British Government Announces New US Investments
The British government has announced more than 1.25 billion GBP in private US investments in the British financial services sector before the second state visit by US President Donald Trump. The new US investments are expected to create 1,800 jobs and increase the advantages for millions of customers across the country.
Expected Investments and Job Creation
The deal protects the trade between the two nations, worth 20 billion GBP, including a expected commitment of 7 billion GBP from Blackrock, the world’s largest asset manager. It is expected to deliver more than 8 billion GBP to investment and capital obligations in Great Britain, with over 12 billion GBP flowing in the other direction, creating work and opportunities on both sides.
Companies Involved
Other companies that are expected to invest include PayPal, Bank of America, Citi, and S&P Global. The Bank of America will create up to 1,000 new jobs as part of its first operation in Northern Ireland in Belfast. Citi plans to invest 1.1 billion GBP in its British business activities, while S&P Global will create permanent jobs in Manchester with an investment of 4 million GBP.
Strengthening Relationships
"The strengthening of relationships with the USA increases our economy, creates jobs and secures our role in global financing," said Peter Kyle, Minister for Commerce. "These investments reflect the strength of our permanent ‘golden corridors’ with one of our closest trading partners in front of the US presidential state."
Economic Agreement
In May, Great Britain and the United States approved a "pioneering" economic agreement that secured important tariff reductions for important sectors and protected jobs in the automotive and aerospace sector. The discussions are ongoing with the United States through a broader economic agreement in Great Britain, which aims to increase digital trade and strengthen the supply chains.
Pressure on US Tariffs
MPs have asked the government to put maximum pressure on the United States ahead of Donald Trump’s state visit. The Commons Business and Trade Committee described the upcoming visit as a crucial opportunity to make the US president conclude the remaining conditions of the economic wealth agreement. While Great Britain and the United States achieved a trade agreement in June in which the tariffs were reduced to car and aviation exports to the USA, negotiations on British steel tariffs remain unsolved and keep it at 25%.
Committee Recommendations
The committee also asked the government to conclude agreements on aluminum and pharmaceuticals in order to ensure that the terms reflect the delivery chain dynamics of Great Britain and their shift in the direction of low-carbon production. It emphasized that Britain should also use its partnership with the United States to strengthen its position against China in areas such as artificial intelligence and defense technology and at the same time secure more resistant supply chains and improve access to critical minerals.
Government Response
A government spokesman said the "special relationship" between Great Britain and the USA remains "strong" and that "thanks to our trade agreement, the United Kingdom is still the only country that has avoided 50% steel and aluminum tariffs". "We will work with the United States to implement this pioneering deal as soon as possible in order to give the industry the security they need to protect vital jobs and put more money into the pockets of people," said the government spokesman.
