U.S.-UK Economic Prosperity Deal (EPD)
General Terms for the United
States of America and the United Kingdom of Great Britain and Northern Ireland
Economic Prosperity Deal
[Source: The White House/May
8, 2025
·
U.S. beef
exports to the United Kingdom are currently subject to a 20 percent tariff
within a quota of 1,000 metric tons (mt). The United
Kingdom will remove the 20 percent tariff. Additionally, the United Kingdom
will create a preferential duty-free quota of 13,000 mt
for U.S. beef. In return, the United States will reallocate to the United
Kingdom 13,000 mt of its existing “Other Countries”
tariff rate quota (TRQ) for beef. Additionally, the United Kingdom will offer a
preferential duty-free TRQ of 1.4 billion liters for
U.S. ethanol.
·
United
States intends to provide certain key UK imports with modified reciprocal
tariff treatment
·
The
United States will create a quota of 100,000 vehicles for UK automotive imports
at a 10 percent tariff rate, and an accompanying arrangement for attendant auto
parts for such autos.
·
U.S.
requirements on the security of the supply chains of steel and aluminum products intended for export to the United States
and on the nature of ownership of relevant production facilities.
·
United
States will promptly construct a quota at most favored
nation (MFN) rates for UK steel and aluminum and
certain derivative steel and aluminum products.
·
Contingent
on the findings of the U.S. Section 232 investigation on pharmaceuticals and
pharmaceutical ingredients, and consistent with the United Kingdom’s compliance
with the supply chains security requirements described in subparagraph (ii),
the United States and the United Kingdom intend to promptly negotiate
significantly preferential treatment outcomes on pharmaceuticals and
pharmaceutical ingredients.
·
The
United States and the United Kingdom intend to adopt a structured, negotiated
approach to other sectors that may be subject to Section 232 investigations or
other tariff measures with a view to a significantly preferential outcome.
·
Apply
rules of origin that maximize bilateral trade and prevent non-participants from
using our bilateral arrangement to circumvent tariffs.
·
Strengthen
bilateral agricultural trade. The United Kingdom and the United States affirm
that imported food and agricultural goods must comply with the importing
country’s sanitary and phytosanitary (SPS) standards and other mutually agreed
standards.
·
The
United Kingdom and the United States each confirms its intent to accord to
conformity assessment bodies of the other treatment no less favorable
than that it accords to conformity assessment bodies located in its own
territory.
·
Both
countries intend to build on an existing set of Mutual Recognition Agreements
(MRAs) by negotiating additional agreements
·
United
Kingdom and United States intend to discuss the principles and criteria used in
order to recognize a standard as an international standard.
·
To agree
which of the other’s relevant domiciled standards development organizations
(SDOs) currently meet recognized international principles.
·
Negotiate
an ambitious set of digital trade provisions that will include within its scope
services, including financial services.
·
Negotiate
provisions on paperless trade, pre-arrival processing, and digitalized
procedures for the movement of goods between our countries.
·
Investment
security measures, export controls, and ICT vendor security, building on the
current levels of close alignment on trade and investment security measures.
·
United
Kingdom’s new National Security Unit for Procurement and the United Kingdom’s
new powers under the Procurement Act 2023, which provides that non-“treaty states” are not guaranteed non-discriminatory
treatment in procurement.
·
Illegal
transshipment of goods from countries subject to antidumping, countervailing
duties, safeguards, etc., which undermine economic security.
·
High-standard
commitments related to intellectual property rights protection and enforcement,
labor practices (including addressing forced labor in supply chains), and environmental policies and
practices.
Context and Objectives
President
Donald J. Trump and Prime Minister Sir Keir Starmer committed to deliver shared
prosperity for American and British citizens alike. Our governments have a
unique opportunity to enhance our economic partnership through the U.S.-UK
Economic Prosperity Deal (EPD).
A first
of its kind, the United States and the United Kingdom expect the EPD to address
three core objectives, based on fairness and reciprocity:
1.
To grow
the quality and volume of mutually beneficial trade between the United States
and the United Kingdom, creating good, high-paying jobs and growth in both
countries;
2.
To remove
barriers to make it easier for American and British businesses to operate,
invest and trade in both countries; and
3.
