Indiana The State of Play
Last week, the UK signed its first trade agreement with an individual US state – a Trade and Economic Development Memorandum of Understanding (MoU) between the UK and the US state of Indiana. The MoU provides a framework to remove barriers to trade and investment between the two parties.
DIT stats show that Indiana buys $1.4 billion worth of goods from the UK, and this agreement will b a springboard to grow further. Priority sectors for Indiana are advanced manufacturing, aerospace and aviation, energy and infrastructure.
The deal will strengthen academic and research ties; support professionals with provisions aligning with our levelling up agenda; pave the way for professional qualifications to be recognised on both sides of the Atlantic, and focus on green trade by both sides agreeing to accelerate the development of clean tech.
We welcome this agreement as the starting point to securing a positive relationship with the US. Since each state has its own body of law separate to federal law, its own individual culture, business landscape and consumer demand, state level deals have the potential to complement a future trade deal between the UK and the US as a whole.
For example California’s top imports are computer and electrical equipment and cars, where New York mostly imports manufactured commodities and apparel. Tailoring deals to the interests of the states will therefore be most useful to UK businesses looking for investment opportunities to expand to new markets.
The US is an important market for UK businesses. Our most recent data shows that a fifth of IoD exporters send goods and services to the US. This deal with Indiana is therefore a good stepping stone to securing a nationwide handshake, and furthering the UK’s trade policy internationally.