News

Progress on the UK’s exit from, and future relationship with, the European Union

Draft Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union; Joint Statement and outline of the Political Declaration on the future relationship between the United Kingdom and the European Union, as agreed at negotiators' level.

November 14, 2018 Draft Agreement

November 14, 2018 Outline Policical Declaration of the Future Relationship

November 14, 2018 Joint Statement

Details

The draft Withdrawal Agreement sets out the terms of the UK’s smooth and orderly exit from the European Union, including a Protocol on Northern Ireland. It reflects agreement in principle between the UK and EU negotiating teams on the full legal text.

Ahead of signature, this draft will be subject to a further review by UK and EU lawyers to ensure consistency as it is translated into all EU Member State languages. This may mean that legal terminology and article numbers will change. The Government intends to lay a final version of the agreement before Parliament once it is finalised.

The outline of the Political Declaration on the future relationship sets out progress on the scope of the framework for the future relationship. Negotiations are ongoing to finalise the Political Declaration.

 

Transatlantic Business Leaders Welcome Prime Minister Theresa May’s Commitment to a Period of Implementation After Brexit

LONDON, Friday 22 September
BritishAmerican Business (BAB) welcomes Prime Minister Theresa May’s speech in Florence, stating, however, that on Brexit there is still a long way to go for businesses to feel the clarity they need.

Speaking on the Prime Minister’s remarks, Wendy Mendenhall, BAB Global Executive in Charge, said:
“The transatlantic business community welcomed today’s speech by the UK Prime Minister in Florence, Italy, which emphasized the UK’s commitment to address global challenges and its willingness to build on the foundations the UK laid within a successful EU”.

“In particular, our business community welcomes the announcement that the UK will seek to establish a period of implementation after Brexit. Minimizing disruption to business through an agreed transition period, therefore avoiding a ‘cliff-edge’ scenario, was and continues to be crucial to our community, which includes major American investors and leading British firms”.

“Our community will continue to advocate for an outcome that best serves both the UK, US, and the EU economies, its citizens and our businesses; many who operate daily across borders”.

“As businesses continue to assess the impact of Brexit to the UK’s attractiveness as a destination for business and investment, it is crucial that both parties continue to engage in a constructive and on-going dialogue with the business community and deliver the best possible Brexit outcome available.

BABA Welcomes Joint Release of Investment Working Group

British-American Business Association, Washington, DC, welcomed the joint release by the Secretary of State, The Rt Hon Dr Liam Fox MP, and the US Trade Representative, Robert Lighthizer, at the culmination of the first plenary session of the UK-US Trade and Investment Working Group which took place in Washington DC this week.

BABA, Washington, as part of the wider BABC network, fully supports the Working Group’s objective to explore options of future economic integration between the UK and US. As the UK prepares to leave the EU, making it a priority to give certainty and confidence to business and minimising disruption through a focus on providing commercial continuity for US and UK businesses is highly welcome by our membership.

We as a transatlantic business community stand ready to support US and UK Governments in this important process to a mutual benefit of our great nations.

BABA Policy Statement on UK Position Paper on Customs Arrangements

The British-American Business Association welcomes the UK Government’s proposals for a future customs relationship with the EU as well as its aim to explore a model for an interim period that offers frictionless trade across the borders and helps avoid a “cliff edge scenario”.

Minimizing any disruption to business through an agreed transition period and providing clarity on the future trading relationship with the EU as early as possible have been a key ask by the transatlantic business community, which includes major American investors and leading British firms.

Both options presented, however, are still likely to increase the burden for businesses who trade between the UK and the EU. We therefore continue to advocate for a model that is as close as possible to existing arrangements. This will be essential in maintaining the United Kingdom’s status as a desired trade and investment partner.

Our businesses are looking forward to continuing its strong engagement with the UK Government on achieving this aim.

New Trade Report Highlights UK Trade Links with All 435 US Congressional Districts

WASHINGTON, DC - On Tuesday 25 July, alongside Members of Congress and the business community, the UK’s Secretary of State for International Trade, the Right Honourable Liam Fox MP launched the UK Trade and Investment Highlights in the 435 US Congressional Districts report.

