Technology Trade Agreements

As President Trump sets down on British soil… some exciting news for UK tech. Announced today is the UK-US Tech Prosperity Deal - the first transatlantic tech agreement of its kind. Here what that means for us: 🇬🇧 More than £31 billion in AI and tech investment committed to the UK, led by Microsoft, Google, OpenAI, NVIDIA, CoreWeave and more 🧠 A Stargate UK AI supercomputing project from Nscale, in partnership with OpenAI and Microsoft 🧬 Quantum & AI to unlock faster drug discovery and cancer breakthroughs ⚛️ A new civil nuclear agreement to speed up clean, domestic energy 📍 North East England named an AI Growth Zone, with 5,000+ new jobs forecast 🛠️ A boon for infrastructure, with the UK’s largest supercomputer set to be built in Loughton, and a fresh wave of Nvidia GPUs and ARM chips arriving to power British businesses A huge congratulations should go out to the teams who have worked on this. It’s a much-needed step change in the relationship with our friends across the pond. Make no mistake - we need these kinds of deals with our biggest tech giants. This is significant investment, and the impact will be felt.    But here’s the next challenge… how do we make sure UK startups and scaleups actually benefit from these deals ? As Mike Bracken argued in yesterday’s FT, the UK risks squandering its AI opportunity. After decades of outsourcing, we have world-class researchers and founders, but a public procurement system that still favours the same global platforms. In AI, we’re at risk of becoming users, not makers. There are lessons from Europe. France is backing Mistral. Germany is funding Helsing. Even India has launched its own national AI translation layer. The UK’s public-private partnerships must now prioritise British talent: •⁠ ⁠Capital, at scale •⁠ ⁠Access to public data and compute •⁠ ⁠Preferential procurement for sovereign tech •⁠ ⁠A real strategy for growing (not just attracting) frontier AI companies This deal lays the foundation. But the real opportunity is in what we build next. Data centres yes, but also new national champions. The talent is here. Let’s back it !

Nvidia and AMD have struck a significant deal with the U.S. government, marking a major shift in how advanced technology is sold to China. This isn't a fine, but a new kind of "tax" on tech exports. The agreement allows Nvidia and AMD to sell their special China-only AI chips (like the H20 and MI308) in the Chinese market. In return, they must give 15% of the revenue from these sales to the U.S. government. Without this deal, sales would be blocked entirely under existing export controls. The "Why" The U.S. has long feared China using advanced chips for military purposes. This new approach allows the U.S. to collect revenue while still exerting control, moving beyond a simple ban. Impact on Investors & Businesses Good News for Investors: This deal prevents the loss of a massive market for Nvidia and AMD. Share prices have already seen a positive bump. The Catch: The 15% revenue cut is substantial. Companies may need to raise prices for Chinese customers to maintain profit margins. For Chinese Customers: They may face higher costs for AI chips, which could slow down their AI development projects. This arrangement turns export controls into a new source of government revenue, a precedent some experts find risky. It could also provoke China to impose its own restrictions in key sectors, escalating global tech tensions. The deal's long-term stability is uncertain, as the 15% rate could change. This is a powerful example of how global politics, business strategy, and national security are becoming increasingly intertwined, affecting everything from market access to the value of your investments. #Tech #AI #Nvidia #AMD #USChina #ExportControls

🚀 New Zealand's tech exporters are hitting walls that traditional exporters never face. While our dairy and wine industries deal with tariffs, our fastest-growing export sector - #technology - is being held back by a different set of barriers entirely. NZTech has just submitted feedback to MFAT on reducing non-tariff barriers (NTBs) that are limiting our digital exporters' ability to scale globally. These aren't your typical trade barriers: ❌ Restrictive visa rules that prevent our talent from supporting overseas clients ❌ Inconsistent IP protections across markets ❌ Complex regulations for establishing local presence ❌ Fragmented digital standards that create compliance nightmares Here's what many don't realise - there's a crucial difference between digitally-enabled trade (like e-invoicing for traditional exports) and digital exports (SaaS, AI, gaming platforms). Current trade agreements support the former well, but our pure-play digital exporters need more tailored, enforceable rules. Our recommendations to government include developing a coordinated NTB strategy covering AI and privacy regulations, ensuring greater alignment across digital trade agreements, and properly resourcing MFAT to tackle these 21st-century trade challenges. The tech sector is already New Zealand's fastest-growing export category. But imagine what we could achieve if we removed these invisible barriers that are holding back our digital innovators from competing on a level playing field globally. Time to update our trade toolkit for the digital age. Across the Group, we’re beginning work on our Tech Manifesto and our recommendations for solving issues like these will definitely be part of it. Any other barriers to tech growth that you can think of? Please let me know. 🔗 Read our full submission: https://lnkd.in/gST_Wz6Y NZTech #DigitalExports #TradePolicy #TechForGood #Innovation #DigitalEconomy Stephanie Honey Adrian Smith Chrisana Archer Delphine Ducaruge Bridget Snelling Stuart Dickinson Nick McDonnell Shane Sampson Matthew Gerrie Graham Grant Grace Gown Lance Burgess Andrew Bowater Mark Heine Mitchell Pham ONZM FCPA Rachel Maidment

