The United States and the United Kingdom unveiled the general terms for a significant new bilateral “Economic Prosperity Deal” (EPD) on Friday. The deal aims to bolster trade, create jobs, and strengthen the economic foundations of the historic “Special Relationship.”
The announcement, stemming from a commitment by President Donald J. Trump and Prime Minister Sir Keir Starmer, outlines a roadmap for deeper economic integration based on fairness and reciprocity.
While the document released today does not constitute a legally binding agreement, it signals the immediate commencement of negotiations to formalize and implement the ambitious proposals.
READ :US-UK Trade Deal: What It Means For Businesses And Consumers
Both nations envision the EPD as a dynamic agreement that can expand over time to encompass additional sectors.
The core objectives of the EPD are threefold: to increase the quality and volume of mutually beneficial trade, thereby generating high-paying jobs in both countries; to dismantle barriers, making it easier for American and British businesses to operate, invest, and trade across the Atlantic; and to ensure the Special Relationship is underpinned by a robust, fair, and future-focused economic partnership.
Tariff Reductions: Both countries intend to reduce applied tariff rates on a preferential basis for a range of originating goods in sectors of importance to each other. Specific measures include:
- US Beef to UK: The UK will eliminate its 20% tariff on U.S. beef and establish a preferential duty-free quota of 13,000 metric tons.
- UK Beef to US: The US will reallocate 13,000 metric tons of its existing “Other Countries” tariff rate quota (TRQ) for beef to the United Kingdom.
- US Ethanol to UK: The UK will offer a preferential duty-free TRQ of 1.4 billion liters for U.S. ethanol.
- UK Automotive to US: The US will create a quota of 100,000 vehicles for UK automotive imports at a 10% tariff rate, with arrangements for associated auto parts.
- UK Steel and Aluminum: Contingent on the UK meeting U.S. requirements on supply chain security, the US will construct a quota at most favored nation (MFN) rates for UK steel, aluminum, and certain derivative products.
- Pharmaceuticals: Both nations intend to negotiate “significantly preferential treatment outcomes” for pharmaceuticals and their ingredients, pending a U.S. Section 232 investigation and UK compliance with supply chain security. The UK also confirmed it will endeavor to improve the environment for pharmaceutical companies operating within its borders.
READ: Trump Announces ‘Historic’ US-UK Trade Deal On Victory Day Anniversary, Stocks Climb
Addressing Non-Tariff Barriers: The deal aims to enhance agricultural market access, with both countries affirming that imports must meet respective sanitary and phytosanitary (SPS) standards. They also plan to expand Mutual Recognition Agreements (MRAs) for industrial goods and progress towards an agreement on services domestic regulation.
Boosting Digital Trade: An ambitious set of digital trade provisions is planned, covering services (including financial services), paperless trade, pre-arrival processing, and digitalized customs procedures.
Strengthening Economic Security: The EPD will focus on enhanced cooperation on economic security, including addressing non-market policies of third countries, coordinating on investment security measures, export controls, and ICT vendor security. Both nations also reaffirmed government procurement commitments under the GPA and intend to discuss their implementation.
Other Key Areas: Discussions will also cover intellectual property rights, labor practices (including combating forced labor in supply chains), and environmental policies.
Officials emphasized that rules of origin will be established to ensure that only U.S. and UK firms benefit from the agreement and to prevent circumvention by non-participants. The framework also notes ongoing discussions towards a separate “transformative technology partnership” between the two nations.
The document outlining these general terms went into effect on May 8, 2025, with formal negotiations on the Economic Prosperity Deal set to begin immediately. Both governments have expressed a commitment to ensuring the EPD remains mutually beneficial and can be adjusted as needed through consultation.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
