U.S. Threatens to Block U.K. From Global Procurement Pact

The U.S. is threatening to block the U.K. from a 46-nation public procurement agreement, a move that would deny British companies from accessing a near $2 trillion marketplace after leaving the European Union, according to two officials with knowledge of the situation.

The U.K. will apply to rejoin the Government Procurement Agreement, a $1.7 trillion trade accord that governs global appropriation rules, since it will lose its membership after Brexit in March. U.S. negotiators have told their British counterparts that their application is outdated and needs to be revised, said the officials, who asked not to be identified because talks are ongoing.