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Agriculture, Biofuel, Meat
May 08, 2025
HIGHLIGHTS
US would gain $700 million from ethanol exports, $250 million from agricultural exports
UK eliminates restrictive fuel blend caps, aligns biofuel standards with US
US beef, poultry win meaningful access by removing tariffs, non-tariff barriers.
The new trade agreement between the US and UK, announced May 8, is being hailed as a major breakthrough for US ethanol, beef and poultry producers, unlocking over $950 million in new export opportunities and tearing down decades-old trade barriers.
The deal unlocks more than $5 billion in new market access, including a transformative $700 million opportunity for US ethanol and over $250 million in agricultural exports such as beef and poultry, the White House said in a statement.
After years of being shut out or severely restricted by tariff walls and non-science-based standards, American producers are finally gaining meaningful access to one of the world's largest and wealthiest consumer markets.
For US ethanol producers, the deal couldn't come at a better time. It paves the way for over $700 million in new exports by eliminating restrictive fuel blend caps and aligning standards with US biofuel specifications.
According to US Energy Information Administration, the US in 2024 exported 5.81 million barrels of ethanol to the UK -- accounting for 12.68% of total export volumes. Through February 2025, only 541,000 barrels, or 6.73% of 2025 ethanol exports, have been sent to the UK.
Facing mounting pressure to decarbonize its energy sector, the UK is expected to lean heavily on US corn-based ethanol to meet renewable energy targets. Streamlined customs procedures and mutual recognition of fuel quality standards are expected to make US ethanol not just viable, but preferred.
US beef exporters are set to benefit from over $250 million in new access as the UK agrees to reduce — and in some cases eliminate — tariffs that previously reached as high as 125%.
The agreement also dismantles longstanding non-tariff barriers, such as UK bans based on hormone-use policies and outdated risk standards. It ensures that future standards will be science-based, reducing the risk of arbitrary restrictions and increasing the predictability that exporters need to invest and expand, the White House said.
While poultry was not highlighted as prominently in initial summaries, industry analysts see the deal's impact as equally promising.
The UK has long resisted US poultry imports due to differences in processing standards, particularly around antimicrobial rinses.
The new agreement makes room for technical consultations and joint work toward regulatory alignment, steps viewed by many as a prelude to broader market access.
The agreement commits both governments to enhancing cooperation on agriculture and bioenergy, and establishes a framework for regular review and adjustment of trade rules, the White House said. By removing discriminatory practices and focusing on transparent, evidence-based standards, the US and UK are setting a precedent for how food and fuel trade can thrive without compromising safety or sovereignty, it said.
US President Donald Trump hailed the agreement as a victory for the American heartland.
"We're putting our farmers, our ethanol producers, our ranchers — our entire agricultural community — first," he said, according to the statement. "This is real trade reciprocity. It's going to create jobs and fuel economic growth."