In this edition of Export News from Expordite, we’ll cover the top 10 UK export news and headlines from week 6 of 2024 – February 5th-11th, 2024.
“Contingency plan comes after trade bodies warn new checks risk disrupting supply chains.“
“Most UK-Ukraine trade will remain tariff-free until at least 2029, thanks to an extension agreed today to support Ukraine’s long-term economic recovery from the war.
The commitment forms part of the UK’s efforts to support Ukraine following Russia’s full-scale and illegal invasion, which has disrupted supply chains and transport routes and impacted Ukraine’s ability to export goods.
This latest agreement will see tariff-free trade extended on all goods for five years, except eggs and poultry which will be extended for two years.“
3. Export fund which has launched the overseas careers of Mercury Prize winners given fresh government backing
“The UK’s creative industries will be able to build on recent trade wins to seize future opportunities and drive investment in the UK, thanks to new government efforts to promote British exporters announced today (Thursday).
Business and Trade Secretary Kemi Badenoch will host businesses for a meeting of the recently revamped Board of Trade at Tileyard, a creative industries hub in King’s Cross, London. The site is home to 150 music studios and 175 businesses, including some of the UK’s cutting-edge music, tech, and film and TV exporters.
The Secretary of State will announce grants of £1.6 million via the Music Export Growth Scheme (MEGS) to boost British music exports. The scheme supports small and medium sized music companies to build on their commercial potential by profiling their artists in overseas markets. The uplift in funding – the biggest in the history of the scheme – will support 67 artists from across the UK.”
“The Border Target Operating Model (BTOM), the first stage of which came into force on 31 January, will have a significant impact on how the EU trades with Great Britain. Over three stages throughout 2024, new checks and declarations will be required for goods imported into Great Britain.“
“The announcement last month by the Port of Dover that the government was imperilling the UK’s food safety by insisting that import checks be conducted at a facility 22 miles inland rather than at point of entry, when physical inspections begin in April, could be dismissed as just another skirmish in the battle to implement a flawed Brexit. In reality, it’s part of a much bigger challenge to the UK’s post-Brexit food security – one which many in the sector believe will result in the first domestic crisis of a coming Starmer premiership: major food shortages and empty supermarket shelves.
At the heart of the issue, for a country that imports more than 45% of its food after exports, are post-Brexit border checks, recently introduced after five delays. The EU has been checking British exports for safety and standards for three years. This has already had an impact on trade. While Brexit cheerleaders like to celebrate robust export figures to the EU, those are led by gas and whisky. UK beef and pork exports were already down by more than 20%. According to figures from the Food and Drink Federation, the same is now being seen with imports, with apples down by 16.8% and oranges down by 18.2%.“
Source: The Guardian
“A Brexit boost means that exports now account for one third of a British manufacturing firm’s business.
Advanced Chemical Etching (ACE), which supplies parts to customers in aerospace, automotive, electronics, engineering, medical and telecoms, has seen orders fly in from across Europe.
The Telford-based company is predicting £10million in sales this year as Shropshire – home of the Industrial Revolution – is “put on the global manufacturing map”.
Boss Ian Whateley said: “Export now accounts for nearly 30 percent of our annual turnover and we’re seeing really strong demand from Austria, Germany, Switzerland and our traditionally strong markets of Belgium and the Netherlands.“
The Food and Drink Export Council (FDEC) is set to hold the second peer-to-peer event in its series, in Cookstown, Northern Ireland today. The first event took place in Perth, Scotland late last year.“
Source: News Letter
“Recent estimates from Scotland’s salmon sector put additional post-Brexit bereaucratic costs due to at around GBP 12 million (USD 15.3 million, EUR 14.1 million) than the sector would have otherwise experienced, with trade body Salmon Scotland pointing to “painfully slow” progress in the introduction of new measures to smooth trade flow and open new markets. This comes despite the international demand for the product remaining “incredibly high” and the sector being worth GBP 766 million (USD 977.9 million, EUR 898.3 million) a year to the U.K. economy, it said.
“International demand for Scottish salmon, rightly considered the best in the world, is incredibly high; with less bureaucracy, we could further grow exports. This, in turn, would generate millions of pounds for the Scottish and U.K. economies,” Salmon Scotland CEO Tavish Scott said.
One method by which the sector is trying to boost efficiency is by implementing a digital system for export health certificates, all in an attempt to eliminate the extra GBP 3 million (USD 3.8 million, EUR 3.5 million) that post-Brexit paperwork has cost salmon-farming companies, Salmon Scotland previously estimated. This has yet to come to fruition despite successful pilot testing taking place over two years ago.“
“Tariff-free trade with Ukraine has been extended until 2029, the government has announced, marking a deeper commitment to the country’s economy as its war with Russia continues.
Trade minister Greg Hands, who was due to sign the reciprocal extension at a virtual ceremony, said the support would continue for “as long as needed”.
However, the UK’s National Farmers’ Union (NFU), while welcoming the renewed show of “solidarity”, has expressed concern about the impact on domestic production amid industry anger across Europe about hits to profit margins and shifting regulations.“
Source: Sky News
“EU bureaucrats reportedly could launch a formal dispute with the UK after the government’s strike laws came into force, which they argue breach the Brexit deal on workers’ rights.
According to the Telegraph, officials in Brussels have expressed concerns Britain could be breaching the terms of the free trade agreement (FTA) with minimum service levels rules.
Brought in by Rishi Sunak last year, the legislation permits transport operations to mandate workers to clock in for shifts – even during strikes – so they can run 40 per cent of services.
But the European Union (EU) raised concerns about the measures, the Telegraph reported, as they could be seen to limit workers’ rights in a way banned by the terms of the FTA“
Source: Yahoo Finance
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