Source · Select Committees · Business and Trade Committee
10th Report – US Economic Prosperity Deal
Business and Trade Committee
HC 1306
Published 14 September 2025
Recommendations
2
Accepted
Integrate economic engagement with US into geopolitical dialogue and develop deeper industry partnerships.
Recommendation
The UK must integrate economic engagement with the US into our broader geopolitical dialogue and minimise the risks of ad hoc, zero-sum bargaining with a far larger partner by now turning paper promises into binding bargains. The UK should de-risk …
Read more
Government Response Summary
The government states it is already working to integrate economic engagement with the US through the Economic Prosperity Deal and Tech Prosperity Deal, securing significant investment and focusing on shared economic security objectives. It notes that the upcoming Critical Minerals Strategy will provide further detail on supply chain security.
Department for Business and Trade
View Details →
5
Accepted
Maximise pressure on the US to agree final terms for an Economic Prosperity Deal.
Recommendation
Going forward, we recommend the Government now maximises pressure on the US, beginning during and continuing after the President’s State Visit, to agree final terms for a lasting, Economic Prosperity Deal that de-risks the threat of future sectoral tariffs, maximise …
Read more
Government Response Summary
The government highlights existing successes from the President's State Visit, including the Technology Prosperity Deal and preferential tariff rates for steel, aluminium, lumber, and cars. It states it is continuing talks on a wider UK-US Economic Deal and will work closely to further reduce tariffs and expand the EPD over time.
Department for Business and Trade
View Details →
6
Accepted
Ensure all substantive government trade commitments are subject to full parliamentary scrutiny.
Recommendation
We recommend that whenever the Government makes substantive trade commitments, whatever form this takes, it must ensure that they are subject to full parliamentary scrutiny. (Recommendation, Paragraph 51)
Government Response Summary
The government states that it has kept and will continue to keep Parliament informed through statements, affirming that any final agreement for the EPD will be scrutinised by Parliament in line with established procedures.
Department for Business and Trade
View Details →
7
Accepted
Set out a clear timetable for parliamentary scrutiny and stakeholder engagement of implementing measures.
Recommendation
We further recommend that the Government set out, in advance of ratification, a clear timetable for parliamentary scrutiny and stakeholder engagement and of any implementing measures, so that Members and affected sectors can assess the implications of the deal before …
Read more
Government Response Summary
The government states it has already provided updates to Parliament through statements and will continue to keep the House informed. It affirms that any final agreement will be subject to parliamentary scrutiny in line with established procedures, but does not commit to setting out a clear timetable in advance of ratification.
Department for Business and Trade
View Details →
8
Not Addressed
Ensure adequate time for a full House of Commons debate on the Economic Prosperity Deal.
Recommendation
Given the significance of the Economic Prosperity Deal for UK trade policy, the Government must ensure that time is made available in the House of Commons for a full debate on a substantive motion. (Recommendation, Paragraph 53) National and Sectoral …
Read more
Government Response Summary
The government lists past ministerial statements and pledges to keep Parliament informed on EPD developments, asserting that any final agreement will be scrutinised in line with established procedures, but it does not commit to holding a full debate on a substantive motion.
Department for Business and Trade
View Details →
10
Accepted
Work with industry to monitor, allocate, and expand the 100,000-vehicle automotive quota.
Recommendation
The Government must work with industry to closely monitor use of the 100,000-vehicle automotive quota under the GT-EPD, agree a clear, fair mechanism for its allocation and management, and, given the complementary nature of the US and UK automotive industries, …
Read more
Government Response Summary
The government states the US will administer the 100,000-vehicle quota on a quarterly first-come, first-served basis from 2026 and confirms regular engagement with industry on UK-US trade.
Department for Business and Trade
View Details →
12
Accepted
Maximise pressure on the US to minimise tariffs for UK steel and aluminium.
Recommendation
The Government must maximise pressure on the US to minimise tariffs for UK steel and aluminium producers and work to ensure that any final agreement reflects the realities of UK supply chains and the sector’s transition to low- carbon production. …
Read more
Government Response Summary
The government states it has already secured a preferential 25% tariff rate for UK steel and aluminium exports to the US, preventing a 50% increase, and details several bold actions taken to support the steel industry's competitiveness and low-carbon transition.
Department for Business and Trade
View Details →
13
Accepted
Bring forward reforms to the Trade Remedy Authority for faster implementation of trade defences.
Recommendation
Furthermore, the Government must bring forward reforms to the operation of the Trade Remedy Authority in order to ensure that is capable of moving at the same speed as the EU in implementing trade defences against diverted products into the …
Read more
Government Response Summary
The government states it is seeking to introduce legislation to make the UK’s trade remedies system more accessible, assertive, and agile as soon as parliamentary time allows, with further details to be announced later. The Trade Remedies Authority is also committed to reforming its processes for faster delivery and building capability.
Department for Business and Trade
View Details →
14
Accepted
Continue engaging with industry and US to address tariffs on steel and aluminium derivatives.
