Welcome to the February BABN Policy and Trade Update.

Earlier this month, BritishAmerican Business hosted the Transatlantic Trade and Investment Policy Conference, bringing together policymakers, business leaders and experts to take stock of the UK‑US economic relationship and look ahead to the year to come. The conference was followed on the same day by the annual British‑American Parliamentary Group (BAPG) reception, featuring, among others, the US Ambassador to the UK, Warren Stephens, and the UK Secretary of Defense, John Healey. Both events underlined strong cross‑party and cross‑sector support for deeper UK‑US cooperation.

Alongside this, we published our 2026 Policy Agenda, setting out our priorities for strengthening transatlantic trade and investment, reducing regulatory friction and delivering practical outcomes for business. The agenda will guide our engagement with governments and stakeholders on both sides of the Atlantic over the coming months. More details on this below.

As for the wider policy environment, recent weeks have seen renewed uncertainty around tariffs, including the US administration’s proposed (and then withdrawn) Greenland‑related tariff measures, to which BAB responded by highlighting the risks of escalation and unintended consequences for allied economies. Attention is now turning to a potential US Supreme Court ruling on the use of IEEPA authorities, expected no earlier than late February, which could have significant implications for the future of baseline tariffs and trade certainty.

We also welcomed the appointment of a new British Ambassador to the United States, Sir Christian Turner KCMG, as well as Varun Chandra’s appointment as the Prime Minister’s Special Envoy to the US on Trade and Investment.

See below for a breakdown of policy and trade headlines and our published works.

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Critical Minerals Memorandum of Understanding

4 February 2026

Overview: The UK and US signed a Memorandum of Understanding (MoU) on critical minerals in Washington DC, formalising closer cooperation to strengthen supply chains for minerals essential to advanced manufacturing, clean energy, and defence. The MoU was signed by UK Foreign Office Minister Seema Malhotra MP and US Under Secretary of State Jacob Helberg, reinforcing the strategic importance of transatlantic collaboration in this area.

What it does: The agreement commits both governments to work together to accelerate investment in mining, separation, processing, and recycling of critical minerals and rare earths, using coordinated policy tools and financing mechanisms. It also includes commitments to streamline permitting processes, promote transparent and fair pricing, deter non‑market practices, and review critical mineral asset sales on national security grounds.

Why it matters: The MoU supports the UK’s Critical Minerals Strategy, which aims to ensure that no more than 60% of the UK’s supply of any critical mineral comes from a single country by 2035, and is backed by up to £50 million in new funding to boost domestic production and processing. For US‑UK businesses, the partnership is expected to unlock new opportunities for private investment and strengthen supply chain resilience across sectors such as automotive, defence, and clean energy.

Read the full press release here.



Nuclear Fuel Deal

23 January 2026

Overview: UK and US nuclear experts have signed a landmark partnership to strengthen cooperation on the safe transport of next‑generation nuclear fuel, reinforcing transatlantic energy security. The agreement was signed in Washington DC by Nuclear Transport Solutions (NTS) and Westinghouse, and marks a significant step in deepening UK–US collaboration on advanced nuclear technologies.

What it covers: The partnership focuses on the joint development of Pegasus, a new transport package designed to safely move High Assay Low Enriched Uranium (HALEU) — a more efficient nuclear fuel that will power many next‑generation advanced reactors. The agreement formalises cooperation on technical expertise, safety standards, engineering design, and regulatory compliance, helping to accelerate deployment of advanced nuclear projects in both countries.

Why it matters: HALEU‑fuelled reactors are expected to play a critical role in delivering low‑carbon, secure energy, supporting industrial growth and emerging technologies such as AI. The partnership also supports efforts to reduce reliance on Russian nuclear fuel, strengthen resilient nuclear supply chains, and position the UK and US as global leaders in advanced nuclear energy.

