London and Washington have tentatively restarted work on their multi-billion-pound "Technology Prosperity Agreement," which was paused last year after U.S. President Donald Trump pressured the UK for broader trade concessions.
According to multiple sources familiar with the negotiations, senior officials from both countries have initiated discussions on civil nuclear technology cooperation and are planning a joint summit on fusion technology. These sources described the development as a "breakthrough" for the agreement.
The UK-US "Technology Prosperity Agreement" was announced during President Trump's state visit to the UK last September, aiming to foster collaboration in areas such as artificial intelligence, quantum computing, and nuclear energy.
At the time, UK Prime Minister Keir Starmer stated that the two nations were entering a "golden age" for nuclear development, promising closer transatlantic ties and faster regulatory approvals for nuclear projects. The UK government had previously promoted the agreement as including £31 billion in investment from leading U.S. technology firms.
However, in early December, the U.S. suspended the pact. UK officials indicated that the Trump administration was using the agreement as leverage to seek broader trade concessions beyond technological cooperation.
Sources revealed that last month, at the World Economic Forum in Davos, the UK's Prime Minister's Trade and Investment Envoy, Varun Chandra, met with his U.S. counterpart, Jamison Greer, and both sides agreed to restart work on the nuclear energy component of the technology agreement.
They added that UK officials also held productive talks with Trump's science adviser, Michael Kratsios, regarding technological collaboration. However, cooperation in other areas of the agreement, such as artificial intelligence and quantum computing, has not yet advanced.
Last September, Prime Minister Starmer indicated that the UK-US technology agreement would streamline the process for companies from both countries to build new nuclear power plants, reducing the time required for technical licensing of nuclear projects from approximately three to four years to about two years.
Announced projects under the agreement include a partnership between UK energy company Centrica and U.S. nuclear group X-energy to build an advanced high-temperature gas-cooled reactor in Hartlepool. Aerospace and engineering firm Rolls-Royce also announced that its small modular reactor has entered the U.S. regulatory approval process, signaling the company's intention to promote the technology in the United States.
Late last year, the technology agreement was suspended as U.S. officials grew increasingly frustrated with the UK's reluctance to address so-called "non-tariff barriers" in broader trade talks, such as regulations on food and industrial goods.
Although the UK has agreed to allow 13,000 tonnes of U.S. beef to enter the country tariff-free annually, the trade agreement stipulates that both sides will continue cooperating to expand market access for more U.S. agricultural products.
The U.S. has long sought UK recognition of American food and agricultural standards, but the trade agreement does not specify concrete commitments in this area.
Sources familiar with the latest negotiations also noted that UK ministers believe President Trump's recent surprise announcement of a new 10% global tariff will not hinder the resumption of work related to the technology agreement.
As of now, neither the UK nor the U.S. government has immediately responded to requests for comment.
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