The first-ever CTA Trade Week took place at a pivotal moment for U.S. trade policy—and the momentum is real. With yesterday’s announcement of a U.S.-UK trade deal, signs of possible de-escalation with China, and growing bipartisan interest in tariff reform, we’re seeing cracks in the years-long "tariff fever"—and that's good news for: ✅ U.S. consumer tech companies ✅ U.S. manufacturing ✅ U.S. innovation   Trade is a pillar of CTA’s Innovation Agenda. A pro-innovation trade policy empowers U.S. companies to compete globally and deliver cutting-edge technologies to consumers at home. Over three days of high-impact engagement with Capitol Hill, the Administration, and the press, we surfaced key takeaways: 🔹 Certainty drives innovation. Unpredictable trade policy makes it harder for tech companies to invest and grow—especially startups and small businesses. Lawmakers on the Hill get this. 🔹 Tariffs are crushing small businesses. There’s growing recognition that many can’t survive the burden. Momentum is building for a small business exclusions process under IEEPA and Section 232. 🔹 Deals create clarity. Layered tariffs (IEEPA, 232, 301) create compliance chaos. Even with lower rates, the complexity is a drag on competitiveness. Future trade deals must remove—not just repackage—barriers. 🔹 Transparency matters. Companies want to comply. We’re urging longer comment periods, more stakeholder input, and clearer guidance from agencies. CTA fueled the national trade conversation this week with: ➡️ An updated tariff impact study (https://lnkd.in/eCb6jtCR) ➡️ A new white paper on IEEPA/Section 232 tariffs (https://lnkd.in/eVefAeb4) ➡️ A white paper on legacy chips in consumer tech (https://lnkd.in/ehiJiScz) ➡️ Formal comments on the Section 232 semiconductor probe (https://lnkd.in/evW5j8MM) ➡️ Gary Shapiro's latest trade op-ed in RealClearMarkets (https://lnkd.in/ekjfvRyk) We even took the message to the DCA airport today to celebrate the U.S.-UK agreement and our support for open trade. At the Consumer Technology Association, we know the U.S. can lead the world in innovation—if we get trade policy right. But if we wall ourselves off with tariffs, that potential shrinks. Here’s hoping that by #CES2026, the landscape is clearer and a little less… tarrifying! #Trade #USUKTrade #Innovation #Tariffs #SmallBusiness #IEEPA #Section232 #Manufacturing #Semiconductors #GlobalTrade #CTA #CES #TechPolicy #WashingtonDC #FutureOfTech

