The United States and the United Kingdom have preliminarily restarted negotiations on a "Science and Technology Prosperity Agreement" valued at tens of billions of pounds. A breakthrough has been achieved in the civil nuclear energy sector, while cooperation in core technological areas such as artificial intelligence and quantum computing remains stalled.
Multiple sources familiar with the discussions have indicated that senior officials from both nations have engaged in talks concerning civil nuclear technology collaboration and a jointly hosted summit on fusion technology. This cooperative framework, which was temporarily shelved last year due to bilateral trade frictions, is now gradually being reactivated.
The partial revival of the agreement is expected to directly benefit multinational energy companies by facilitating investment and project implementation, while also significantly shortening the regulatory approval timeline for nuclear projects. Despite recent uncertainties in the broader macroeconomic and trade environment, market investors maintain expectations for synergistic cooperation between the two countries in traditional energy technologies.
However, progress has not been made in this round of discussions regarding collaboration on cutting-edge fields like AI and quantum computing, which were key components of the original agreement. This highlights the ongoing strategic competition and divergence of interests between the two nations across a wider spectrum of technology sectors.
The nuclear energy sector is taking the lead in advancing the partnership. During a state visit by former US President Donald Trump to the UK last September, the two countries publicly announced the agreement aimed at fostering cooperation in AI, quantum computing, and nuclear energy.
The UK government had previously stated that the agreement included investment commitments totaling £31 billion from leading US technology firms. To facilitate the restart of talks, UK Prime Minister's Trade Envoy Varun Chandra met with his US counterpart, Jamieson Greer, last month on the sidelines of the World Economic Forum in Davos. Both sides agreed to resume the nuclear energy component of the technology agreement. Concurrently, UK officials held constructive dialogues with Michael Kratsios, a science adviser to Donald Trump, regarding scientific collaboration.
The thaw in nuclear cooperation will have a direct impact on related companies. UK Prime Minister Keir Starmer has previously stated that the agreement would simplify the process for companies to build new power stations in both countries, potentially reducing technology licensing approval times from approximately three-to-four years to about two years. Relevant companies have already begun positioning themselves. UK energy firm Centrica has reached an agreement with US nuclear group X-energy to construct an advanced high-temperature gas-cooled reactor in Hartlepool. Meanwhile, aerospace and engineering company Rolls-Royce has entered the regulatory approval process in the US for its small modular reactor, signaling its intent to enter the American market.
The progression of the technology agreement has not been without obstacles. In early December of last year, the US unilaterally paused the implementation of the pact. Sources indicated that this decision stemmed from growing frustration among US officials over the UK's perceived unwillingness to address "non-tariff barriers" in broader trade negotiations, particularly those related to regulations for food and industrial goods.
At the time, the Trump administration was pressuring the UK to make concessions in areas beyond the technological partnership. The US has long sought UK recognition of American standards for food and agricultural products. Although the UK had previously agreed to allow 13,000 tonnes of US beef to enter its market tariff-free annually, the broader trade deal only committed to continued efforts for improving market access for more US agricultural products, without the UK offering specific, substantive pledges.
The global trade environment is currently facing new uncertainties. This week, Donald Trump unexpectedly announced plans to impose a 10% global tariff. This policy shift has sparked widespread concern in markets regarding global supply chains and the outlook for cross-border investment. However, sources note that relevant ministers believe this new tariff policy will not hinder efforts to restart the US-UK technology agreement. This suggests that strategic cooperation needs in specific high-tech and energy security areas may, to some extent, withstand the pressures of broader trade friction. As of now, the UK and US governments have not immediately responded to requests for comment on the matter of the agreement's revival.
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