Maritime industry expo highlights value of new Mutual Recognition Agreement for trade with USA

18 April 2019

Following hot on the heels of a new Mutual Recognition Agreement (MRA) on marine equipment, the UK and the USA held a Marine Technology Small and Medium-Sized Enterprise (SME) best practice exchange at the Ocean Business 2019 exhibition in Southampton on 8 April.  The “exchange” highlighted many new opportunities for trade, and also explored how firms can take advantage of the new MRA.  A sectoral business-to-business contact group has also been formed, under the leadership of the Society of Maritime Industries for the UK and The Maritime Alliance for the US.

In February 2019 the UK and the USA signed a new MRA covering electromagnetic compatibility (EMC), telecommunication equipment, and good manufacturing practice (GMP) of pharmaceuticals.  The two countries signed a further, separate MRA covering trade in marine equipment.

These bilateral agreements maintain the effects of the current EU-US MRAs; they can take effect if the UK leaves the EU with no deal, or at the end of an ‘implementation period’.  They help facilitate trade between the two nations and mean that UK exporters can continue to ensure goods are compliant with technical regulations before they depart the UK, saving businesses time, money and resources. American exporters to the UK benefit in the same way.

For instance, the UK-US MRA on marine equipment explains the conditions under which each country will accept conformity assessment results (“Certificates of Conformity”) from the other. It means that designated UK marine equipment can be tested in the UK against US regulations. The goods can then be used on US ships without additional testing in the US.  It also means the same for designated US marine equipment destined for the UK.

The full text of these two agreements, along with explanatory memoranda can be found here:

Trade between the two countries covered by the first of these MRAs is valued at up to £12.8 billion, based on recent average trade flows. UK exports are estimated to comprise £8.9 billion of this amount, more than a fifth of total UK goods exports to the US.  By far the largest part of this figure comes from exports of pharmaceuticals from the UK to the US.[1]

Trade in marine equipment between the UK and the USA was worth an estimated $344 million[2] in 2018. 

Following soon after the signing of the MRA on marine equipment, the UK and the U.S. held a Marine Technology Small and Medium-Sized Enterprise (SME) best practice exchange at the Ocean Business 2019 exhibition in Southampton on 8 April.  The “exchange” highlighted many new opportunities for trade, and also explored how firms can take advantage of the new MRA.  A sectoral business-to-business contact group has also been formed, under the leadership of the Society of Maritime Industries for the UK and The Maritime Alliance for the US.

[1] Figures from https://www.gov.uk/government/news/uk-and-usa-agree-to-continue-mutual-recognition-agreement

[2] Figure from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/april/joint-statement-uk-us-marine

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