UK signs sixth US state deal with Washington

The UK and the US state of Washington have signed a new Memorandum of Understanding (MoU) to boost trade and investment.

Washington State is home to major US business including Amazon, Starbucks, Microsoft and Boeing, and has a GDP roughly equivalent to Poland.

The MoU is the sixth delivered as part of the UK’s state-level strategy to boost trade with the US.

According to the Department for Business and Trade, the combined GDP of states the UK has MoUs with now totals £2.2 trillion.

Minister for Industry and Economic Security Nusrat Ghani signed the pact in Seattle alongside Washington State Governor Jay Inslee.

The UK has signed MoUs with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and now Washington. Collectively these states imported £5.1 billion of UK goods in 2022.

The Government is actively engaging with further states including Florida, Texas, California, Colorado, and Illinois.

The DBT says serospace will be a priority sector under the MoU, which seeks to facilitate more deals between UK and Washington State.

Boeing has spent over £12 billion in the UK supply chain since 2015. Its most recent investment, a £80 million composite research facility in Sheffield, will establish new long-term partnerships and supply chains.

Mr Ghani said: “Our pact with the state of Washington is a win for the UK, opening a door for our businesses to trade more openly and unlock new opportunities in key sectors.

“Each US state is a massive global market in its own right, and many have economies larger than the GDP of whole countries. By notching up our sixth such deal we’ve surpassed the £2 trillion mark for combined GDP of states who’ve done a deal with the UK, with many more in our sights.

“This particular deal will be fantastic for our aerospace industry through investor intros, trade missions, and increasing access to procurement markets.”

Washington State Governor Jay Inslee said: “Washington is a leader in sustainable aerospace and aviation, attracting billions in new investments across the state’s urban and rural areas, boosting local economies while slashing our carbon emissions.

“We can’t ebb the tide of climate change and usher in this new future all on our own, it takes partnerships all over the world like this one to realize our full economic potential and help curb carbon emissions worldwide.”

Duncan Edwards, CEO of leading trade body BritishAmerican Business, said: “Building on an already strong business relationship, the MoU with Washington State has the potential to unlock further opportunities for UK companies in aerospace, clean energy, digital, agriculture, life sciences and innovation.

“Earlier this year, the US and the UK governments signed the Atlantic Declaration, aimed at building a new form of economic partnership to boost growth and competitiveness.

“The state-level MoU’s are an integral part of this. We are already seeing first-hand, in states like Oklahoma and Utah, how their successful execution can deliver benefits for businesses and communities on both sides of the Atlantic.

“We encourage the UK Government to roll out its MoU scheme with ambition and intent, ensuring UK businesses can take advantage of opportunities in as many states as possible.

“We look forward to supporting the UK Government as it highlights the opportunities for business in Washington and beyond.”

Dr Raymond Davies, chair of the British American Business Council Pacific North West chapter, said: "The UK MoU with Washington State is truly momentous as it’s the state home to many of the world’s leading corporations that include Amazon, Boeing Commercial, Blue Origin, Cosco Wholesale, Eddie Bauer, Expedia Group, Microsoft, Starbucks and Weyerhaeuser. 

"The MoU represents a significant new development for improving supply chain resilience in manufacturing and deepening economic development and trade relations. Particularly targeting areas of mutual clusters and SME development in aero/space, digital technologies, life sciences/health-tech, clean-tech, agriculture and innovation. 

"Washington is The State to do business with an innovation edge, the MoU furthers that opportunity significantly. Take advantage!"  

Picture credit: Nusrat Ghani Twitter