US pauses implementation of $40 billion technology deal with Britain
By Alistair Smout
Dec 15 (Reuters) – The United States has halted implementation of a $40 billion technology deal with Britain following concerns in Washington over London’s approach to digital regulation and food standards, officials said.
“Technology Welfare Agreement” artificial intelligenceQuantum computing and civilian nuclear energy were discussed during President Donald Trump’s state visit to the United Kingdom in September, celebrating the countries’ close ties and ability to work together on trade and technology.
Britain became the first country to agree in principle to reduce some US tariffs in May, but implementation has been slow. Although the two sides agreed to a framework pharmaceutical agreement earlier this month, talks on sectors such as steel have stalled.
British officials confirmed on Tuesday that the United States had paused implementation of the technology agreement. The New York Times, which first reported the move, said US officials were frustrated with Britain’s online security rules, digital services taxes and “food safety restrictions”.
BRITAIN SAID IT WAS DETERMINED TO WORK WITH THE USA
British ministers say the May tariff deal allows US beef exports to increase without compromising UK standards and insist digital regulations and duty will not be negotiated.
A spokesman for British Prime Minister Keir Starmer declined to comment in detail on what he said were “live negotiations” and added that relations with Washington remained strong.
“These types of negotiations are never simple. Both sides want what is best for their countries, but… we remain in active talks,” he told reporters, adding that it was “natural and normal” for countries to prioritize their own interests.
“These talks are not simple. They are complex and take time to secure.”
Within the scope of the Technology Welfare Agreement, the UK and the USA agreed to work together on quantum computers and artificial intelligence, while companies such as Microsoft and Google Nvidia and OpenAI has pledged to invest tens of billions of dollars in Britain.
The White House did not immediately respond to Reuters’ request for comment.
The US is Britain’s largest trading partner and major technology companies have already invested billions of dollars in their UK operations.
British Trade Secretary Peter Kyle visited the United States last week for talks with trade officials and technology firms and “expressed the importance of maintaining momentum in implementing all aspects of the UK-US agreement,” he said.
“Both sides agreed to continue negotiations in January.”
(Reporting by Alistair Smout in London and Gursimran Kaur in Bengaluru; additional reporting by Devika Nair, Editing by Andrew Heavens and Ros Russell)
