The UK and Michigan are to collaborate on self driving car rules and smart motorway technology.
Michigan Governor Rick Snyder and UK business minister Richard Harrington signed a memorandum of understanding which agreed that British automotive organisations, in locations including London and Warwick, will work with firms and agencies based in Michigan state.
They will share new technologies and concepts for the future of road transport.
In Britain key entities include the Centre for Connected and Autonomous Vehicles, and Transport Systems Catapult, which will collaborate with the American Center of Mobility and MCity - among other self-driving test facilities.
Michigan's Governor Snyder told the Financial Times: “We need to embrace a broader network. The technology itself is being developed in many different places. Britain is a place of core competency in this field.”
Snyder said the agreement emphasised partnership, rather than competition.
In order for self driving cars to become commonplace on our roads, new test facilities need to be developed, alongside updated insurance protocols.
Crucially, who is to blame in the event of a self-driving car crash must be decided.
There are also significant implications for jobs. In Michigan they are looking at how new technical occupations may be introduced - such as roles involving cleaning and maintaining driverless car sensors.
Governor Snyder told the Financial Times that London led the world with its roadworks model, which harnesses upgrades to implement technology that in the future will highlight delays or suggest alternative routes.