UK prime minister Andy Burnham has dominated the week’s trade headlines, following his major set-piece speech to the Labour Party Conference in Liverpool on Wednesday (30 September).
Aside from politics, there’s also been some major milestones and events in international trade over the last few days.
White House threats of an export ban on diesel exports have added to concerns over the energy supply chain, the UK government has made a number of changes to its export controls and sanctions rules, and a new regime for vaping products came into effect.
Big Picture: The PM’s speech to the Labour Party Annual Conference set out his vision for the UK. His first as leader of the country, Burnham included references to rewiring the British economy, giving more power to the nations and regions of the UK, and a major promise on reforming social care.
However for traders, it was his comments on the EU that mean the most. The Labour leader set off a debate when he suggested that he would be open to a return to the European customs union, single market or even the EU itself. His stated goal was to improve the EU-UK relationship, notably trade, but his possible commitment to re-joining the EU was the strongest signal in years from a Labour Leader.
This could create a challenge for Burnham ahead of a by-election in St Pancras and Holborn next week. The Conservative Party closes out conference season with their own event next week, offering opposition leader Kemi Badenoch a chance to set out her own stall on EU relations, while Reform UK leader Nigel Farage has said that the reignited debate is the “biggest boost in my career”.
Already, former trade ministers Dr Liam Fox and Greg Hands have hit back at the PM’s decision, saying it could threaten the UK’s recently negotiated trade deals.
Good week/bad week: It’s been a good week for cheese exporters. Politico reports that Somerdale International has placed different specialty cheeses on Mexican shelves under the terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). “We all know British cheese is world-class, and thanks to the CPTPP, customers in Mexico are now getting a taste of that tariff-free,” said trade minister Lord Anas Sarwar of the news. Some estimates said that the CPTPP would boost UK exports by 87%, following UK membership of the trade pact, which was completed earlier this year.
It’s been a bad week for diesel, as the fuel is caught in a geopolitical storm and prices spike. US President Donald Trump has threatened an ban on American exports of the fuel, prompting discussions on release of reserves, amid the chaos of the US-Iran war. Additionally, a major Chilean refinery shut down production for 40 days, adding to concerns over energy supply chains.
How’s stat? 0.5%, the GDP growth the UK experienced in Q2 following a revision in data by the Office for National Statistics. This represents a 0.1% improvement on the previous figures, and means the UK has grown by 1.1% in the first half of this year.
Quote of the week: “The price increase of diesel is effectively a tariff on every mile that the supply chain travels. It’s not just food production, all the trucks, the ships, everything is dependent on diesel to get products onto the shelves and to support our manufacturing. The impact of an export ban by the US would be immense on our global economy.” Chartered Institute of Export & International Trade director general, Marco Forgione, on the prospect of a US diesel export ban.
This week in export controls: The Office of Financial Sanctions Implementation (OFSI) has launched its 2026 frozen asset review, requiring all persons holding or controlling funds or economic resources belonging to UK-sanctioned designated persons to report the value and details of those frozen assets as at 30 September 2026 by 30 November 2026.
The Office of Trade Sanctions Implementation (OTSI) published two general trade licences under the Russia sanctions regime, covering transport of liquefied natural gas (LNG) from South Korea and Japan.
The Export Control Joint Unit (ECJU) has updated its end-user and stockist undertaking (EUSU) form for export and trade control licence applications, requiring all sections to be completed, introducing new questions on third parties and intermediate users, and expanding guidance to improve visibility of the full export journey and reduce licensing delays caused by requests for additional information
The foreign office also updated the Russia sanctions regime over yesterday and today (2 October), removing several entities and adding dozens more.
The week in customs: The UK’s Vaping Products Duty regime entered into force yesterday (1 October), with a new levy of £2.20 per 10ml refill of e-liquid, or 44p per 2ml pod. Sellers have six months to sell old stock at pre-duty prices.
The EU’s ‘melt and pour’ requirements’ for steel products also came into effect yesterday, requiring importers of the goods to prove country of origin when bringing goods into the EU.
What else we covered: We extensively covered the Labour Party conference, including the Chartered Institute’s panel on improving EU-UK relations and Burnham’s speech.
State of Freight looked at the long-term impacts of port congestion on shipping, even as prices appear to be falling for Europe-Asia transport.
True facts: As the furor over the Manchester City FC financial scandal breaks continues, discussions turn to the value of the UK’s cultural export.
The Premier League estimates that it will bring £33billion in gross value added (GVA) to the UK between 2025-2028, supporting 107,600 jobs annual. Over a million international visitors came to watch a game in 2023/2024. The FT calls the league one of the UK’s most important cultural exports.
Manchester City, which is owned by a member of the UAE’s royal family since 2008, was found guilty of 114 of 115 charges by the Premier League in a recent decision by an independent panel. Experts warned that the decision could cause friction between the UK and UAE, with politicians distancing themselves from the league’s decision.
