Policy paper

General terms for the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal (web accessible version)

Updated 9 May 2025

This document became operative on 8 May 2025.

1. 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 US-UK Economic Prosperity Deal (EPD).

A first of its kind, the US and UK expect the EPD to address 3 core objectives, based on fairness and reciprocity:

• to grow the quality and volume of mutually beneficial trade between the US and the UK, creating good, high-paying jobs and growth in both countries

• to remove barriers to make it easier for American and British businesses to operate, invest and trade in both countries

• 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 US and the UK 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 US and UK are immediately beginning negotiations of the EPD to develop and formalise the proposals made in this document. Once the initial proposals have been formalised and implemented, the US and UK 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 US and UK recognise that this document does not constitute a legally binding agreement.

2. Addressing tariffs

(a) Following a reasonable period of negotiation:

• (i) the UK intends to reduce its applied tariff rates on a preferential basis on a range of originating goods of the US in sectors of importance to the US

• (ii) the US intends to reduce its applied tariff rates on a preferential basis on a range of originating goods of the UK in sectors of importance to the UK

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 UK, the US will consider reducing its applied tariff rates for a UK territory or territories for whose international relations the UK is responsible on a preferential basis.

(b) US beef exports to the UK are currently subject to a 20% tariff within a quota of 1,000 metric tons (tonnes) (mt). The UK will remove the 20% tariff. Additionally, the UK will create a preferential duty-free quota of 13,000 mt for US beef. In return, the US will reallocate to the UK 13,000 mt of its existing ‘other countries’ tariff-rate quota (TRQ) for beef. Additionally, the UK will offer a preferential duty-free TRQ of 1.4 billion litres for US ethanol.

(c) The US 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 US Section 232 investigations.

(i) The US will create a quota of 100,000 vehicles for UK automotive imports at a 10% tariff rate, and an accompanying arrangement for attendant auto parts for such autos.

(ii) The UK will work to promptly meet US requirements on the security of the supply chains of steel and aluminium products intended for export to the US and on the nature of ownership of relevant production facilities. Understanding the UK will meet these requirements, the US will promptly construct a quota at most favoured nation (MFN) rates for UK steel and aluminium and certain derivative steel and aluminium products.

(iii) Contingent on the findings of the US Section 232 investigation on pharmaceuticals and pharmaceutical ingredients, and consistent with the UK’s compliance with the supply chains security requirements described in subparagraph (ii), the US and the UK intend to promptly negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients. The UK confirms that it will endeavour to improve the overall environment for pharmaceutical companies operating in the UK.

(iv) In addition to products already addressed in this document, the US and the UK 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 UK ensuring the security of supply chains, using appropriate measures, of products intended for export to the US and on the findings of related US investigations of, or other tariff measures related to, such sectors.

(d) To ensure US and UK firms can benefit from these changes in practice, both countries intend to apply rules of origin that maximise bilateral trade and prevent non-participants from using our bilateral arrangement to circumvent tariffs. The US affirms that it intends to take into consideration during the negotiations of the EPD the UK’s request that the US continues to work to lower tariffs on UK goods imposed by US executive authority as well as those subject to congressional approval.

3. Addressing non-tariff barriers

(a) The UK and the US 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 UK and the US 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 UK and the US 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 UK and the US each confirms its intent to accord to conformity assessment bodies of the other treatment no less favourable 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 recognising 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 UK and the US intend to discuss the principles and criteria used in order to recognise a standard as an international standard. The UK and the US 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 recognised international principles.

4. 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 digitalised procedures for the movement of goods between our countries.

5. 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 UK’s new National Security Unit for Procurement and the UK’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 anti-dumping, countervailing duties, safeguards, for example, which undermine economic security.

6. 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 defence preparedness, leveraging government policies, licenses, and programs and private-sector participation to facilitate such transactions.

7. Other matters

(a) Both countries confirm that they intend to discuss high-standard commitments related to intellectual property rights protection and enforcement, labour practices (including addressing forced labour in supply chains), and environmental policies and practices.

(b) The UK will consider the interests of those UK territories for whose international relations it is responsible.

(c) The UK and the US recognise 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 UK and the US 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 US or the UK may terminate this arrangement by giving written notice to the other. The UK and the US further plan to discuss procedures for review and termination as part of the negotiations of the EPD.