The report released today outlines the economic benefits of trade and investment between the United Kingdom and each of the 435 US Congressional Districts.

Please find a link to the report here.

UK’s Secretary of State for International Trade and President of the Board of Trade, The Right Honourable Dr Liam Fox MP, said:

“It’s fantastic to be back in Washington for the first meeting of the UK-US working group with Ambassador Robert Lighthizer and launch this new report which highlights the strong trading and investment relationship between the United Kingdom and each of the 435 Congressional Districts in the United States.

“The group will work to provide certainty for businesses as the UK leaves the EU and look to expand future trading links with the US. The EU itself estimates that 90 per cent of global growth in the next decade will come from outside Europe, and I believe as the head of an international economic department that this is an exciting opportunity for the UK to work even more closely with our largest single trading partner - the US.”

The report highlights that in the US 707,100 jobs were supported by exports to the UK in 2015, growing prosperity on both sides of the pond. This report complements a previous study that showed the strong trading relationship between each state and the UK, available here.

Top Figures from the report include:

  • The UK is the top export market for 15 US Congressional Districts
  • The UK is among the top 3 export markets for 129 US Congressional Districts (30 percent)
  • The UK is among the top 5 export markets for 302 of the US Congressional Districts (69 percent)

Goods or Services Export Values:

  • 168 US Congressional Districts exported $100 million or more in goods to the UK in 2015, including 4 Districts that exported over $1 billion (39 percent)
  • 201 US Congressional Districts exported $100 million or more in services to the UK in 2015, including 4 Districts that exported over $1 billion (46 percent)

Supporting Jobs:

  • At least 1,000 jobs were supported by exports to the UK from 291 US Congressional Districts in 2015 (67 percent), with 5,000 or more jobs supported by exports to the UK from 13 US Congressional Districts

Trade between the UK and US is already worth more than $200 billion a year.  The US is the single biggest source of inward investment into the UK, and together we invest $1 trillion in each other’s economies.

As of April this year, corporation tax has fallen to 19%, the lowest rate in the G20. In April of 2019, it will fall again to 18%, before a further reduction to 17% in 2020. A Price Waterhouse Coopers report, published in February, states that Britain will have the fastest growing economy out of the G7 nations until 2050 and the UK economy is expected to outstrip Germany, France and Italy for the next 33 years - notching up annual average growth of 1.9%. The UK is a great place to do business, learn more from the Department for International Trade.

Notes to Editor:

The UK Trade and Investment Highlights in the 435 US Congressional Districts report outlines the following topics and more: 

  • The number of US jobs supported by each District’s exports to the UK
  • The goods exported to the UK by each District
  • The services exported to the UK by each District
  • The estimated number of UK subsidiaries in each District
  • The top five goods and services exported to the UK and UK-affiliated companies located in each District

Methodology

This report provides a breakdown of each state’s goods and services exports to the United Kingdom, estimated U.S. jobs tied to those exports, and information on foreign direct investment (FDI) in each state based on data supplied by The Trade Partnership, an economic research firm in Washington, DC.

State export data come from The Trade Partnership’s CDxports database.  The Trade Partnership derives goods exports based primarily on data from the U.S. Census Bureau, the U.S. Department of Agriculture (USDA), and Moody’s Analytics. Goods exports are classified according to the U.S. government’s North American Industry Classification (NAICS) system. The Trade Partnership derives services exports primarily from data from the U.S. Bureau of Economic Analysis (BEA) and Moody’s Analytics. Services exports are classified according to the BEA categories. Jobs tied to exports are based on the above sources along with data from the U.S. Department of Labor. A detailed methodology for the CDxports database is available at http://tradepartnership.com/data/cdxports-and-cdxjobs/.

FDI-related information comes from the Uniworld Online database and the U.S. Bureau of Economic Analysis (BEA). Data on the number of subsidiaries of U.K.-based firms, along with examples of specific companies operating in the state, are derived from the Uniworld database. Estimates of employment by UK subsidiaries come from the BEA.