10 UK Export News You Might’ve Missed - Week 27

In this edition of Export News from Expordite, we’ll cover the top 10 UK export news and headlines from week 26 of 2024 — July 1st-7th, 2024.

Key News

• Experts react: Labour is back. Here’s what to expect from the new UK government.
• A new U.K. government renews hopes for a free trade deal with Canada
• Labour Party’s electoral victory renews hope for India-UK trade deal

General Export News

1. The UK’s Brexit dream is dead

“British voters head to the polls Thursday for their first general election outside the European Union. But in so many ways, the Brexit dream has already died.

All the key Vote Leave characters have left the stage. Five years after winning a landslide election Boris Johnson is out of parliament, making millions from speeches and newspaper columns. Michael Gove has quit politics rather than suffer life in opposition. Dominic Cummings spends his time writing blogs about Dostoevsky, TikTok and the CIA.

As the architects of Britain’s departure from the EU contemplate a decade out of power, the country they envisaged during the 2016 referendum campaign looks further away than ever.”

Source: Politico

2. Experts react: Labour is back. Here’s what to expect from the new UK government.

“After fourteen years, a changing of the guard. The United Kingdom’s Labour Party romped to victory in Thursday’s general elections, winning power for the first time since 2010. Incoming Prime Minister Keir Starmer will have to address Britain’s economic woes, but what other priorities will he have? What about the United Kingdom’s role on the world stage, and its transatlantic and cross-Channel relationships? Our experts answer those pressing questions below.

Labour’s victory in this election sends a clear signal to the European Union (EU): The United Kingdom is willing to improve its relationship with Europe. How far relations between the two partners develop will depend on the Labour government’s ambitions and what the EU is willing (or unwilling) to accept when it comes to trade. While Labour has expressed its intentions to restore relations with Europe after eight years of strained ties resulting from Brexit, it has not been very specific about its goals. If anything, what Labour has been clear about is not rejoining the EU’s single market or customs union, or allowing for the free movement of people between the UK’s borders with the EU.”

Source: Atlantic Council

3. Stocks, property, bonds, the pound: Here’s what a new Labour government means for investing in the UK

“The U.K.’s Labour Party won big in Thursday’s election and is now set to take over from the Conservatives after 14 years, at a time when economic uncertainty is still rife in the country.

The U.K.’s FTSE 100 index climbed 0.4% as investors reacted to the election results on Friday, while the British pound made only light gains. The FTSE 350 household goods and home construction index was up about 1%. Looking at individual stocks within the sector, Persimmon shares rose 2.9%, while Taylor Wimpey, Barratt Developments and Bellway were all up roughly 2%.

In the longer-term, there are also not “huge risks” for the pound under a Labour government, Francesco Pesole, FX strategist at ING, told CNBC. Potential renegotiations of Brexit deals would, if anything, be more pro-growth under Labour, and risks of excessive government spending are also low, he explained.”

Source: CNBC

4. After the icy Brexit years, the UK’s relationship with the EU might thaw following the election

“It’s been eight years since just under 52% of the British electorate voted to leave the European Union, in a monumental decision that divided friends, families and the nation.

It still does, to a lesser extent, with polls suggesting that the same vote held now might produce a different result and constituents questioning whether life outside the economic and political union is really better.

Labour says it will not attempt to rejoin the single market or customs union that characterize the EU’s economic framework that facilitates trade between member states — but signals that it wants to improve relations with Brussels.”

Source: CNBC

5. A new U.K. government renews hopes for a free trade deal with Canada

“The major shift in the British political landscape after Thursday’s election is reviving hope for a possible free trade deal across the pond in Canada.

The U.K. is Canada’s fourth-largest trading partner, with two-way trade amounting to about $45 billion a year.

On Friday morning, Prime Minister Justin Trudeau congratulated his new counterpart in a statement, saying the two will work to conclude the trade deal.”

Source: CBC

6. Labour Party’s electoral victory renews hope for India-UK trade deal

“India is optimistic that its delayed trade deal with the United Kingdom (UK) could gain momentum with a stable Labour government.

Keir Starmer became Britain’s Prime Minister on Friday after his Labour Party’s landslide electoral victory against Rishi Sunak-led Conservatives.

A senior government official in New Delhi who did not wish to be named said India’s relations with the UK were unlikely to change with the new government. “We are confident that the trade deal, which is at an advanced stage of negotiations, can be closed after accommodating sensitivities of both sides,” the official said.

India and the UK have been negotiating a trade agreement for two and a half years now. Both sides were looking to seal the deal in July after a new government would take office in New Delhi following the general elections. However, an early election in the UK further delayed the whole process.”

Source: Business Standard

7. UK manufacturing growth slows amid shipping delays and rising costs

“UK manufacturing growth moderated in June as shipping delays and increased freight costs impacted exports. Despite this, companies remain optimistic about a market recovery, although demand from North America, China, the Middle East, and parts of Europe has declined.

For the second consecutive month, factories increased activity, but at a slower pace than in May. According to the S&P Global/CIPS UK purchasing managers’ index (PMI), the sector’s output measured 50.9 in June, slightly down from May’s 22-month high of 51.2. A reading above 50 indicates expansion.

The PMI survey revealed increased production volumes driven by a rise in new domestic orders and ongoing efforts to clear work backlogs. However, new export orders fell for the 29th consecutive month, with declines noted from the United States, China, and mainland Europe.”

Source: Business Matters

8. Beef imports from Britain jump 177 percent

“Beef imports from the United Kingdom are up 177 percent in the first four months of 2024.

Canada imported $10.2 million worth of beef from Jan. 1 until the end of April.

That’s a significant increase from the same period in 2023, when beef imports from Britain were $3.7 million.

If the pace continues for the remainder of 2024, Canadian beef imports from the U.K. would top $30 million for the year.

It would be similar situation to 2022, when Canada purchased $33 million worth of beef from the U.K.

As for Canadian beef exports to Britain, Canada has not shipped any beef to the U.K. this year.”

Source: The Western Producer

9. Multiple nations enact mysterious export controls on quantum computers

“Secret international discussions have resulted in governments across the world imposing identical export controls on quantum computers, while refusing to disclose the scientific rationale behind the regulations. Although quantum computers theoretically have the potential to threaten national security by breaking encryption techniques, even the most advanced quantum computers currently in public existence are too small and too error-prone to achieve this, rendering the bans seemingly pointless.

The UK is one of the countries that has prohibited the export of quantum computers with 34 or more quantum bits, or qubits, and error rates below a certain threshold. The intention seems to be to restrict machines of a certain capability, but the UK government hasn’t explicitly said this. A New Scientist freedom of information request for a rationale behind these numbers was turned down on the grounds of national security.”

Source: New Scientist

10. TAHA rolls out scheme to boost horticultural exports to UK

“IN a groundbreaking move set to transform Tanzania’s horticultural landscape, a leading industry player has rolled out a strategic initiative that will boost crops’ exports to the United Kingdom.

This is aimed at further pumping a great amount of foreign currency into the economy, especially by positioning the horticultural exporters at a level, where their business will flourish.”

Source: Daily News Tanzania