10 UK Export News You Might’ve Missed – Week 23
(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 23 of 2023 — June 5-11, 2023.
General Export News
1. UK launches process to negotiate trade deal with the Republic of Maldives
“The UK has today [8 June] launched an eight-week call for input in preparation to negotiate a goods-only Free Trade Agreement (FTA) with the Republic of Maldives, inviting business, organisations and individuals to help shape the UK’s negotiating aims.
Maldives is one of the few countries in the Commonwealth which the UK is not already pursuing an FTA with or does not already have preferential access to the UK market.”
Source: GOV.uk
2. New UK sanctions legislation allows the government to target Belarus exports, internet propaganda, and crack down on circumvention
“New sanctions legislation allowing the UK government to target exports from Belarus funding the Lukashenko regime and crack down on Russia’s efforts to circumvent sanctions, have been announced today (8 June 2023).
The measures also give the government grounds to prevent designated Belarusian media organisations from spreading propaganda in the UK, including over the internet, as the regime continues to actively facilitate Russia’s invasion of Ukraine and spread false narratives.”
Source: GOV.uk
3. UK issues a “Notice to Exporters” on trade sanctions circumvention
“On 22 May 2023, the UK’s Export Control Joint Unit published a Notice to Exporters on trade sanctions circumvention (the Notice). The trade sanctions aim to restrict Russia’s access to goods, technologies, and revenue that could be used to support its illegal war.
The purpose of the Notice is to prohibit the undermining of trade sanctions, export controls, and other restrictive measures that were put in place in response to Russia’s invasion of Ukraine. At the same time, it raises awareness of the risks and obligations associated with dealing in sanctioned goods.”
Source: Harneys
4. Retail Movement Scheme: how the scheme will work
“The Windsor Framework establishes a new way to move pre packed retail goods from Great Britain (England, Scotland and Wales) into Northern Ireland.
It’s called the Northern Ireland Retail Movement Scheme (ReMoS). The scheme will start on 1 October 2023, replacing the existing Scheme for Temporary Agrifood Movements into Northern Ireland (STAMNI) from that point.
UK public health and safety and consumer protection standards will apply for all retail food and drink in the UK internal market.
Businesses moving goods under the scheme will be able to benefit from the new green lane arrangements provided for in the Windsor Framework. This means that businesses will:
- avoid extensive and costly certification and assurance processes
- be able to move products that meet UK public health, organics and fisheries rules
Under these arrangements, goods will move on the basis of a single General Certificate for eligible consignments, supported by a packing list.”
Source: GOV.uk
Vehicle & EV Export News
5. Rishi Sunak and Joe Biden announce green funding agreement
“UK firms could gain access to US green funding as part of plans to boost UK and US ties announced by Rishi Sunak and Joe Biden.
The pair unveiled the Atlantic Declaration, to strengthen economic ties between the two countries, at a White House press conference.
The PM said the agreement, which falls short of a full trade deal would bring benefits “as quickly as possible”.
UK electric car firms may get access to US green tax credits and subsidies.”
Source: BBC News
6. Wrightbus secures £50 million UKEF financing to turbocharge green exports
“A guarantee from UK Export Finance (UKEF) has provided Northern Ireland-based bus manufacturer Wrightbus with £50 million in financing to support its ambitious exporting strategy. This Export Development Guarantee sees the UK’s export credit agency guarantee 80 percent of the loan from Barclays Bank.
This financing builds on previous government support announced last year, helping deliver on the Prime Minister’s priority of keeping the economy growing. The development gives Wrightbus critical working capital support as well as a more flexible way to deploy the funds to support its business needs.
The company generated 27% of its revenues from exports in 2022 and seeks to grow this by nearly a fifth by the end of 2023 thanks in part to the UK government’s support. To facilitate this growth, Wrightbus plans to double its workforce by 2026, creating 1,000 new green jobs with most of the roles based at the company’s Ballymena hub.”
Source: GOV.uk
7. UK car exports on a cliff edge
“In 2022, the UK exported almost 80% of the vehicles it produced – 606,838. A considerable majority of these exported vehicles went to three key markets – the European Union (57.6%), the United States (13.3%) and China (8.7%)
Critically, 71% of the markets to which the UK exports are introducing Zero Emission Vehicle (ZEV) mandates. These will set targets for manufacturers for the minimum percentage of cars that they sell that must be zero emission. By 2030, 40% of the vehicles sold in China will need to be zero emission. In the US, 16 states (representing around 5% of the market for the UK’s car exports) will require 68% of cars sold to be zero emission. In the EU, a ZEV mandate has been agreed that will require the average emissions of all vehicles sold by a manufacturer in 2030 to be 55% lower than 2021 – this will, in practice, require a significant portion of the vehicles sold to be zero emission.”
Source: Energy & Climate Intelligence Unit
8. Blog: Exciting decade ahead as UK auto sector faces up to climate crisis
“The UK’s automotive industry is an important part of our economy today. The Society of Motor Manufacturers and Trader’s (SMMT) industry facts show that automotive in the UK makes up 10% of UK exports and almost 800,000 jobs. There has been a century of relative stability in the industry, with one predominant powertrain technology. Historically, vehicle manufacturers have not had to worry about where their fuel comes from or how to get fuel to the vehicle. The need to move to net-zero has changed this and brings challenge as well as opportunity to the industry.”
Source: The Engineer
Food Export News
9. CPTPP – will it boost dairy exports?
“Joining the CPTPP will increase the free trade access to 11 nations (Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam and Japan) and around 500 million consumers. This could boost dairy exports in future and benefit the farmers in the supply chain.
Going forward with more countries like China, Taiwan, Ecuador, Costa Rica and Uruguay joining the CPTPP, it is likely to open up the gates for long-term opportunities in the dairy sector. This will be subject to other factors like global and economic scenario, climatic conditions in the major producing regions, margins and input costs. Time will help to quantify how exactly the CPTPP deal will influence trade flow in the coming days.”
Source: AHDB
10. EU ‘breakfast directives’ mean UK jam makers face recipe changes
“British jam makers will have to make costly changes to their recipes to keep selling in Europe because Brussels is revising “breakfast directives” that regulate ingredients.
EU diplomats are locked in intense negotiations in Brussels over new regulations for jams, jellies and marmalades that dictate how much fruit spreads sold in the world’s largest market for jam must contain.
Failure to follow the new European rules will mean UK firms won’t be able to sell their existing products as jam in the EU.
They would either need to change their recipes, create special export versions to meet the requirements or be forced to accept labelling their products as fruit spreads.”
Source: The Telegraph
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