negotiations as of September 2020.[13][14]
In December 2020, the two countries signed an agreement on various goods, continuing trading terms from previous European Union–United States agreements.[15]
The Biden Administration made it clear that the US would not further talks about a potential FTA, due to British threats against ratifying theNorthern Ireland Protocol which would violateinternational law, with dangerous ramifications that could threaten theGood Friday Agreement.[16][17][18][19] With the administration of PresidentJoe Biden uninterested in further negotiations, the United Kingdom began negotiating economic agreements with individual U.S. states.[20] Regulation ofinternational trade is a federal responsibility under theCommerce Clause of theU.S. Constitution, preventing state agreements from changing customs rules.[21] Therefore, the UK has aimed at signingMemorandum of Understanding (MoU) agreements with numerous states.[22] MoUs aim to remove market access barriers and increase trade and investment opportunities for UK and US companies.[23] FormerBritish trade ministerPenny Mordaunt claimed that US state-level deals would pave the way for a full UK-US FTA.[24]
UK–US State Memorandum of Understanding Agreements
Following President Joe Biden andUK Prime MinisterRishi Sunak's meeting held inNorthern Ireland on 12 April 2023, talks of a UK–US free trade agreement were postponed until at the very least 2025.[35]
In June 2023, Biden and Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US.[36] The agreement included a limited trade pact covering critical minerals needed forEVbatteries, a new data protection deal, and easing othertrade barriers.[37][38] The declaration commits both nations to increase research collaboration in future technologies, such asAI, future5G and6G telecoms,quantum,semiconductors andengineering biology.[39] 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.[40]
During the signing of theaccession of the United Kingdom to CPTPP on 16 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.[41] Badenoch stated that “The US is not carrying out any free trade agreements with any country”.[42]
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 theIndo-Pacific Economic Framework. However this agreement will not constitute as afree trade agreement underWorld Trade Organization rules as the proposals do not containmarket access commitments.[43] The proposed partnership aims to cover subjects such as digital trade, labour protections andagriculture.[44] 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.[45] On 18 December 2023, it was announced that all talks for the "foundational trade partnership" had been abandoned.[46]
On 27 February 2025, a bipartisan group of US lawmakers re-introduced a bill that authorised comprehensive trade talks with the UK, named 'The United Act'. The broadly-constructed measure would allow for initiating talks on “tariff and nontariff barriers affecting any industry, product, or service sector.”[47]
On 8 May 2025, the UK and US announced an agreement in principle on an Economic Prosperity Deal, paving the way for renewed negotiations.[48][49]
According to a POLITICO-Public First poll conducted in April 2025, the vast majority of American and British adults support their governments reaching an agreement, but less than a third of respondents in the UK and 44% of Americans said they believe President Donald Trump will stick to it.[50]
Indiana
North Carolina
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Washington
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The full text ofthe General Terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal at Wikisource
