Despite Trump’s tariffs sending markets into freefall, Brexit Britain has scored another trade pact win with the United States, but it's one that Keir Starmer doesn’t seem to want to shout about, analysis by Facts4EU has shown.
In January, Britain ‘quietly’ signed its ninth trade pact with a US state, Colorado, a state whose economy alone is larger than that of eight EU countries combined.
Colorado has a larger economy than the GDP of eight EU countries combined
Facts4EU
The deal was sealed in Denver without fanfare and, notably, without the presence of a UK trade minister, despite earlier Tory-led negotiations being fronted by trade minister Nigel Huddleston.
Instead, the UK was represented by the Consul General in Chicago. The absence of any senior government figure has raised questions about the Labour government’s commitment to expanding post-Brexit trade opportunities beyond the EU.
Colorado Governor Jared Polis welcomed the agreement, calling it a boost for investment, jobs, and long-term cooperation.
“Solidifying and strengthening our long-standing relationship with the United Kingdom helps create more pathways for investments into Colorado businesses, expands good jobs in Colorado’s key economic sectors, and establishes a strong and lasting trade partnership with our friends in the U.K,” said Polis.
The UK’s representative, Consul General Alan Hyde, described it as “a great step forward” in UK-Colorado ties, unlocking investment for businesses.
Despite the potential benefits, Prime Minister Sir Keir Starmer’s government has remained tight-lipped about the deal – and has not announced any new state-level negotiations since taking office, which were becoming a hallmark of the previous Tory government.
The Colorado agreement marks the ninth such deal signed between the UK and individual US states.
Together, the nine states account for a combined GDP of nearly $7.9 trillion – more than the economies of 23 EU countries combined, based on World Bank figures.
EU economy VS economy of the nine states UK has a trade pact with
Facts4EU
While not full free trade agreements, these pacts focus on cutting red tape, recognising professional standards, and opening access to services – a crucial area for the UK as our economy is over 80% service-based.
The nine states include Indiana, North Carolina, South Carolina, Oklahoma, Utah, Washington, Florida, Texas and now Colorado.
Sir John Redwood, former Conservative Secretary of State, said: “Great to see the UK using its Brexit freedoms and making trade deals with eight US states with more to come.
“The US is our largest trading partner and we have a much better balance between exports and imports than with the EU. Who said none of this would be possible when we left the EU?"
It comes after President Trump imposed sweeping tariffs, shocking global markets and sparking major concerns in Britain for the steel industry, car manufacturers and whiskey companies.
But Trump’s tariffs apply mainly to goods – not services – and the UK remains the world’s second-largest exporter of services, namely financial.
Deals like the one with Colorado aim to promote UK services, encourage investment, and forge deeper economic links at a state level, all things Keir Starmer appears to be pursuing with the EU.
The Labour leader recently agreed a youth movement scheme for example, designed to allow young people to live and work abroad, deepening connections and supporting university towns.
And while Labour continues to push for closer ties with the EU in Starmer’s ‘reset of relations’, critics argue the government is underplaying tangible gains made from Brexit.
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Global stock markets plunged AGAIN as US futures fall overnight while Donald Trump remains defiant on tariffs that are 'like medicine'
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Today, data for trade between the US and UK in 2024 was released. It put the value of the two nations' trade at £294.1billion, down 2.3% or £6.8 billion on last year.
Despite the dip, the US remained the UK’s largest trading partner, accounting for 17.2% of total UK trade.
UK exports to United States amounted to £182.6 billion, with £60.4 billion (33.7%) coming in the form of goods and £118.9 billion (66.3%) in services.
Imports from the US totalled £111.5 billion, with £57.9 billion (51.7%) coming in the form of goods and £54.2 billion (48.3%) in services.
It comes after global markets plunged on Monday, with the FTSE 100 dropping by 241.88 points, a fall of three per cent, before sliding further to a 6.1 per cent loss within minutes of opening.
Europe’s STOXX 600 fell 5.8 per cent, while overnight in the US, stock futures tumbled - the Dow down over 1,000 points, the S&P 500 falling 3.34 per cent, and the Nasdaq dropping more than four per cent.
Despite the turmoil, Donald Trump has stood firm on his sweeping tariffs, telling reporters: “Sometimes you have to take medicine to fix something.”
