(Also published on LinkedIn)
In this edition of Export News from Expordite, we’ll cover the top 10 UK export news and headlines from week 20 of 2023 – May 15-21, 2023.
General Export News:
“Trade Secretary Kemi Badenoch today [15 May] flies to Switzerland to launch negotiations on a new UK-Switzerland free trade agreement (FTA) to boost trade between the two services superpowers.
Switzerland is one of the wealthiest countries in the world and the UK’s 10th largest trading partner. The two countries are among the world’s leading service economies, exporting almost £15 billion worth of services including financial, professional, legal, and architecture every year.
The current UK-Switzerland FTA is based on an EU-Swiss deal from more than 50 years ago – before the advent of the home computer or the internet – and does not cover services, investment, digital or data. With most of the UK’s services exports to Switzerland delivered electronically – almost 69% in 2020 – both sides are keen to rectify this in upcoming talks.”
“The first-ever recipients of the Made in the UK, Sold to the World awards have been announced today (Wednesday 17 May), celebrating the exporting success of small businesses across the UK.
Winners include Little Moons who produce colourful ice cream bites wrapped in ‘mochi’ dough which have become a mainstay of major supermarkets in the UK. Awarded in the agriculture, food and drink category, the business exports to 28 countries including Australia, the Middle East and mainland Europe.
In the consumer award category, ScotlandShop were recognised for their high-quality tartan clothing, fabrics and home accessories, made to order. The business has grown from start-up to £2.4m sales in 2022 and employs 20 people in the UK and 2 in the USA.
Awardees also include those at the cutting-edge of technology, such as Scanning Pens, which won the education award. The company promotes and distributes the most innovative, award-winning assistive reading technology on the market. Their pens are being sold in over 100 countries, including Australia, Canada, United States, Asia and Europe.”
“The UK is fourth in the world and second out of the G7 economies, in a new ranking of the impact of entrepreneurs on their overall economy from Shopify.
The results were debuted in the Shopify Entrepreneurship Index, a new study that provides data and rankings on 40 countries around the world. It was conducted in partnership with Deloitte using data from entrepreneurs in the Shopify ecosystem and supplemented with data from IMF, OECD, and World Bank.
According to the index, entrepreneurs in the UK grew their exports by 8% in the last year at a value of over £3.2 billion, supported almost 200,000 UK jobs, generated £28.8 billion worth of business activity in 2022 and contributed £14.3 billion in GDP impact.”
Food Export News
“For livestock sectors, trade modelling work completed in conjunction with Harper Adams University highlights population growth, economic development, and the expansion of middle-class consumers as the drivers for long-term opportunities for red meat and dairy products from joining the CPTPP. While initial opportunities are limited, there are potentially future benefits in the Asian and South American markets, driven by increased demand for red meat and dairy products.
Further opportunities for UK red meat and dairy may also be presented if other countries, such as China, Taiwan, Ecuador, Costa Rica, and Uruguay, join the CPTPP. Joining the CPTPP means offering preferential terms and either lowering or removing tariffs over time to other members. More can be read on this on the AHDB website.
Opportunities of strengthening demand for products from the UK livestock sectors could also lend support to the longer-term UK animal feed demand outlook too. As such, demand for cereal and oilseed usage.”
“British lamb is due to be showcased at a major US trade show to help capitalise on opportunities in the foodservice sector.
AHDB will be featuring British meat products at the National Restaurant Association show 2023 in Chicago from 20–23 May.
The event, aimed foodservice professionals, is a chance to shout about British produce, to maximise export opportunities, and identify new ones. The focus will be on lamb exports but there will also be the opportunity to promote beef and pork.
Exports of British lamb to the US resumed last year after more than two decades of restrictions, with the first shipments beginning in October 2022. AHDB estimates suggest the US market will be worth £37 million in the first five years of trade.”
“Farmers will benefit from a commitment to protect their interests in future trade deals, support to boost domestic fruit and veg production and new investment in technologies, thanks to a package of support set out by the Prime Minister Rishi Sunak ahead of a summit hosted at Downing Street today (16 May).
To boost trade and export opportunities to get more British food on plates across the world, building on the £24 billion a year generated by our food and drink exports, the government has confirmed that farmers’ interests will be put at the heart of trade policy through a new framework for trade negotiations, committing to protect the UK’s high food and welfare standards and prioritise new export opportunities. The Prime Minister has written an open letter to farmers today setting out how these new principles will help the industry benefit from the trade opportunities available to us outside the EU.”
“The Minister for Export Growth and Trade, Damien O’Connor says everyone should be excited at the news because it allows genuine progress in the reduction of a huge number of tariffs and cost for a huge number of exporters into that market. He says it is expected to boost NZ’s GDP by up to $1 billion and expand exports to the UK by over 50%.
“From day on 99.5% of current exports will enter the UK duty-free through a combination of tariff elimination and duty-free quotas,” he says.”
Source: Dairy News
“Cheesemakers and dairy firms are among the British businesses that have been hard hit by additional Brexit-related costs and bureaucracy.
“There is a whole raft of paperwork that did not exist before Brexit that in itself is adding to cost and complexity,” said Andrew Kuyk, senior policy adviser at the Provision Trade Federation (PTF).
Dairy firms trading their products with the EU are required to complete export health certificates that can cost around £200 to £300 per load.”
Vehicle Export News
“Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, had committed to making electric cars in the UK, but says that is under threat.
It warned it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from.
It is the first time a car firm has openly called for a renegotiation of the terms of the Brexit trade deal, and the BBC understands all major manufacturers in the UK have raised similar concerns with government.”
“Prime minister Rishi Sunak has said the UK government is in conversation with the European Union regarding new “rules of origin” tariffs, which have been criticised by Stellantis, Ford and JLR.
Updated legislation, which is due to come into force in 2024, means that 45% of the value of an EV produced should come from the EU or the UK to qualify for trade without tariffs.”
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