Trade

The United Kingdom and United States have many things in common, but perhaps most important is their shared democratic values. These, along with sound trade policies on both sides of the pond, will help propel each respective nation forward.

• That was the main message conveyed during a business roundtable discussion between the NAM and its British counterpart association, Make UK, on Monday.

What went on: In attendance at the meeting at the NAM’s Washington, D.C., headquarters were a delegation of eight members of Parliament who sit on the Business and Trade Commission, British Embassy representatives and nearly two dozen U.S.- and U.K.-based manufacturers.

• The focus of the event—which came approximately a year after the NAM and Make UK signed a memorandum of understanding to collaborate on programming—was to explore ways to enhance the U.S.–U.K. trade and economic relationship. There is no free trade agreement between the U.K. and the U.S.
• The delegation, led by House of Commons Business and Trade Committee Chair Rt. Hon. Liam Byrne of the Labour Party, is also in the U.S. for talks with members of the Biden administration, Congress and the business community to discuss U.K. export growth and manufacturing strategy.

Why it’s important: In the absence of an official FTA between the U.S. and the U.K., the two nations must “be pragmatic about measures our businesses and our governments can take now that will help our economies grow, create jobs, innovate and prosper together,” NAM President and CEO Jay Timmons told the delegation.

• Make UK CEO Stephen Phipson CBE said event attendees all agreed that “as we move closer to our respective domestic elections this year and with the challenges to the framework of global trade continuing, [we must] lean into future bilateral cooperation on trade, innovation, energy and technology, [as well as] defense-sector cooperation.”

Policy talk: Roundtable participants discussed “big-ticket” legislation that has proved particularly important to manufacturers in recent years: the 2021 Bipartisan Infrastructure Law, the CHIPS and Science Act of 2022 and parts of the Inflation Reduction Act of 2022.

• The pro-growth elements in these measures “make our industry more competitive, empowering manufacturers to invest in new facilities and new equipment, expand production and to create jobs,” Timmons went on.

By the numbers: Continued good relations between the U.S. and the U.K. are key not just because of the shared belief in and commitment to democracy, but also because of the large role each nation plays in the other’s economy.

• The U.S. is the U.K.’s single biggest trading partner by country, having accounted for more than 16% of total trade in 2022.
• That same year, U.S. exports to the U.K. were $76.2 billion, an increase of 40% from prior years. Meanwhile, in 2022, American imports from the U.K. were $64.0 billion.

Come what may: Though the U.S. is fast approaching an important and widely anticipated presidential election, the country will stay committed to its relationship with the U.K. no matter who wins in November, Timmons told the delegation.

• “Regardless of the outcomes … we will remain resolved to strengthen our bonds and to do everything in our power to grow manufacturing competitiveness on both sides of the Atlantic.”