Recommendation
The Government must also continue to urgently engage with UK industry, and the US administration, to understand and address the full impact of steel and aluminium derivative products being subject to a 25% tariff. (Recommendation, Paragraph 76)
Government Response Summary
The government states it is regularly engaging with UK businesses and sectors on the impact of US tariffs, noting that the 25% tariff provides a competitive advantage compared to the 50% faced by other countries.
Department for Business and Trade
View Details →
15
Accepted
Press United States for clarity and wider tariff relief for UK pharmaceutical exports.
Recommendation
The Government should continue to press for clarity from the United States on the conditions attached to future preferential access for UK pharmaceutical exports, and, where appropriate, secure wider tariff relief for scientific and medical products. Given the positive outcome …
Read more
Government Response Summary
The government affirms its commitment to the UK pharmaceutical sector within its Industrial Strategy and states it will continue to press the US for outcomes that deliver benefits for UK industry, aligning with the recommendation to seek clarity and wider tariff relief.
Department for Business and Trade
View Details →
17
Acknowledged
Work urgently with UK bioethanol industry to protect domestic production capacity and supply chains.
Recommendation
We recommend that the Government continue to work urgently with the remaining UK bioethanol industry to co-design appropriate support measures. These should protect domestic production capacity and associated supply chains while medium-term supply side policies take effect. (Recommendation, Paragraph 99) …
Read more
Government Response Summary
The government states that DBT officials are continuing to work closely with other government departments to monitor and assess risks across the supply chain, but it does not specifically commit to co-designing support measures with the bioethanol industry.
Department for Business and Trade
View Details →
18
Acknowledged
Drive further negotiations with US to de-risk tariffs and expand economic co-operation.
Recommendation
The Government must now drive forward further negotiations with the US to de-risk the threat of future tariffs, seek to match EU terms where those are preferential to those for the UK, lock in agreed tariff reductions and expanding co-operation. …
Read more
Government Response Summary
The government states that UK-US discussions are continuing under the EPD General Terms, with a view to achieving a significantly preferential outcome and expanding the agreement, but it provides no specific commitments or timelines for de-risking tariffs or matching EU terms.
Department for Business and Trade
View Details →
19
Accepted
Commence Industrial Strategy Council use to craft ambitious vision for US-UK trade cooperation.
Recommendation
Further negotiations could benefit from being mission-focused, in order to avoid the pit-falls of ad-hoc zero sum negotiations. This should include, for example, fostering deeper integration of US and UK science, research and universities communities and convening the investment community …
Read more
Government Response Summary
The government highlights that the Tech Prosperity Deal already fosters integration of science and technology communities, and mentions the Industrial Strategy Advisory Council was formed in December 2024 to convene experts and make recommendations on international partnerships and trade.
Department for Business and Trade
View Details →
20
Accepted
Approach Economic Prosperity Deal as strategic economic and foreign policy for Western leadership.
Recommendation
It is vital that the UK approaches the EPD not merely as a trade arrangement, but as a component of an economic and foreign policy strategy focused on ensuring Western leadership in the face of global competition, particularly from China. …
Read more
Government Response Summary
The government accepts the need for a strategic economic and foreign policy approach to the EPD, stating it will integrate modern trade tools, strengthen defences against unfair practices, and implement its Industrial and Trade Strategies, including launching a Supply Chain Centre to map vulnerabilities and build resilience.
Department for Business and Trade
View Details →
21
Accepted
Strike balance in digital trade to promote AI while safeguarding UK sovereign capabilities.
Recommendation
Any future digital trade provisions negotiated under the Economic Prosperity Deal should strike a careful balance: promoting AI adoption and cross-border collaboration to strengthen the Western technological 55 alliance, while safeguarding intellectual property, ensuring fair taxation, and enabling the development …
Read more
Government Response Summary
The government accepts the recommendation, stating it is in line with the UK's approach to EPD discussions and that the UK and US have agreed to negotiate ambitious digital trade provisions to promote growth while safeguarding interests.
Department for Business and Trade
View Details →
22
Accepted
Work with industry to prevent UK-US economic alignment creating unintended trade obstacles.
Recommendation
The Government should work closely with industry to ensure that closer UK– US alignment on economic security measures, such as investment screening and export controls, does not create unintended obstacles for legitimate trade and collaboration. It should provide clear guidance …
Read more
Government Response Summary
The government states that industry engagement is central to its approach, citing existing initiatives like NPSA and ECJU guidance, and commits to establishing a new Economic Security Advisory Service to provide advice, guidance, and facilitate dialogue with businesses.
Department for Business and Trade
View Details →
23
Deferred
Introduce mandatory human rights due diligence legislation and consider forced labour import bans.
Recommendation
In line with the previous recommendations of this Committee, the Government should align with other countries to introduce mandatory human rights due diligence legislation, and consider new levers such as import bans on products from regions where forced labour prevails, …
Read more
Government Response Summary
The government states it has launched a review into the UK’s approach to responsible business conduct, actively examining existing measures and considering new tools like mandatory human rights due diligence and import controls to combat forced labour in supply chains.
