Midlands leaders welcome UK trade pact with Texas

Midlands business leaders have welcomed a new pact to boost trade and investment between the UK and Texas as “a win for transatlantic businesses.”

Texas Governor Greg Abbott signed the “statement of mutual co-operation” in London yesterday alongside UK Business and Trade Secretary Kemi Badenoch. 

The UK now has agreements in place with eight US states, including Florida, while talks are ongoing with the likes of California, Colorado and Illinois.

Although these agreements do not lower tariffs, as a free trade deal would, they can provide some help for businesses through recognising UK qualifications or addressing state-level regulatory issues.

James Tait, president of the Greater Birmingham Transatlantic Chamber of Commerce, said: “Texas has the second largest economy in the US, so this new agreement is an undoubted win for transatlantic businesses and a positive step in the UK’s state level MoU programme.

“With shared interests in sectors including energy solutions, life sciences and professional services, Texas offers great potential for businesses here in the West Midlands and the UK as a whole.

“With a formal free trade agreement yet to materialise, we welcome state level frameworks such as these to help foster greater collaboration between UK and US firms.”

Jamie Joyce, global CEO of Midlands-based hot-holding display manufacturer Flexeserve, who last year opened a new American headquarters in Texas, added: “As a UK business that exports to the U.S., with sales expected to grow more than 75 per cent this year, we welcome initiatives that boost trade cooperation and remove barriers for British companies expanding into America.

“Seeing how Texas aligned with our long-term growth strategy, we selected it as the base for our U.S. HQ and Culinary Support Center, which opened in Southlake, Dallas last August.

“Yesterday’s MoU announcement not only signals the groundbreaking opportunities to drive trade and grow investment between the UK and Texas, but also reminds us of the invaluable support available for British businesses to ensure the success of their transatlantic growth.”

According to the Department for Business and Trade (DBT), the UK is Texas’ eighth largest international goods export market, with total trade in goods already worth £14.7 billion in 2023. 

The top products being exported to Texas include nuclear equipment, aircraft, and pharmaceutical products. 

DBT said the new agreement is targeted at sectors where the UK and Texas have shared expertise such as new energy solutions - including hydrogen and carbon capture, utilisation, and storage, life sciences, and professional business services. 

Business and Trade Secretary Kemi Badenoch said: “The 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: “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.”

Part of the Greater Birmingham Chambers of Commerce group and the British-American Business Network, the Greater Birmingham Transtalantic Chamber of Commerce is the region's only trade body dedicated to connecting Midlands firms with opportunities in North America - find out more. 

Pictured: James Tait and Jamie Joyce