Exclusive

Kemi Badenoch launches bid for three new mini US trade deals in Brexit pre-election boost

13 February 2024, 18:35

Ms Badenoch is aiming to finalise mini-US trade deals
Ms Badenoch is aiming to finalise mini-US trade deals. Picture: Alamy
Natasha Clark

By Natasha Clark

Trade chief Kemi Badenoch will launch mini trade deal talks with another three American states to try and secure a pre-election Brexit boost.

Listen to this article

Loading audio...

Ministers are kicking off discussions with New York, Colorado and Oregon in the coming weeks, LBC can reveal.

New York's huge £2trillion dollar economy could be opened up to British markets if a deal is signed in the coming months.

But a bumper US-wide deal is still off the table for now.

Seven mini-deals have already been struck with individual states to try and boost trade links.

Those include links with Indiana, North Carolina, South Carolina, Oklahoma, Utah, Washington, and Florida.

They have a combined GDP of £3.4trillion - bigger than France - and imported £7.3billion of British goods since the deals were signed.

Read more: The Body Shop collapses into administration with up to 2,000 jobs at risk

A government official said: “Joe Biden has taken the option of a US trade deal off the table so we're targeting individual states instead.

“Some of these states have bigger GDPs bigger than major European countries and their economies fit perfectly with what UK firms are looking for.

“Take our biggest to date - Florida - which has a massive aerospace industry as the home of NASA, and the UK aerospace industry is eager to do more business with them.

“This is just the start, and with more state-level discussions starting all the time, we're using our Brexit freedoms to build new trade relationships with the US.”

The UK has all-but given up hope of striking a US deal under President Joe Biden, who has made it clear he has other priorities.

It comes as Ms Badenoch signed a new trade agreement with Nigeria today in a bid to boost investment in Britain - the first with an African nation.

Read more: Labour suspends candidate after 'unacceptable' Israel comments 'made at meeting with abandoned Rochdale contender'

And ministers are confident that they will be able to strike the long-awaited deal with India by the time they and the UK head to the polls this year, despite reports they are pressuring them to water an agreement down.

The next few weeks are expected to be crucial for talks as India will vote in April.

One source said: "Not everyone will get what they want, but we think we can get it over the line."

Many Tory MPs see Ms Badenoch - a leading Brexiteer on the right of the party - as a potential successor to Rishi Sunak if he loses the election.

The India deal has been held up repeatedly despite Boris Johnson's promise to get it done by Diwali in 2022 - partly thought to be over issues of migration rules for workers and businesses.

But the Government has insisted that migration will not play a part in any deal.

Thirteen rounds of talks have already taken place, but Delhi is stepping up the pressure to get it over the line in time for their own elections.

Remaining issues are thought to include differences over Scotch whiskey and car tariffs, and pharmaceutical products.

India is also reported to be concerned about their workers paying National Insurance if they come here on business visas - despite having no access to pensions.

They are also said to be pushing the UK for guarantees that Indian students can stay in the UK for two years after graduation - which could spark another huge row over migration.

Labour's shadow business and trade secretaries visited India earlier this week - the party has said they will attempt to seal a deal if Rishi Sunak cannot do so before the election.

More Latest News

See more More Latest News

Garda

Man arrested after several people reportedly stabbed in Dublin

Chancellor Rachel Reeves.

Reeves calls for economic growth talks with bank chiefs, after 'Stagflation' warning

Reform UK Holds a Regional Conference In Wiltshire

Farage claims Conservative Party has less than 100,000 members and blasts Kemi Badenoch for calling Reform member numbers 'fake'

Foreign Ministers attend an Arab League extraordinary meeting in Cairo on October 11, 2023.

Egypt to host emergency Arab League summit after Trump announces plan to displace 1.8 million Palestinians and 'take over Gaza'

Jack Fincham.

Love Island star admits to feeling like a 'failure' after spending '£1 million on drugs, alcohol and gambling'

Westminster Abbey and Church House

Church of England meeting at time of ‘unprecedented crisis’ after scandals and historical abuse claims

The plane was forced to make an emergency landing

easyJet flight forced to make emergency landing after pilot collapses on board

Joel Verite was among the first on the scene of the Southport knife attack where three girls were stabbed to death at a Taylor Swift-themed dance party.

Southport hero who came face-to-face with Rudakubana as he rushed to save dying girls says it was 'like a horror film'

Labour vows to punish any other MP or minister caught up in Andrew Gwynne WhatsApp group scandal

Labour vows to punish any MP caught up in Andrew Gwynne WhatsApp group scandal

Donald Trump has spoken to Vladimir Putin

Trump confirms he 'spoke to Putin about ending war in Ukraine' as Russian president 'wants to see people stop dying'

displaced Gazans walking toward Gaza City on January 27, 2025, after crossing the Netzarim corridor from the southern Gaza Strip.

Israeli troops withdraw from key militarised corridor that splits Gaza in two as part of ceasefire deal

The bodies of Andrew Searle and his wife Dawn were discovered by a neighbour in Les Pesquiès, south of Villefranche-de-Rouergue, on Thursday afternoon.

Mysterious death of British couple in French villa suspected murder-suicide as investigators consider new theories

David Schwimmer has called for Elon Musk to ban Kanye West from X

Friends star David Schwimmer calls for Kanye West to be banned from X over 'hate-filled, ignorant' remarks

The NTSB recovers the debris of a Sikorsky UH-60 Black Hawk involved in a mid-air collision near DCA in Arlington, VA.

All major parts of DC plane and Black Hawk helicopter involved in mid-air collision recovered, investigators confirm

A Thai hostage who was freed from Hamas, Pongsak Thaenna, hugs a relative upon arrival at Suvarnabhumi International Airport

'We never gave up hope': Freed Thai hostages in tears of joy as they reunite with families after more than a year

Harry and Meghan at the opening ceremony for the Invictus Games.

Meghan and Prince Harry cheer on Team UK at Invictus Games opening ceremony