Talks on the technology-related agreement between the United Kingdom and the United States have reached a dead end due to obstacles in the broader trade negotiations between the two sides.
This is known as the “Technology Advancement” agreement—described as “historic” when it was announced during the state visit of former U.S. President Donald Trump last September—which saw the two countries commit to cooperation in areas such as artificial intelligence.
However, negotiations on the agreement have been delayed due to U.S. concerns over what it describes as broader trade barriers imposed by the United Kingdom.
A government spokesperson said: “Our special relationship with the United States remains strong, and the United Kingdom is committed to ensuring that the Technology Advancement agreement delivers opportunities for committed citizens in both countries.”
The New York Times, which first reported the story, said there are “broader disagreements” between the two sides, including disputes over digital regulation standards and food safety rules.
The UK government did not comment on these specific claims, while the White House did not respond to the BBC’s request for comment.
When the agreement was announced, the government sought to highlight the benefits it said it would deliver.
Prime Minister Keir Starmer said in a statement: “The U.S.-UK Technology Advancement agreement is a generational step in our relationship with the United States and will shape the future of millions of people on both sides of the Atlantic.”
Technology Secretary Lindsay Kelder said the partnership would “transform the lives of Britons” and was “a vote of confidence in the UK’s huge artificial intelligence sector.”
At the same time the agreement was announced, several U.S. technology companies revealed a surge in investment in the United Kingdom.
Technology giants such as Microsoft, Nvidia, and Alphabet (Google’s parent company) announced plans to spend a total of £31 billion.
It is believed these investment plans have not been affected.
Google, Microsoft, and Nvidia were contacted for comment, but the companies have not yet responded to the BBC.
Nvidia CEO Jensen Huang said in September that his company’s investments in the UK reflect his belief that it can become a “global force in artificial intelligence”—a goal embraced by the Starmer government.
He said the investments announced by technology companies alongside the Technology Advancement agreement would be used to expand core AI infrastructure such as data centers across the UK.
The technology agreement was recorded in a joint statement between the UK and U.S. governments known as a Memorandum of Understanding, in which both countries affirm their intention to seek cooperation in areas such as advanced artificial intelligence, quantum technology, and nuclear energy.
It noted that this could include working together to build “powerful quantum machines,” supporting innovation in AI hardware, and exploring potential new uses for advanced nuclear energy.
However, the memorandum also states that any proposals are non-binding and will only have “practical effect alongside substantive progress made to formalize and implement” the U.S.-UK economic advancement agreement signed in May.
The Trump administration has called for a review of global trade rules and imposed tariffs on many countries, including traditional allies such as the United Kingdom, while seeking new agreements it says are fairer to the United States.
For the UK, this has meant entering disputes across various sectors of the economy—a process that has led to agreements in areas such as automobiles and, more recently, pharmaceuticals.
However, a proposed agreement to prevent tariffs on British steel exports to the United States has been repeatedly delayed without success, according to the BBC.
Ali Renison, director of communications at a British trade body and a former government trade adviser, said U.S. tariff policy reveals a deeper rift between the United States and the United Kingdom due to its “somewhat piecemeal approach” to signing trade agreements.
She told the BBC: “Rather than everything being done at once, it is handled across a number of areas,” noting that concerns in separate trade sectors may now be affecting technology agreements.
When asked what potential barriers might mean for the promised investments by U.S. technology companies in the UK, Ms. Renison said it was unlikely to be more than “some friction in the broader negotiations.”
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