Since President Donald Trump unleashed his wave of global tariffs, the UK has been yearning for such an agreement with the United States.
So have other nations. However, it appears that the United Kingdom arrived first, which is a huge victory for Prime Minister Sir Keir Starmer and his government.
Those close to the talks have said for a long time that the framework of an agreement was largely there, but it was never clear when or whether the maverick president would sign off on what his negotiating team had hammered out.
That he did so this week makes these a critical few days for UK trade, coming just two days after the full free trade deal between the UK and India.
The UK-India agreement is expected to enhance bilateral trade by £25.5 billion and UK GDP by £4.8 billion per year, while also streamlining UK exports to India and lowering levies on Indian textile and footwear exports.
There's an obvious political gain for a prime minister who has been under pressure to reconsider domestic policy following Labour's dismal set of local election results last week.
He has finally completed the deal with India that his Conservative predecessors were unable to accomplish, as well as reached some type of arrangement with the United States, even if it falls short of the comprehensive free trade agreement that Conservative governments promised to achieve but never did.
President Trump appeared to hint at the agreement in a social media post on Wednesday night: "Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY." "The first of many!!!"
The UK side had anticipated an announcement today, but was caught aback when US media revealed the news overnight.
Though Trump has referred to it as a "trade deal," it is likely to be more detailed, with tariffs reduced on specific items.
This year, the US president announced - and later reduced - a swath of tariffs on countries around the world.
The US remains the UK's largest commercial partner, acquiring about £200 billion in British products.
Currently, most items imported from the UK to the United States are subject to a 10% duty.
The UK, like other countries, has been slammed with 25% tariffs on steel and aluminum exports to the United States, as well as a 25% duty on autos and auto parts.
The British government specifically wants to lower taxes on British steel and autos.
The US wants something on pharmaceuticals and technology, which together account for the majority of items exported.
According to Andrew Griffith, the shadow business and trade minister, a US-UK trade agreement "would be welcome and another Brexit benefit".
However, Griffith argues that reviving economic growth "also requires reversing Labour's attacks on business" and lowering "high energy costs".
"Conservatives will closely scrutinise any deal which should first be announced to Parliament," he stated.
Daisy Cooper, a spokesman for the Liberal Democrat Treasury, asserts that the agreement "must be given a vote" for it to be "scrutinized."
"A good trade deal with the US could bring huge benefits, but Liberal Democrats will oppose any concessions that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires," she stated.
"If the government is confident the agreement it has negotiated with Trump is in Britain's national interest, it should not be afraid to bring it before MPs."
There is also a more general point.
In contrast to what many anticipated, Sir Keir has made it a point to build a cordial relationship with Trump.
In addition, there have been increasing complaints about the benefits he was getting from his work on trade, Ukraine, and a variety of other topics.
This is his response.
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