Negotiations on a technology agreement between the UK and the US have stalled due to obstacles in wider trade talks between the two sides.
Deal for Tech Prosperity – which was declared “historic” when it was unveiled during US President Donald Trump's state visit in September – both countries pledged to cooperate in areas such as artificial intelligence.
However, talks on the agreement are now being delayed by US concerns over what they see as wider UK trade barriers.
A government spokesman said “our special relationship with the US remains strong and the UK is firmly committed to ensuring the Tech Prosperity Agreement provides opportunities for hardworking people in both countries.”
The New York Times – which first reported this story – said there were “broader differences” between the two sides, including over digital and food safety regulations.
The UK government has not commented on these specific allegations. The White House did not respond to the BBC's request for comment.
When the deal was announced, the government was keen to highlight the benefits it said it would bring.
“This Tech Prosperity Agreement marks a generational change in our relationship with the US, shaping the future of millions of people on both sides of the Atlantic,” the Prime Minister said. Sir Keir Starmer said this in a statement.
Technology Minister Liz Kendall said the partnership would “change lives across Britain” and was “a vote of confidence in the UK's fast-growing artificial intelligence sector.”
At the same time the deal was announced, a number of US technology companies announced massive investments in the UK.
In total, tech giants including Microsoft, Nvidia and Google have committed £31 billion in planned spending.
These investment plans are not believed to be affected.
Google, Microsoft and Nvidia have also been approached for comment, but the companies have not yet responded to the BBC.
NVIDIA CEO Jensen Huang said in September His company's investment in Britain reflected his belief that it could become an “artificial intelligence superpower” – an ambition championed by Sir Keir's government.
It said the investment announced by tech firms along with the Tech Prosperity Deal would be used to expand artificial intelligence infrastructure such as data centers across the UK.
The technical pact was documented in Memorandum of Understanding (Memorandum of Understanding), which states that both countries will seek cooperation in the fields of artificial intelligence, quantum computing and nuclear energy.
It said this could include working together to build “powerful quantum machines”, supporting innovation in artificial intelligence hardware and exploring potential new uses for advanced nuclear energy.
But the Memorandum of Understanding also says that any proposals are non-binding and that it “will only come into force in conjunction with significant progress made in formalizing and implementing” the broader US-UK Economic Prosperity Agreement signed in May.
The Trump administration has tried to rewrite global trade rules, imposing tariffs on many countries, including traditional allies such as Britain, and pushing for new agreements it says would be fairer to the United States.
For Britain, this meant bargaining over various sectors of the economy, a process that led to agreements on cars and more recently, pharmaceuticals.
However, the BBC understands a proposed deal to scrap tariffs on UK steel exports to the US has been postponed indefinitely.
Ellie Renison, director of communications firm SEC Newgate UK and a former government trade adviser, said the current tech impasse reflects the “slightly fragmented approach” of the US and UK to striking trade deals.
“Instead of doing everything at once, different areas are tied to different parts,” she told the BBC, noting how concerns over individual trading zones could now influence technology agreements.
While there are questions about what potential obstacles to promised investment by US tech companies in the UK could mean, Ms Renison added, it was unlikely it would be more than “a little posturing in the wider negotiations”.
