US Notifies UK of Suspension of 'Technology Prosperity Deal' Implementation

Seen as a Sign of US Discontent in Trade Talks
Demands for Easing Non-Tariff Barriers
UK Maintains Food Safety Standards
'Digital Services Tax' Targeting Big Tech Also a Key Issue

The United States has suspended the Technology Prosperity Deal (TPD) it signed with the United Kingdom. This move is being interpreted as the Trump administration pressuring the UK to fulfill its commitments in trade negotiations.

According to the Financial Times (FT), the United States recently notified the UK of the suspension of the TPD. The TPD was an agreement signed during President Donald Trump's state visit to the UK in September. Its goal was to promote bilateral cooperation in areas including artificial intelligence (AI), quantum computing, and nuclear energy.

The background to the US decision to suspend the TPD appears to be dissatisfaction with the progress of trade negotiations with the UK. The TPD, as agreed upon by the US and the UK, consists of six categories: tariffs, non-tariff barriers, digital trade, strengthening economic security cooperation, commercial considerations and opportunities, and other pending issues.

Among these, the UK is said to be passive regarding non-tariff barriers. While the UK agreed to import 13,000 tons of US beef annually without tariffs, it has not made specific commitments on the mutual recognition of food and agricultural standards, which the US has demanded. The UK currently maintains its existing policy of not relaxing its agricultural and food safety standards.

The digital services tax imposed on US IT companies is also a contentious issue. President Trump warned of possible retaliation against countries imposing a digital services tax, but the UK drew a line, stating that "the digital services tax is not distorting the essence" of the issue.

The UK imposes a 2% digital services tax on the revenues of US IT companies such as Amazon, Google, and Apple, raising approximately 800 million pounds (about 1.5 trillion won) in annual tax revenue.

A spokesperson for the UK government stated, "The special relationship with the United States remains strong," and added, "The UK is committed to ensuring that the TPD provides opportunities for the people of both countries."