• The US and UK have formally initiated a sweeping Economic Prosperity Deal aimed at deepening tech cooperation and removing trade barriers.
  • The agreement, which became operative on May 8, 2025, focuses on economic security, export controls, and supply chain resilience.
  • The deal is expected to boost bilateral trade, create high-paying jobs, and align the two nations' approaches to countering non-market policies from adversarial countries.

In a significant move to strengthen the transatlantic alliance, UK Prime Minister Keir Starmer and US President Donald Trump have committed to a major technology and economic prosperity pact. The proposed U.S.-UK Economic Prosperity Deal (EPD) is designed as a transformative framework to increase trade, facilitate investment in critical industries like technology, and promote deeper commercial integration between the two nations.

According to people familiar with the negotiations, the arrangement officially became operative earlier this month, establishing the formal terms for ongoing implementation. The deal strengthens coordination on a range of complex issues, including economic security, export controls, ICT vendor security, and the protection of intellectual property. A key objective is to grow mutually beneficial trade and create high-paying jobs while ensuring more secure and reciprocal access to each other's government procurement markets.

The pact directly addresses growing concerns about third-country non-market policies and includes provisions for enhanced customs cooperation to combat duty evasion and other illegal trade practices that undermine economic security. Support for critical industries is also a cornerstone, intended to boost resilience and defense preparedness—a reflection of broader economic and security priorities that have emerged in recent years.

Politically, the cooperation is underpinned by the historically close “Special Relationship” and signals a coordinated response to global economic challenges. The UK’s Procurement Act 2023 is seen as a key part of the domestic framework that will ensure security and fair treatment in government contracts. Efforts to reach the UK Department for Business and Trade for additional comment on the implementation timeline were not immediately successful.

The deal also includes commitments to improved labor practices and environmental standards, suggesting an effort to align commercial growth with social responsibility. For technology firms and workers in both countries, the agreement could mean reduced barriers and increased opportunities, though the precise impact on specific sectors remains to be seen. In the longer term, the partnership may set new standards for transatlantic digital governance and supply chain security, with the arrangement allowing for ongoing review and renegotiation to adapt to future challenges.