Employment Rights Bill becomes Law

December 2025

Quick Overview: The UK Government’s Employment Rights Bill received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025. The Act represents the most significant reform of UK employment law in decades, with wide‑ranging changes covering unfair dismissal, trade union activity, family leave, statutory sick pay, and collective redundancy protections. While most provisions will be introduced on a phased basis through 2026 and 2027, the legislation marks a major shift in the UK’s labour market framework and will require employers to prepare for substantial regulatory change over the year ahead.



BAB Policy Agenda 2026 Release

30 January 2026

Overview: BAB has published its 2026 Policy Agenda, setting out business‑led recommendations to strengthen a strong and secure US–UK economic partnership at a time of heightened geopolitical uncertainty, evolving trade policy, and growing national security considerations. The Agenda outlines BAB’s priorities for the year ahead and will guide its engagement with policymakers on both sides of the Atlantic.

Key pillars: The 2026 Policy Agenda is structured around four core pillars:

• The Essential Security Partnership: calling for deeper U.S.–UK cooperation in defence, aerospace, and space, including accelerated delivery of AUKUS (particularly Pillar II), coordinated export controls, sanctions cooperation, and greater focus on supply‑chain resilience and critical minerals.
• The Environment for Business Investment: urging governments to move from strategy to delivery on industrial policy, maintain predictable and competitive tax and regulatory regimes, improve talent mobility through streamlined visas and mutual recognition of qualifications, and support energy policies that underpin competitiveness.
• Transatlantic Trade and the Economic Prosperity Deal (EPD): advocating for full and timely implementation of the EPD, reduction of tariffs and non‑tariff barriers (including steel and aluminium), and renewed momentum on the Technology Prosperity Deal.
• Sector Priorities: highlighting targeted engagement across technology and digital, life sciences, financial and professional services, food and drink, defence, and energy and sustainability, with a focus on regulatory predictability and deeper industrial integration.

Read more: See our full press release here and the full Policy Agenda here.

BAB Analysis of Progress Made to Strengthen US-UK Defence Collaboration

5 February 2026

Overview: BritishAmerican Business has published a new analysis assessing progress made over the past year in strengthening US–UK defence collaboration, following the publication of its 2025 white paper "Stronger Together: How US–UK Cooperation Contributes to the Revival of the UK’s Defence Industrial Base". The analysis evaluates how far the UK has advanced against the paper’s recommendations, drawing on commitments set out in the 2025 Defence Industrial Strategy (DIS) and the Strategic Defence Review (SDR).

What’s changed: BAB welcomes tangible progress by the UK Government, particularly steps taken by the Ministry of Defence to streamline procurement processes, strengthen supply‑chain resilience through stockpile development, and advance cooperation under AUKUS. The analysis highlights growing recognition of the deep integration of US defence companies within the UK defence ecosystem and their role in supporting jobs, skills development, innovation, and regional growth.

Next steps: The analysis identifies further opportunities to build on this momentum, including formalising US–UK industry engagement mechanisms, expanding skills transfer and workforce development initiatives in 2026, and ensuring that any proposed defence offset regime does not deter continued US investment in the UK. BAB encourages continued dialogue between government and industry to fully leverage the transatlantic defence partnership as the UK modernises its defence industrial base.

Read more: The full BAB analysis is available on our website here.

Business and Trade Select Committee Evidence Session

10 February 2026

Overview: Our CEO Duncan Edwards gave oral evidence to the UK Parliament’s Business and Trade Select Committee, following the Committee’s invitation for BAB to provide an update on the state of play in UK–US negotiations across the Economic Prosperity Deal (EPD) and Technology Prosperity Deal (TPD).

What we said: A transcript will be available via Hansard in due course.

Thank you for reading this month's Policy and Trade Update. If you have any feedback or comments please contact us.

BAB participates in and offers policy and trade support to the BritishAmerican Business Network, a group of over 20 independent trade organisations across North America and the U.K. If you would like to learn more about the network and its activities, please visit our website.



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