ATLANTIC DECLARATION

1. Context 

2. About The Atlantic Declaration

• The Atlantic Declaration is a document signed by the United States and the United Kingdom on June 8, 2023.
• The declaration aims to ease trade barriers, enhance defence industry links, and establish a data protection deal.
• Collaboration in industries such as AI, 5G and 6G telecoms, quantum computing, semiconductors, and engineering biology.
• Focus on negotiating a trade pact on critical minerals used in electric vehicles, solar panels, and more.
• Access to US tax credits under the Inflation Reduction Act for some British firms.

3.  Policy Priorities and Protectionism

• Policy changes in the US have moved away from traditional free trade agreements.
• Former President Donald Trump's promises were difficult to materialize, and it remains challenging under President Biden.
• US trade policies favour larger partners with bigger markets, like the EU.
• Biden with the UK's handling of the "Irish question" after Brexit has played a role.
• US businesses lose confidence in the UK as an investment destination due to Brexit, rising corporate taxes, and political turmoil.

4.  Economic Importance

• The UK exports about 12% of its goods to the US, making it the largest export destination.
• The UK is the largest European investor in the US, with half a trillion dollars invested in 2019 and employing 1.3 million Americans.
• The UK is the most important market for US business leaders, surpassing China.
• US foreign direct investments in the UK valued at approximately $860 billion in 2022.
• The UK is the seventh-largest goods export market for the US in 2022.

5.  UK's Post-Brexit Trade Deals

• After leaving the EU, the UK signed trade deals with 71 countries, including rollover agreements.
• Major trade agreements with Japan, Australia, and New Zealand.
• Ongoing talks with India, but no agreement reached yet.
• Digital trade agreements with Singapore and Ukraine.
• UK seeks to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
• State-level agreements signed with Indiana, North Carolina, and South Carolina, with discussions for future agreements with Utah, Texas, and California.

6. The Way Forward

• The UK's relationship with the US has changed significantly since Brexit.
• The UK is no longer as close to the US as it once was, and it is clear that the US is not as interested in a close relationship with the UK as the UK is with the US.
• The Atlantic Declaration is a sign of this changing relationship, but it is not a replacement for a full-fledged free trade deal.