In this new century, we take on new challenges and address the legacies of the 20th century. Whether these challenges and issues are economic, disaster relief, or political in nature, alliances and co-operation with our key international partners are more important than ever before.

The US remains the UK’s most important economic partner and, as a study conducted in 2004 by Ernst & Young confirms, the UK is the largest recipient of US foreign direct investment (FDI) in terms of numbers of projects.

As the importance of FDI – and especially US investment in the UK’s economy – testifies, the future wellbeing of both our countries depends on strengthening our existing links and forging new ones. This is a central goal of UK Trade & Investment’s (UKTI) mission here in the US.

Myself and colleagues, at posts throughout the US, are committed to helping British companies develop their businesses and to attracting, retaining and increasing US investment in the UK. The UK’s reputation for innovation and as the best place to do business in Europe gives us an excellent launch pad for our work here.

In November 2004, Peter Mandelson, a former member of the Blair government, was appointed the European Union’s (EU) new trade commissioner. He will be negotiating international trade relations on behalf of all EU member states, a market of well over 400 million people. Mandelson and others this year are working to reform the European economy, to advance global trade and further extend its benefits to the developing world through the World Trade Organisation’s Doha Development Agenda, and to strengthen the EU–US transatlantic economic relationship. This is also UK’s agenda.

What we hope to achieve in 2005 rests significantly on strengthening our existing alliances, seizing the opportunities afforded by our Presidency of the G8, and of our Presidency of the EU in the second half of the year. Both will mean working even more closely than usual with the US. This partnership is particularly vital with the G8 agenda, where our two main priorities are climate change and Africa.

A key aspect of tackling climate change is the promotion of cleaner and more efficient energy technologies, and their uptake in emerging economies in the developing world. This requires collaboration among all our partners – both business and political.

Decisions taken now will affect energy use for the next 30 years. We cannot delay action. Our goal in 2005 is to achieve international agreement on the faster introduction of these smart technologies. We will use our significant research and business links, both in the US and Europe, to achieve our goals, for this is not something the UK – or US – can accomplish in isolation.

UKTI USA is playing an important role in the implementation of the climate change agenda through our work on business-related renewables initiatives. Working with US and UK business, UKTI’s activities are at the centre of efforts to reach Britain’s goal of cutting carbon dioxide emissions by 60% by 2050. Through a series of events and missions on both sides of the Atlantic, UKTI’s efforts are introducing the US renewables industry to new business opportunities, which – as the British government drives a potent policy agenda aimed at facilitating market-based solutions in renewable energy – are making the UK a world leader in renewables.

As for our second G8 priority, Africa, the problems facing that continent are well known: poverty, ineffective and unstable governments, conflict, debt, the AIDS pandemic. Here our aims are equally clear: to promote conflict prevention and resolution; to foster good governance; to combat poverty with sustainable development; to improve human rights and to work towards the eradication of disease.

Again, UKTI USA is working closely with our policy teams in our Embassy in Washington to promote our agenda to our business contacts across the US. And we are in regular dialogue with US and UK pharmaceutical companies, which are pledging life-saving medical supplies and funds to help combat the growing crisis of AIDS.

Examples such as these underpin the power of partnership and the progress achieved by co-operation and the pooling of influence and resources.

We look forward to working with BABi on these important and challenging goals for 2005.