To ensure
that the Special Relationship is rooted in an enduring economic partnership
that is fair, reciprocal, future-facing, and built on a shared vision of the
challenges that face our economies.
This
document serves to define the general terms for the EPD that set forth the
shared desires of the United States and the United Kingdom to make bilateral
trade fairer, easier, and more substantial. Alongside this document covering
our trading relationship, we are continuing discussions toward a transformative
technology partnership between our countries.
The
United States and United Kingdom are immediately beginning negotiations of the
EPD to develop and formalize the proposals made in this document. Once the
initial proposals have been formalized and implemented, the United States and
United Kingdom understand that the EPD can further be expanded over time to
cover additional areas. Each country intends to continue to improve market
access under the EPD.
Both the
United States and the United Kingdom recognize that this document does not
constitute a legally binding agreement.
1.
Addressing
Tariffs
(a)
Following a reasonable period of negotiation: (i) the
United Kingdom intends to reduce its applied tariff rates on a preferential
basis on a range of originating goods of the United States in sectors of
importance to the United States; and (ii) the United States intends to reduce
its applied tariff rates on a preferential basis on a range of originating
goods of the United Kingdom in sectors of importance to the United Kingdom. The
countries intend to coordinate the timing of their respective tariff reductions
to be as soon as practicable, taking into consideration their respective
domestic processes. On request of the United Kingdom, the United States will
consider reducing its applied tariff rates for a UK territory or territories
for whose international relations the United Kingdom is responsible on a
preferential basis.
(b) U.S.
beef exports to the United Kingdom are currently subject to a 20 percent tariff
within a quota of 1,000 metric tons (mt). The United
Kingdom will remove the 20 percent tariff. Additionally, the United Kingdom
will create a preferential duty-free quota of 13,000 mt
for U.S. beef. In return, the United States will reallocate to the United
Kingdom 13,000 mt of its existing “Other Countries”
tariff rate quota (TRQ) for beef. Additionally, the United Kingdom will offer a
preferential duty-free TRQ of 1.4 billion liters for
U.S. ethanol.
(c) The
United States intends to provide certain key UK imports with modified
reciprocal tariff treatment, based on our balanced trading relationship and
shared national security priorities. Any such modifications will be consistent
with those shared national security priorities, including priorities identified
in future U.S. Section 232 investigations.
(i) The United States will create a quota of 100,000
vehicles for UK automotive imports at a 10 percent tariff rate, and an
accompanying arrangement for attendant auto parts for such autos.
(ii) The
United Kingdom will work to promptly meet U.S. requirements on the security of
the supply chains of steel and aluminum products
intended for export to the United States and on the nature of ownership of
relevant production facilities. Understanding the United Kingdom will meet
these requirements, the United States will promptly construct a quota at most favored nation (MFN) rates for UK steel and aluminum and certain derivative steel and aluminum products.
(iii)
Contingent on the findings of the U.S. Section 232 investigation on
pharmaceuticals and pharmaceutical ingredients, and consistent with the United
Kingdom’s compliance with the supply chains security requirements described in
subparagraph (ii), the United States and the United Kingdom intend to promptly
negotiate significantly preferential treatment outcomes on pharmaceuticals and
pharmaceutical ingredients. The United Kingdom confirms that it will endeavor to improve the overall environment for pharmaceutical
companies operating in the United Kingdom.
(iv) In
addition to products already addressed in this document, the United States and
the United Kingdom intend to adopt a structured, negotiated approach to other sectors
that may be subject to Section 232 investigations or other tariff measures with
a view to a significantly preferential outcome. Any such approach is contingent
on the United Kingdom ensuring the security of supply chains, using appropriate
measures, of products intended for export to the United States and on the
findings of related U.S. investigations of, or other tariff measures related
to, such sectors.
(d) To
ensure U.S. and UK firms can benefit from these changes in practice, both
countries intend to apply rules of origin that maximize bilateral trade and
prevent non-participants from using our bilateral arrangement to circumvent
tariffs. The United States affirms that it intends to take into consideration
during the negotiations of the EPD the United Kingdom’s request that the United
States continues to work to lower tariffs on UK goods imposed by U.S. executive
authority as well as those subject to Congressional approval.
