Economic interdependence, shared values and many common interests ensure that the UK’s relationship with the US continues to grow. With the improvement in the US economy, we are once again seeing a significant increase in US companies looking to enter or expand their existing business activity in Britain. UK products enjoy a good reputation for their quality in the US.

Trade matters. Our research shows that businesses that trade internationally tend to be more productive and competitive than those that do not. They grow more quickly, spend more money on innovation, are more capital intensive, and their productivity is higher.

The UK has a lot to offer as one of the world’s most open trading nations, the second largest investor in the world and a key player in the European economy. We have a flexible, highly-skilled workforce, award-winning designers, world-class managers and leaders, and businessfocused scientists backed by record levels of public funding. Taken together, it is no wonder that the world’s top companies and investors choose the UK over any other location in Europe.

We know that building a strong transatlantic economic relationship is central to our future economic growth and it is vital for Europe’s future prosperity as well. That is why we are urging our European Union (EU) partners to speed up economic reform. That means more flexible, outward-looking economic policies and breaking down barriers to ensure a better trading relationship with the US. An expanded EU provides enormous opportunities for inward investors, with location in the UK providing access to a single market of 455 million people.

The type of investment we are attracting reflects our strengths as a knowledge economy. The UK is the top European investment location for research and development, headquarters operations, software, electronics, pharmaceuticals, financial services and telecommunications. The US and the UK are the world’s two largest outward investors, and we are the largest investors in each other’s economies. In 2003, the UK continued to be the leading foreign investor in the US with investment worth $23bn, representing 17% of total foreign direct investment into the country. The UK was the sixth largest supplier of goods into the US and the UK was the fourth largest market for US exports.

Britain and the US have benefited greatly from our close business ties. I will continue to work with BritishAmerican Business Inc to develop and maintain the strong partnerships between our two countries.