UK and Washington State Sign Trade Memorandum of Understanding, Strengthening Economic Ties

The United Kingdom and the state of Washington have solidified their commitment to boosting trade and investment through the signing of a new Memorandum of Understanding (MoU).

The agreement was signed in Seattle on Monday, September 25th. With the addition of Washington, the UK now has MoUs with six US states, collectively representing a staggering combined GDP of £2.2 trillion.

Washington State, home to tech giants like Amazon, Starbucks and Microsoft, along with aerospace titan Boeing, boasts a GDP equivalent to that of Poland. The MoU signed on Monday marks another milestone in the UK's ongoing efforts to forge robust economic ties with individual US states.

Minister for Industry and Economic Security, Nusrat Ghani, joined forces with Washington State Governor Jay Inslee in signing the pact, demonstrating the commitment of both parties to fostering closer economic cooperation.

The UK's previous MoUs with states including Indiana, North Carolina, South Carolina, Oklahoma and Utah have already facilitated substantial trade, with these states collectively importing £5.1 billion worth of UK goods in 2022 alone.

The UK government is actively pursuing similar agreements with states like Florida, Texas, California, Colorado and Illinois, as it seeks to broaden its economic reach across the United States.

Aerospace has been identified as a priority sector under the new MoU, aiming to facilitate increased collaboration and trade between the UK and Washington State. Boeing, a key player in this sector, has invested over £12 billion in the UK supply chain since 2015, emphasising the importance of this industry to both parties.

Boeing's recent £80 million investment in a composite research facility in Sheffield underscores its commitment to strengthening long-term partnerships and supply chains in the UK.

Minister Nusrat Ghani highlighted the significance of the new pact, stating: "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," the minister added.

Washington State Governor Jay Inslee also spoke on the recent commitment, saying: "Today's MOU makes the UK Washington's latest global partner in trade and innovation focused on clean technology and industry. 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 the one announced today to realise our full economic potential and help curb carbon emissions worldwide."

In addition to the MoU signing, Minister Ghani will lead a delegation of 35 UK businesses attending the 2023 Boeing Supplier Showcase. These businesses have been handpicked by Boeing to engage with their procurement and supply chain teams. This event aims to showcase the UK's cutting-edge aerospace industry, which continues to drive innovation through new technology, research and design.

Maria Laine, President of Boeing in the UK, Ireland and the Nordic region, expressed Boeing's commitment to the UK, stating: "We are immensely proud of our long-standing relationship with the UK. Working closely with the UK Government, ADS and other key partners, we remain committed to developing and expanding the UK supply chain and creating opportunities for collaboration across Boeing's global programs."

While aerospace is a key focus, the MoU also aims to strengthen trade relations in other vital sectors. Clean energy, digital technology, life sciences, supply chain resilience, agriculture and innovation are among the priority areas identified for collaboration.

The agreement will also work to expand market access, particularly in government procurement and recognition of professional qualifications, enabling British and Washington-based businesses to provide services on both sides of the Atlantic.

Matt Farnsworth, Commercial Director at the University of Sheffield Advanced Manufacturing Research Centre (AMRC), one of the 35 UK businesses attending the Boeing Supplier Showcase, highlighted the importance of such trade missions.

He stated: "As a research organisation, the University of Sheffield AMRC has always found trade missions organised by the Department for Business and Trade to be extremely valuable." He explained that they provide a fantastic opportunity to broaden and strengthen existing industrial relationships and ecosystems while developing new opportunities for collaboration.

The AMRC, with its longstanding research relationship with Boeing spanning over two decades, has benefited from previous trade missions, opening new opportunities for collaboration with various Boeing business units and technology owners. The AMRC plays a pivotal role in driving innovation and research and development for UK manufacturing, particularly in the aerospace sector.