Giz, it means friend here in UK also.
And although I'm not aware of anyone in the UK using the term 'buddy' (except perhaps people who watch a great deal of US tv) - we all understand it.
The closest I'm aware of, is in Wales. There the term is butty (emphasis on the 't') and there it means "close friend", "mate" or something similar.
Predominantly I think, we aware of the word from its usage in US movies and perhaps as a hangover from WW2 troops stationed here.
No bad connotations at all