2.
Addressing
Non-Tariff Barriers
(a) The
United Kingdom and the United States plan to work constructively in an effort
to enhance agricultural market access. Further, both countries positively
support future discussions to strengthen bilateral agricultural trade. The
United Kingdom and the United States affirm that imported food and agricultural
goods must comply with the importing country’s sanitary and phytosanitary (SPS)
standards and other mutually agreed standards. The United Kingdom and the
United States commit to working together to improve market access for
agricultural products, to highlight concerns, and to increase agricultural
cooperation on areas such as certain export verification programs to facilitate
greater trade, and more formal bilateral engagement through international
standard setting bodies.
(b) The
United Kingdom and the United States each confirms its intent to accord to
conformity assessment bodies of the other treatment no less favorable
than that it accords to conformity assessment bodies located in its own
territory. Treatment under this paragraph includes procedures, criteria, fees,
and other conditions relating to accrediting, approving, licensing, or
otherwise recognizing conformity assessment bodies.
(c) Both
countries intend to build on an existing set of Mutual Recognition Agreements
(MRAs) by negotiating additional agreements, as appropriate, across certain
industrial goods and advance toward an agreement on services domestic
regulation.
(d) The
United Kingdom and United States intend to discuss the principles and criteria
used in order to recognize a standard as an international standard. The United
Kingdom and the United States will further commit to discuss respective
applicable standards for mutually agreed sectors of interest and, within those
specified sectors, to agree which of the other’s relevant domiciled standards
development organizations (SDOs) currently meet recognized international
principles.
3.
Increasing
Digital Trade
(a) Both
countries confirm that they will negotiate an ambitious set of digital trade
provisions that will include within its scope services, including financial
services.
(b) Both
countries confirm that they will negotiate provisions on paperless trade,
pre-arrival processing, and digitalized procedures for the movement of goods
between our countries.
4.
Strengthening
Alignment and Collaboration on Economic Security
(a) Both
countries intend to strengthen cooperation on economic security, including by
coordinating to address non-market policies of third countries.
(b) Both
countries intend to cooperate on the effective use of investment security
measures, export controls, and ICT vendor security, building on the current
levels of close alignment on trade and investment security measures.
(c) In
order to ensure more competitive, reciprocal, and secure access to our
procurement markets, both countries reaffirm their procurement commitments
under the Agreement on Government Procurement (GPA) and their respective free
trade agreements, and intend to discuss the implementation of our respective
procurement commitments, including through the United Kingdom’s new National
Security Unit for Procurement and the United Kingdom’s new powers under the
Procurement Act 2023, which provides that non-“treaty states” are not
guaranteed non-discriminatory treatment in procurement.
(d) Both
countries confirm that they will negotiate as part of the EPD provisions on
duty evasion customs cooperation to combat evasion schemes and the illegal
transshipment of goods from countries subject to antidumping, countervailing
duties, safeguards, etc., which undermine economic security.
5.
Commercial
Considerations and Opportunities
Both
countries commit to continuing to identify mutually beneficial goods, services,
investment opportunities and commercial transactions that serve to increase
economic integration in critical industries and defense
preparedness, leveraging government policies, licenses, and programs and
private-sector participation to facilitate such transactions.
6.
Other
Matters
(a) Both
countries confirm that they intend to discuss high-standard commitments related
to intellectual property rights protection and enforcement, labor
practices (including addressing forced labor in
supply chains), and environmental policies and practices.
(b) The
United Kingdom will consider the interests of those UK territories for whose
international relations it is responsible.
(c) The
United Kingdom and the United States recognize that the purpose of this
arrangement is to deepen our trade relationship based on mutual trust and a
shared commitment to fair and reciprocal trade. On request of either country,
the United Kingdom and the United States will consult with a view to
considering any changes that may need to be made to this arrangement to ensure
that it remains mutually beneficial.
(d) The
United States or the United Kingdom may terminate this arrangement by giving
written notice to the other. The United Kingdom and the United States further
plan to discuss procedures for review and termination as part of the
negotiations of the EPD.
This
document becomes operative on May 8, 2025.