UK Signs Trade Pact With Florida

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Facts

  • UK Business and Trade Secretary Kemi Badenoch and Florida Gov. Ron DeSantis signed a new trade pact on Tuesday in a move that Badenoch said will allow 'huge opportunities' within Britain's 'rapidly expanding tech sector.'1
  • The UK has stated that the deal will focus on fintech, artificial intelligence, and legal services. While state-level trade deals cannot reduce federal tariffs, Florida holds the US' fourth largest GDP — approximately equal to Spain.2
  • Florida is the seventh US state to sign a 'memorandum of understanding' with the UK. Badenoch flew to Jacksonville to finalize the deal with DeSantis, who stated that the agreement would 'strengthen economic partnership' with the UK.3
  • Trade between the UK and Florida is already worth approximately $6.14B, while the UK holds similar agreements with six other states – Indiana, North Carolina, South Carolina, Oklahoma, Utah, and Washington.4
  • UK companies have created over 70K jobs in Florida, with total holdings of $18B. The UK remains in negotiations with Texas, California, Colorado, and Illinois, with Badenoch set to meet California Gov. Gavin Newsom On Wednesday.1
  • In June, US Pres. Joe Biden and UK PM Rishi Sunak announced an 'Atlantic Declaration' — however, a post-Brexit Free Trade Agreement hasn't yet been agreed. Badenoch has claimed recent conversations with US trade representative Katherine Tai were 'very, very good.'5

Sources: 1Reuters, 2Business matters, 3The Guardian, 4The Straits Times and 5MSN.

Narratives

  • Right narrative, as provided by Express. Through a trade deal with Florida, Badenoch and the UK has secured another Brexit win. Targeting high-potential sectors within an incredibly wealthy part of the US, the UK's focus on individual state agreements as it continues to search for a broader deal with the US federal government continues to win new opportunities for the British economy.
  • Left narrative, as provided by The Guardian. The UK government's promised US trade deal within three years of 2019 hasn't materialized, and state deals cannot provide the tariff reductions that the UK so desperately desires. While a deal with Florida is positive, there is slow progress in achieving the real agreement that Britain is searching for across the pond.

Predictions