The week that saw the UK fully join a major pacific trade bloc also saw the launch of a new report exploring how British businesses can take advantage of a government push for more regional growth and a warning on the EU’s plans to protect its own supply chains.
The big picture: Warnings of a ‘China export shock 2.0’ could galvanise support within the EU for the Industrial Accelerator Act (IAA), which is designed to boost local procurement for goods used in manufacturing.
Politico reports that trade experts and MEPs testified in EU parliament that a second export shock could be even more destructive than the first – when China initially joined the WTO in 2001.
The IAA is designed to limit Chinese investment in strategic sectors like raw materials, energy or critical minerals. One method is to require public projects to use goods made in Europe, which could exclude Chinese firms. However, the risk is that this could also hit allied countries like Australia, South Korea, the US and the UK, something that the new Burnham administration has quickly raised.
UK prime minister Andy Burnham met with French President Emmanuel Macron yesterday to express concerns over the plan, saying it could post “significant challenges for UK industry".
Macron was welcomed for Burnham’s first important international meeting at Downing Street., where the two discussed the UK-EU relationship and the IAA. Ahead of meeting, the PM had said he would highlight steel and farming as crucial parts of the UK economy that he would discuss during any UK-EU talks.
Good week/bad week: Some good news for UK exporters as the country’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) received full ratification this week.
Canada, which was the last to approve UK membership, ratified the UK's membership, meaning that British businesses can enjoy access to all CPTPP markets under the terms of the agreement.
This means over 99% of the goods UK firms export into the 11 member countries will be eligible for zero-tariffs, according to the government. The list of countries includes Australia, Japan, Singapore, as well as nations which the UK doesn’t have existing bilateral trade deals with, like Brunei and Malaysia.
UK trade minister Lord Anas Sarwar said that the agreement creates “new opportunities for British businesses across some of the world’s fastest-growing markets”.
Additionally, “UK businesses operating in Canada will benefit from easier travel arrangements, with eligible business visitors now able to stay for up to six months”, according to the UK government.
A bad week for UK-based oil firm Rockhopper Exploration, which has seen a drop in its share value following the threat of sanctions from the Argentinian government.
The company has drilling interests in the Falklands, which have once against become the subject of a sovereignty debate between the UK and South American nation.
Argentinian president Javier Milei said on Thursday that the Sea Lion oilfield, where Rockhopper has found significant reserves, reflect a "clear and present danger" and "Argentina will not stand idly by" amid advances in the area.
How’s stat? Between £2m and £100m. That’s the so-called ‘valley of death’ – the gap between UK financing provision thresholds that makes it difficult for businesses to scale within the UK.
One of the six recommendations that came out of the All-Party Parliamentary Group for Trade and Investment’s (APPG) newly published report this week, was that this equity gap should be closed in order to support UK firms to grow locally. The Chartered Institute of Export & International Trade and North Point Strategy are co-secretariats of the APPG and provided support for the report.
The APPG’s report, Navigating the Trade Triangle, explores business feedback towards three key government strategies impacting traders: The Modern Industrial Strategy, Small Business Plan and Trade Strategy.
You can read the full set of recommendations and report here.
Quote of the week: “We’ve heard from our members and we know that businesses are operating in a more challenging trade environment than many have ever encountered before, and that the cost of getting compliance wrong has never been higher.”
Chartered Institute head of membership Hayley Zeff on why traders should explore the organisation’s new business membership, which offers access to expert advice, affordable training and a professional network grappling with the same challenges.
The week in customs: The European Council has ‘greenlit’ changes to what it calls an “ambitious” reform of the EU customs framework.
“The updated union customs code clarifies that non-EU e-commerce platforms will be considered the goods’ importer when selling into the EU”, the council’s press release said, making it clear that the platforms are now responsible for ensuring that all formalities and payments are handled.
There is also a new system of penalties for e-commerce operators, and confirmation that the EU’s handling fee for small parcels will be applied from 1 November 2026.
Additionally, the proposals would create a new customs coordination agency and create “a new category of the most transparent businesses – trust and check traders.”
The European Parliament still needs to approve the text, expected later in September, before this becomes law.
What else we covered: Following a US ban on exports of scrap tungsten, Chartered Institute director of export controls and defence Daniela Turiccki offered insight into how supply chains are changing in response to critical mineral controls.
UK chancellor John Healey announced that the maximum fine that the Office for Financial Sanctions Implementation can impose for companies breaching sanctions has now doubled, as part of measures to crack down on the Russian war economy.
True facts: Much has been made of the record 250 days spent at sea by US sailors disembarking from the USS Abraham Lincoln this week.
History shows us that shippers historically wouldn’t rival such a lengthy stint at sea, with some non-stop trading routes between Britain and New Zealand reaching up to 120 days without commercial stops planned.
