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Negotiations hit snag amid US trade concerns
Talks between the UK and US on a landmark technology partnership have stalled, with Washington reportedly raising objections to broader UK trade policies, according to sources familiar with the discussions.
Diplomatic exchanges continue despite delays
A Downing Street spokesperson confirmed on Tuesday that both nations remain engaged in "active conversations at all levels of government" regarding the Technology Prosperity Deal. However, the official declined to address specific obstacles, describing the negotiations as "complex but ongoing."
The New York Times first reported the impasse, citing "broader disagreements" between London and Washington over digital regulations and food safety standards. Neither the UK government nor the White House has responded to requests for comment on these claims.
Initial ambitions and investment pledges
Unveiled during former US President Donald Trump's state visit to the UK in September, the deal was hailed as a "historic" step to deepen cooperation in artificial intelligence, quantum computing, and nuclear energy. Prime Minister Sir Keir Starmer described it as a "generational step change," while Technology Secretary Liz Kendall called it a "vote of confidence" in Britain's AI sector.
Alongside the announcement, major US tech firms-including Microsoft, Nvidia, and Google-pledged a combined £31 billion in UK investments. These commitments, aimed at expanding AI infrastructure such as data centres, are believed to remain unaffected by the current delays.
"This Tech Prosperity Deal marks a transformative moment in transatlantic relations," Starmer said in September.
UK Prime Minister's Office
Non-binding framework and broader trade tensions
The partnership was formalized through a Memorandum of Understanding (MOU), which outlined collaboration on quantum computing, AI hardware, and advanced nuclear energy. However, the document explicitly stated that its provisions were non-binding and contingent on progress in the broader US-UK Economic Prosperity Deal, signed in May.
The Trump administration's trade policies-characterized by tariffs on allies and demands for "fairer" agreements-have complicated negotiations. While the UK has secured deals in sectors like automobiles and pharmaceuticals, a proposed elimination of tariffs on UK steel exports remains unresolved.
Analysts downplay long-term risks
Allie Renison, a former UK government trade adviser now at communications firm SEC Newgate UK, suggested the tech deal's delay reflects a "piecemeal" approach to trade negotiations. "Different sectors are being linked to separate agreements," she told the BBC, adding that the current standoff may be "posturing" rather than a sign of deeper discord.
Despite the uncertainty, Renison dismissed concerns that the impasse would derail US tech firms' investment plans in the UK. "These commitments were made with long-term strategic interests in mind," she said.
What's next?
Officials from both countries have not indicated a timeline for resolving the disputes. Observers note that the outcome could hinge on broader trade negotiations, including unresolved tariff issues and regulatory alignment.