The reward for Ontario de-risking and deploying the GE Hitachi Nuclear Energy BWRX-300 SMR rests on our potential to get a piece of the pie in future exports of the technology. However this US origin technology is subject to U.S export controls which could be used by the Americans to take our piece of the SMR pie for themselves. So lets get a deeper understanding. What is a “123 Agreement”? A 123 Agreement refers to a Section 123 agreement of the U.S. Atomic Energy Act of 1954, which governs peaceful nuclear cooperation between the U.S. and other countries. The U.S.-Canada 123 Agreement allows for the transfer of U.S.-origin nuclear material, equipment, and technology to Canada for peaceful purposes. These agreements include nonproliferation assurances and consent rights for subsequent re-transfer of material or technology. 📦 What Are "Re-exports"? Re-exports (also called retransfers) occur when: A country (e.g., Canada) receives U.S.-origin nuclear technology, material, or components, and then exports that material or technology to a third country (e.g., Poland, or Estonia). 🚫 U.S. Consent Rights = Veto Power Under the 123 Agreement, the U.S. must approve any such re-export or retransfer. This gives Washington effective veto authority over Canada's ability to: 1.) Export BWRX-300 reactor components or transfer any associated technology (designs, software, training materials) that originated in the U.S. If Canada aims to become a major player in BWRX-300 exports, the U.S. can: 1.) Deny or delay export authorizations for political, commercial, or strategic reasons. 2.) Insist on joint ventures on American terms limiting Canada’s autonomy. 3.) Create regulatory friction, slowing Canada’s ability to participate in international projects. These consent rights are not just legal technicalities—they are tools of geopolitical leverage. If Canada aims to be a major supply chain source for a BWRX-300—fabricating major components and leading deployment—it will rely on American good will as this is a U.S.-origin technology. Significnat involvement in an international BWRX-300 project could trigger U.S. consent requirements under the U.S.-Canada 123 Agreement, because of the embedded U.S. content. This gives the United States legal and practical leverage over Canadian nuclear exports— potentially limiting Canada's ability participate on favourable terms.

Make no mistake, the US–UK tech agreement is an excellent deal. Not only does it unlock substantial investment in the UK, but it also helps build closer ties between the two countries, opening up new business opportunities and bringing shared scientific and technological leadership to the forefront of the relationship. We are witnessing the creation of a new “special tech relationship”. Importantly, this also shows that, behind the headlines, there remain strong connections between the two nations. Right now, a new geopolitical order is being built with technology at its centre. Digitalisation can no longer be separated from geopolitics. As this new geopolitical reality continues to unfold, developing and accessing hard, cutting-edge technological capabilities is perhaps more important than ever. Building new tech alliances will be a key part of maintaining influence, generating prosperity, and ensuring security both domestically and internationally. This deal reflects this reality and paves the way for increased cooperation between the two nations on emerging technologies - AI, quantum, and nuclear - that will be crucial in shaping our shared future. In recent research for the Tony Blair Institute for Global Change, we argued that the UK should focus on attracting investment into its AI infrastructure and prioritising the deployment and adoption of AI across all aspects of the economy. This plays to the country's strengths. The UK is home to world-leading universities, deep pools of talent, and a vibrant startup ecosystem. The U.S., on the other hand, is delivering infrastructure, hardware, AI capabilities, and much-needed capital. This deal brings together these shared capabilities and will help turbocharge technological innovation, create jobs, revolutionise science, promote growth, and showcase what is possible to the world by harnessing the capabilities of technology. For more on TBI's research, check the links below. On the AI Growth Zones: https://lnkd.in/e_zTC9T6 On nuclear cooperation (Tone Langengen): https://lnkd.in/eTntVuTn On quantum: Guy Ward Jackson and Kengo S. are leading an important new strand of research on the topic. https://lnkd.in/eXhVUtpU

Tariff Update: US & EU Announce New Reciprocal Trade Framework Three weeks ago, the US and EU announced their new reciprocal trade deal. At the time, framework included: → New 15% base tariff rate → $750B in US energy procurement → $600B EU investment in US industries → 15% tariff on EU automobiles Today, the US and European Union unveiled a more detailed Framework Agreement on Reciprocal, Fair, and Balanced Trade. Here’s what changed: - Tariff scope clarified: MFN-only tariffs confirmed for aircraft, pharma, natural resources, and cork. - Autos & parts: Section 232 tariffs adjusted-no extra duty if MFN ≥15%, capped at 15% combined if MFN <15%. - Technology: EU committed to at least $40B in US AI chips for data centers. - Agriculture: Expanded US access for dairy, pork, seeds, processed foods, and seafood (including lobster). - Compliance & ESG: EU agreed to address US concerns on deforestation, carbon border taxes (CBAM), and corporate due diligence (CSDDD/CSRD).   Why it matters for Supply Chains: This framework isn’t just about tariffs. It ties together energy, tech, defense, and sustainability into one transatlantic playbook…shaping procurement, sourcing, and compliance strategies for years ahead. → Joint Statement linked in the comments. #Tariffs #EUTrade #SupplyChain