Today, the UK solidifies its economic ties with Texas as Business and Trade Secretary Kemi Badenoch hosts Texas Governor Greg Abbott in London to sign a significant trade pact.

This landmark agreement marks Texas as the second-largest US state economy, boasting a GDP of £1.9 trillion in 2022, surpassing that of Italy and Canada. The pact is poised to become the UK's most economically significant trade accord with a US state to date, elevating combined GDP figures to £5.3 trillion – a quarter of the US GDP.

The overarching goal of the pact is to streamline business operations between the UK and Texas, reducing barriers to trade, fostering investment growth, and stimulating commerce. Already, the UK ranks as Texas' 8th largest international goods export market, with bilateral trade in goods valued at £14.7 billion in 2023. Notably, exports to Texas encompass a diverse range of products, including nuclear equipment, aircraft, and pharmaceuticals.

This strategic collaboration targets sectors of mutual expertise, notably new energy solutions such as hydrogen and carbon capture, life sciences, and professional business services. By leveraging shared knowledge and resources, both parties aim to capitalize on emerging opportunities and drive innovation across key industries.

The signing of the pact follows closely on the heels of the UK-Florida Memorandum of Understanding (MoU), underscoring the UK's commitment to expanding trade partnerships with US states. With eight agreements now in place, encompassing a GDP exceeding £5.3 trillion, the UK continues to position itself as a pivotal player in transatlantic trade.

In the words of Business and Trade Secretary Kemi Badenoch, "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."

Governor Greg Abbott echoes this sentiment, emphasizing the critical role of the UK in Texas' economic landscape. "Strengthening the bond between Texas and the United Kingdom is crucial for our shared economies to prosper," he remarks. "By signing this Statement of Mutual Cooperation today, we will further promote economic growth on both sides of the Atlantic."

The signing of the pact is met with enthusiasm from UK businesses already operating in Texas. Richard Paxman, CEO of Paxman Coolers, expresses his excitement, highlighting Texas as a key market for their business. Similarly, William Crawford, Director of Concrete Canvas, welcomes the agreement as a catalyst for further growth and investment opportunities across the US.

As UK companies continue to capitalize on close UK-US trading ties, facilitated by existing MoUs, the signing of the UK-Texas pact signals a new chapter in transatlantic economic cooperation, poised to unlock mutual benefits and drive sustainable growth for years to come. Photo by Stuart Seeger, Wikimedia commons.