It’s been a significant week for the UK government in many respects, but not least in trade, where it published its long-await Trade Strategy. It followed the Industrial Strategy published earlier in the week, which the trade secretary dubbed the beginning of a “new era” for the country.
The big picture: The government’s Trade Strategy was launched this week, and included a host of new measures aimed at boosting exports, particularly for SMEs.
As we noted in our full write-up, the strategy includes a £5bn ‘Ricardo fund’ for supporting businesses to manage regulation, as well as an increase in the capacity of UK Export Finance (UKEF) to £80bn. A new ‘Small Export Builder’ will also expand insurance options for those looking to export.
Also in the text of the strategy were plans for a new consultation on the UK joining the Pan-Euro Mediterranean Agreement (PEM), which eases rules of origin requirements for a host of EU and non-EU countries in the region.
The government says that joining PEM “could provide an opportunity to harmonise rules of origin with our nearest neighbours, and increase flexibility for UK exporters where they source their inputs”. The question of UK membership will be explored with both “business and PEM members” – though it noted that PEM rules “could have varying effects on businesses and the need to maintain focus on minimising administrative burdens for traders”.
You can read Chartered Institute of Export & International Trade director general, Marco Forgione, respond to the Trade Strategy here, as well as the thoughts on the announcement of a few of our experts here.
Good week/bad week: A good week for US-China trade, as the two countries concluded an agreement to end their latest trade spat, which the US has suggested will increase its access to Chinese rare earth metals – as well as keeping tariffs down from the ostentatiously high levels seen at the height of the disagreement.
A less positive week for foreign direct investment (FDI) to the UK, which dropped to a record low according to figures published by the Department for Business and Trade.
How’s stat: £7bn – that’s the value that could be added to UK exports over the next decade by 50% more SMEs exporting, should reforms and support proposed in this week’s E-Commerce Trade Commission report be implemented.
Quote of the week: “Ministers are right to draw attention to the ‘new geopolitical order’ the country is operating in, and measures to upgrade the UK’s trade defence toolkit and to overhaul its trade remedies system are welcome.”
Chartered Institute Export Controls Advisory Practice lead Daniela Turiccki, on the government's Trade Strategy.
The week in customs: Our latest public webinar looked at overcoming the barriers to e-commerce trade, including negotiating customs regulations. It featured a look at the practical support available to SMEs, as well as tariff talk addressing the particular challenges for online trade under the second Trump presidency. You can watch it in full here.
What else we covered this week: The Trade Strategy wasn’t the only major document published by the UK government this week.
It also put out its Industrial Strategy, which included a range of measures relevant to traders. Jonathan Reynolds, the business and trade secretary, said it marked a “new era”, and plans including the expansion of electronic trade documents caught our eye in our write-up earlier this week. We also had member-exclusive analysis looking at the detail, which you can read here.
Our latest Commodity in Focus feature examined the ongoing effects of climate change on food staples. Among those affected is Japan, which is managing the political fallout of hits to rice production.
Members could also read this week’s edition of State of Freight, which looked at how the Israel-Iran conflict – as well as the ceasefire between the two countries agreed this week – has cast a shadow over shipping.
True facts: Two bears enjoyed a sweet moment this week in Exeter, as they escaped their enclosure at Wildwood Devon wildlife park to indulge in a “week’s worth of honey”. There is every chance they were consuming an import, as 80–90% of the UK’s honey is imported.
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