Dec 15 - The United States has paused a $40 billion technology agreement with Britain, officials said, following concerns in Washington over London's approach to digital regulation and food standards.

The “Tech Prosperity Deal,” covering artificial intelligence, quantum computing, and civil ‍nuclear ​energy, was agreed during President Donald Trump's state visit to Britain ‍in September.

Britain hailed the visit as proof of close ties and Prime Minister Keir Starmer's ability to work with Trump on trade ​and technology.

Britain ​became the first country to agree in principle to lower some U.S. tariffs in May, but implementation has been slow. Talks on sectors such as steel stalled, though the two sides agreed a framework pharmaceutical ‍deal earlier this month.

British officials confirmed on Tuesday that the U.S. has paused implementation of the tech deal. The ​New York Times, which first reported the move, ⁠said U.S. officials were frustrated by Britain’s online safety rules, digital services tax, and food safety restrictions.

BRITAIN SAYS IT IS COMMITTED TO WORKING WITH UNITED STATES

British ministers say the May tariff deal allowed higher U.S. beef exports without compromising UK standards and insist ​digital regulations and tax will not be negotiated away.

"Our special relationship with the U.S. remains strong and the UK is firmly committed ‌to ensuring the Tech Prosperity Deal delivers opportunity ​for hardworking people in both countries," a spokesperson for the UK government said.

Under the Tech Prosperity Deal, Britain and the United States agreed to work together on quantum computers and artificial intelligence, while the likes of Microsoft, Google, Nvidia and OpenAI pledged to invest tens of billions of dollars in Britain.

The White House did not immediately respond to Reuters' request for comment.

The U.S. is Britain's largest trading partner, and ...