US pauses implementation of USD40bn technology deal with Britain

LONDON: The United States is stalling the implementation of a USD40 billion technology agreement with Britain, officials said, following concerns in Washington over London’s approach to digital regulation and food standards.

The “Tech Prosperity Deal,” covering artificial intelligence, quantum computing, and civil nuclear energy, was agreed during President Donald Trump’s state visit to Britain in September, in a celebration of the countries’ close ties and ability to work together on trade and technology.

Britain became the first country to agree in principle to lower some US tariffs in May, but implementation has been slow. Talks on sectors such as steel stalled, though the two sides agreed a framework pharmaceutical deal earlier this month.

British officials confirmed on Tuesday that the US has paused implementation of the tech deal. The New York Times, which first reported the move, said US officials were frustrated by Britain’s online safety rules, digital services tax, and food safety restrictions.

British ministers say the May tariff deal allowed higher US beef exports without compromising UK standards and insist digital regulations and tax will not be negotiated away.

A spokesperson for British Prime Minister Keir Starmer declined to comment in detail on what he said were “live negotiations,” adding that the relationship with Washington was still strong.

“Negotiations of this kind are never straightforward. Both parties obviously want what’s best for their countries, but… we remain in active conversations,” he told reporters, adding it was “natural and normal” for countries to prioritise their own interests.

“These talks are not simple. They are complex, and they take time to secure.”

Under the Tech Prosperity Deal, Britain and the United States agreed to work together on quantum computers and artificial intelligence, while the likes of Microsoft, Google, Nvidia and OpenAI pledged to invest tens of billions of dollars in Britain.