The <a href="https://www.thenationalnews.com/tags/uk" target="_blank">UK</a> and the <a href="https://www.thenationalnews.com/tags/us/" target="_blank">US</a> state of Texas will sign an agreement on Tuesday for closer trade co-operation as the <a href="https://www.thenationalnews.com/tags/uk-government/" target="_blank">government</a> pursues state-level deals in the absence of a wider free trade agreement with the America. The agreement will be formally signed in Westminster on Wednesday by Trade Secretary Kemi Badenoch and Texas Governor Greg Abbott. Although not a trade deal, because US states do not have the power to sign them, it is similar to a preliminary agreement designed to improve co-operation between businesses in Britain and Texas and tackle regulatory barriers to trade. “I’m delighted to welcome Governor Abbott to the UK for this landmark signing," Ms Badenoch said. “Today’s signature with Texas marks the UK’s eighth US state-level pact, meaning UK firms now have access to states with a combined GDP of £5.3 trillion [$6.8 trillion] – equivalent to a quarter of the whole US <a href="https://www.thenationalnews.com/tags/economy/" target="_blank">economy</a>. "This shows our US state-level strategy is working and really delivering for British businesses.” The agreement is aimed particularly at the <a href="https://www.thenationalnews.com/tags/energy/" target="_blank">energy</a> sector, as well as life sciences and business services. Even before the signing of the agreement, British businesses had already enjoyed success in Texas. The government’s BioBridge collaboration with the Texas Medical Centre has helped 30 UK life sciences companies to grow their business in the state. “As our ninth-largest trade partner, the United Kingdom plays a critical role in the Texas economic juggernaut," Mr Abbott said. “Strengthening the bond between Texas and the United Kingdom is crucial for our shared economies to prosper. “By signing this Statement of Mutual Co-operation today, we will further promote economic growth on both sides of the Atlantic. “Texas is the economic engine of America, where entrepreneurs from around the globe can cast a vision and know they can achieve it. "Working with our British partners, we will chart a greater path towards success and opportunity, and create an even more robust economic partnership.” Achieving a free trade agreement with America had been part of the <a href="https://www.thenationalnews.com/tags/conservative-party/" target="_blank">Conservatives’ </a>2019 manifesto. But progress towards a deal has stalled, with Ms Badenoch blaming a lack of interest on the part of the current US administration. Instead, the UK has pursued state-level deals, including with Indiana in May 2022 and most recently with Florida in November last year. Although these agreements do not lower tariffs as a free-trade deal would, they can provide some help for businesses through recognising UK qualifications or addressing state-level regulatory issues.