Department for Business and Trade
View Details →
24
Accepted
Engage stakeholders early to protect UK standards and unlock market access opportunities.
Recommendation
We recognise that the GT-EPD lays important foundations for reducing non- tariff barriers. The Committee urges Government to engage stakeholders early to ensure that future commitments protect UK standards while unlocking market access opportunities. (Recommendation, Paragraph 135)
Read more
Government Response Summary
The government states it has been, and will continue to be, extensively engaging with businesses and stakeholders across the economy to protect UK standards while unlocking market access opportunities under the EPD.
Department for Business and Trade
View Details →
25
Not Addressed
Ensure UK's economic and strategic interests remain central to Economic Prosperity Deal negotiations.
Recommendation
The Committee will continue to monitor developments closely and expects the Government to ensure that the UK’s economic and strategic interests remain central to the negotiation of the full Economic Prosperity Deal. (Conclusion, Paragraph 140)
Government Response Summary
The government highlights the economic potential of digital technologies and AI, referencing the Tech Prosperity Deal and its commitment to ambitious digital trade provisions and safeguarding the ability to regulate the digital economy, but doesn't explicitly detail how UK's broader economic and strategic interests will be central to the full EPD negotiation.
Department for Business and Trade
View Details →
26
Acknowledged
Balance digital trade and AI growth with strong protections for UK standards and industries.
Recommendation
Looking ahead, future commitments in the potential Economic Prosperity Deal must balance opportunities for growth in digital trade, AI, and services with strong protections for UK standards, tax sovereignty, and critical domestic industries. (Recommendation, Paragraph 141) 56
Read more
Government Response Summary
The government highlights the economic potential of digital technologies and AI, referencing the Tech Prosperity Deal and its commitment to ambitious digital trade provisions, and states it will continue to safeguard its ability to regulate the digital economy, but doesn't specifically address the balance for all UK standards, tax sovereignty, and critical domestic industries across the full EPD.
Department for Business and Trade
View Details →
Conclusions (6)
1
Conclusion
Acknowledged
The United States is expanding the use of trade policy to advance its strategic and security objectives. It is therefore welcome that the United Kingdom has achieved the Economic Prosperity Deal representing a new phase of UK-US economic engagement. (Conclusion, Paragraph 26)
Government Response Summary
The government acknowledges the importance of the US relationship and confirms it is building on the Economic Prosperity Deal and Tech Prosperity Deal to foster a future-facing partnership with significant investment commitments and cooperation on economic security, supply chains, and critical minerals.
3
Conclusion
Accepted
We welcome the Government’s work to date in securing swift tariff relief for key sectors under the GT-EPD and acknowledge the progress made in challenging circumstances. However, we must acknowledge that UK exporters are now trading with our most significant single trading partner on terms which are worse than before …
Government Response Summary
The government acknowledges the Economic Prosperity Deal (EPD) and highlights achievements such as the Technology Prosperity Deal and preferential tariff rates for steel, aluminium, lumber, and cars. It states it is continuing talks on a wider UK-US Economic Deal and working to expand the EPD and reduce tariffs further.
4
Conclusion
Acknowledged
We welcome the extension of the treaty parliamentary scrutiny period from 10 to 20 sitting days, as set out in the Trade Strategy. However, we regret that scrutiny of the GT-EPD are limited due to the trade-related provisions having been negotiated outside a formal treaty process, and that an economic …
Government Response Summary
The government acknowledges the committee's concerns by listing past statements to the House and committing to continue informing Parliament on EPD developments, with any final agreement subject to established scrutiny procedures.
9
Conclusion
Accepted
We agree with the UK automotive industry that the tariff reductions secured under the Economic Prosperity Deal are to be welcomed, but the benefits are constrained by the 100,000-vehicle quota and uncertainty around how it will be allocated. (Conclusion, Paragraph 61) 53
Government Response Summary
The government clarifies that the 100,000-vehicle quota for UK automotive exports to the US, at a 10% tariff rate, will be administered by the US on a quarterly first-come, first-served basis starting January 1, 2026.
11
Conclusion
Accepted
While the General Terms of the Economic Prosperity Deal outline an intention to establish a tariff-reducing quota for UK steel and aluminium exports, no detailed agreement has yet been reached. Key issues remain unresolved including the size of the quota, which products will qualify and the conditions attached. This continued …
Government Response Summary
The government addresses the uncertainty by stating the UK will maintain a preferential 25% tariff rate on steel and aluminium exports to the US. It also details several other actions taken to support the steel industry, including new trade measures and funding.
16
Conclusion
Acknowledged
We were disappointed to hear that the Government were unable to provide support to the bioethanol industry to prevent the closure of the Vivergo plant. This has already had a substantial impact on domestic production capacity of bioethanol, associated supply chains, and the UK’s ability to produce CO₂ and animal …
Government Response Summary
The government acknowledges the concern by stating that DBT officials are continuing to monitor and assess risks across the supply chain in collaboration with other departments.