President Donald J. Trump and Prime Minister Keir Starmer announced a historic trade deal that gives American companies unprecedented access to the UK market and strengthens US national security.
The United States accepted UK measures to address overcapacity in steel and aluminum production and agreed on alternative arrangements for Section 232 tariffs. This step will strengthen the cooperation of both countries in steel and aluminum trade and is considered the beginning of a new era.
The measures taken by the UK in the steel and aluminum sector aim to safely regulate imports to the US. The agreement is aimed at more efficient cooperation in the face of challenges in steel and aluminum production in both countries.
Trade opportunities and investment security
The trade agreement will create a USD 5 billion opportunity for the US and the UK. This opportunity will be especially important for US farmers, producers and the agricultural sector. There are also great opportunities for exports of ethanol and other agricultural products from the UK. In addition, preferential access to high-quality UK aerospace components will boost the competitiveness of US aerospace manufacturers.
The agreement will also enhance investment security between the two countries. The US and UK agreed to cooperate to ensure the effective use of investment security measures and supplier security through export controls.
Digital commerce and intellectual property
The agreement also covers a significant part of digital trade. Both countries will continue negotiations to remove barriers to digital trade and raise standards. It is also expected to adopt a common approach to ensure compliance with high standards in the areas of intellectual property, labor and environment.
Government procurement agreement and secure supply chain
The agreement aims to close gaps in the UK's government procurement market and provide equal access to it. The US and the UK will offer each other preferential supply access without creating unfair competition. They will also cooperate on establishing secure supply chains for pharmaceutical products.
The Digital Services Tax (DST) issue
The United States is disappointed that the UK has not agreed to fully address the Digital Services Tax (DST). The US has stated that this tax is unfair and discriminatory and demanded its immediate abolition.
Next steps and regulations
Both sides will continue negotiations on many issues, including digital trade, intellectual property, labor, environment and automotive standards, while finalizing the details of the agreement. This will strengthen trade relations and further consolidate economic security in the long term.
This agreement will usher in a new era in steel and aluminum trade between the two countries and create economic opportunities for both countries.
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