The United Kingdom is one of the United States' closest allies, and British foreign policy emphasizes close coordination with the United States. Bilateral cooperation reflects the common language, ideals, and democratic practices of the two nations. Relations were strengthened by the United Kingdom's alliance with the United States during both World Wars, and its role as a founding member of NATO, in the Korean conflict, and the Persian Gulf War. The United Kingdom and the United States continually consult on foreign policy issues and global problems and share major foreign and security policy objectives. In the United Nations, the United Kingdom is a permanent member of the Security Council.

The United Kingdom is a founding member of the North Atlantic Treaty Organization (NATO) and has been a member of the European Community (now European Union) since 1973. The United Kingdom is one of NATO's major European maritime, air, and land powers and ranks third among NATO countries in total defense expenditure.

The British Armed Forces are charged with protecting the United Kingdom and its overseas territories, promoting Britain's wider security interests, and supporting international peacekeeping efforts. The 44,000-member Royal Navy is in charge of the United Kingdom's independent strategic nuclear arm, which consists of four Trident missile submarines. The Royal Marines provide commando units for amphibious assault and for specialist reinforcement forces in and beyond the NATO area. The British Army with a reported strength of 110,000 in 1999, including 7,600 women, and the Royal Air Force with a strength of 55,000, along with the Royal Navy and Royal Marines, are active and regular participants in NATO and other coalition operations. The United Kingdom stood shoulder to shoulder with the United States following the September 11th terrorist attacks, and its military forces participated in the war in Afghanistan. The UK was the United States' main coalition partner in Operation Iraqi Freedom and continues to have more than 10,000 troops deployed in Iraq to help stabilize and rebuild the country. Under UNSCR 1483, the UK also shares with the United States responsibility for civil administration in Iraq and is an active participant in the Coalition Provisional Authority. Britain's participation in the Iraq war and its aftermath remains a domestically controversial issue. An intense public debate continues over the justification for the war and the role of the coalition in its aftermath. The United Kingdom has the fourth-largest economy in the world, is the second-largest economy in the European Union, and is a major international trading power. London ranks with New York as a leading international financial center.

The United Kingdom is the fourth-largest market for U.S. goods exports after Canada, Mexico, and Japan and the sixth-largest market for U.S. imports after Canada, China, Mexico, Japan, and Germany. U.S. exports to the United Kingdom in 2002 totaled $37.4billion, while U.S. imports from the UK totaled $42.2 billion. The United States has had a trade deficit with the United Kingdom since 1998, although the deficit was relatively small prior to last year. The United Kingdom is a large source of foreign tourists in the United States.

The United States and the United Kingdom share the world's largest foreign direct investment partnership. U.S. investment in the United Kingdom reached $255.4 billion in 2002, while U.K. direct investment in the U.S. totaled $283.3 billion. This investment sustains more than a million American jobs.

Since 1979, the British Government has privatized most state-owned companies, including British Steel, British Airways, British Telecom, British Coal, British Aerospace, and British Gas, although in some cases the government retains a "golden share" in these companies. The Labour government has continued the privatization policy of its predecessor, including by encouraging "public-private partnerships" (partial privatization) in such areas as the National Air Traffic Control System. The United Kingdom is an energy-rich nation with significant reserves of oil and gas in the North Sea and the Irish Sea and large coal resources. In 2001, total output of crude oil and natural gas liquids was about 2.6 million barrels making the United Kingdom the world's 10th-largest producer. U.K. offshore areas should be an important source of continued production and new discoveries for some years. U.S. oil and oil-service companies participate actively in the North Sea oil industry and consider the United Kingdom an attractive environment for future investment.

The U.S. Embassy in the United Kingdom is located at 24 Grosvenor Sq., W1A 1AE, London (tel. [44] (207) 499-9000; fax [44] (207) 409-1637).