US - Great Britain Economic Relations

Abstract

This article covers the major trends of United States and Great Britain economic relations. Economic cooperation between these countries is closely connected with the phenomenon of “special relationships” in the political field. Sources and main points of the “special relationships” are being analyzed in the article. British departure from the European Union created possibilities to develop further economic cooperation between the United States and the United Kingdom. Negotiations on free trade agreement started under Donald Trump administration but were frozen under current US administration. In the result UK proved to be between Scylla and Charybdis. The article covers major trends of structural changes in mutual trade and investment flows during last decade. Statistical analysis shows that oil and natural gas are the major articles of US export to Great Britain. United Kingdom is exporting transport equipment, chemicals and different types of machinery. Different services (professional, business, finance and science) are also important for mutual cooperation. Current investment positions of both countries are being analyzed. Great Britain is interested to get American direct investment in different fields. UK big holding companies are the major target of US direct investors. British equities are also in great demand on the global financial market. Most of British capitals are invested in manufacturing companies of the US. Current situation with free trade negotiations is being analyzed. President John Baiden administration realizes conservative economic policy. US conservative policy is aimed to support national producers. In view of the above it is highly likely that trade negotiations between US and UK will not be in progress for a long period.