The United Kingdom and the state of Utah in the United States are strengthening their trade ties with the signing of a new Memorandum of Understanding (MoU). This MoU, the fifth of its kind between the UK and a US state, aims to enhance the trading relationship, promote export opportunities for UK businesses, attract investments, and generate job growth. The agreement signifies a significant milestone in the UK’s economic engagement with Utah and underscores the government’s commitment to bolstering the economy.
The Importance of the MoU
The new MoU between the UK and Utah seeks to deepen economic collaboration and explore the untapped potential for bilateral trade. By establishing a framework for cooperation, this agreement will pave the way for increased business opportunities, particularly in the fintech sector, where the UK holds a global leadership position. The UK has already entered into MoUs with other US states, including Indiana, North Carolina, South Carolina, and Oklahoma, facilitating commercial partnerships and encouraging business development. Moreover, discussions are underway with states such as Texas, California, Colorado, and Florida to strengthen trade relations.
Boosting UK-Utah Trade Relations
With over 10,000 people already employed by UK companies in Utah, the MoU aims to further enhance trade between the two regions. In 2022, UK goods exports to Utah amounted to £219 million, and Utah’s exports to the UK totaled an impressive £5.7 billion, making the UK Utah’s top international goods export market. This mutually beneficial trade relationship has contributed to the creation of more than 38,000 jobs in Utah, providing a strong foundation for continued economic growth.
Fostering Innovation and Collaboration
The Utah MoU is the first agreement of its kind between the UK and a US state that explicitly prioritizes the fintech sector. Leveraging the UK’s position as a global fintech hub, this collaboration aims to foster innovation, knowledge exchange, and business development within the fintech industry. Additionally, the MoU encourages cooperation in the aerospace sector, capitalizing on the UK’s expertise in areas such as small satellites and the presence of a robust aerospace industry employing over 100,000 people.
Promoting Supply Chain Resilience and Critical Minerals
The MoU also focuses on enhancing supply chain resilience, including critical minerals. Utah’s significant role as a major source of critical minerals for the US market aligns with the UK’s critical minerals strategy. This collaboration aims to secure the supply of critical minerals, supporting both nations’ industries and ensuring the availability of essential resources.
Advancing Life Sciences and Market Access
Building on the UK’s thriving life sciences industry, which generated £94 billion in turnover in 2021, the MoU promotes collaboration and knowledge-sharing in this sector. By fostering partnerships, research, and development opportunities, both the UK and Utah can drive advancements in life sciences and contribute to improving global healthcare.
Furthermore, the MoU aims to expand market access by facilitating government procurement and recognizing professional qualifications. This initiative allows British businesses to provide services in Utah and vice versa, promoting service exports and strengthening bilateral economic ties.
Statements from Key Figures
International Trade Minister Nigel Huddleston expressed enthusiasm for the MoU, emphasizing the opportunities it presents for British businesses, particularly in the fintech sector. Huddleston highlighted the positive impact of existing UK-US state agreements, which have already supported UK businesses in expanding their commercial links across the Atlantic.
Utah Governor Spencer Cox welcomed the MoU, highlighting the excellent working relationship between Utah and the UK. He emphasized that the agreement would lead to increased collaboration, encompassing best practices, government-led missions, private-sector partnerships, academic cooperation, and capital investment.
Source: Gov[Dot]UK
