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recent weeks have seen renewed uncertainty around tariffs, including the US administration’s proposed (and then withdrawn) Greenland related tariff measures, to which BAB responded by highlighting the risks of escalation and unintended consequences for allied economies.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.

HEADLINES

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.

ADDITIONAL TOPICS

POLICY WORK

BAB Policy Agenda 2026 Release

30 January 2026

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

5 February 2026

TRADE UPDATES

Business and Trade Select Committee Evidence Session

10 February 2026

View the full February BABN Policy and Trade Update here