10 UK Export News You Might’ve Missed – Week 20
In this edition of Export News from Expordite, we’ll cover the top 10 UK export news and headlines from week 20 of 2024 — May 13th-19th, 2024.
Key News
General Export News
1. Businesses set to benefit as UK concludes tax agreement with Peru and ratifies deal to join major Indo-Pacific trade bloc
“The UK has, earlier than expected, completed its key step required for joining CPTPP, Minister for Trade Policy Greg Hands will tell fellow members of the group during a meeting in Arequipa, Peru.
Joining CPTPP – which will account for 15% of global GDP with the UK included – means over 99% of current UK goods exports to CPTPP members will be eligible for tariff-free trade. Encompassing 500 million consumers in some of the world’s largest current and future economies, the potential for increased trade is huge.
The UK intends to be an influential member of CPTPP, making its voice heard on all key matters, and is already involved in meetings and discussions with CPTPP Parties on the future of the agreement. Peru, a member of the bloc, is a longstanding trading partner for the UK, with bilateral trade worth £1.8 billion last year. “
Source: GOV.uk
2. UK ratifies CPTPP trade deal earlier than expected in ‘important’ moment for British businesses
“The UK government has ratified the terms of the agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) “earlier than expected”, it has been announced today (17 May).
For the CPTPP to enter force by the end of 2024, six other countries need to ratify the treaty. Those who have already done so include Japan, Singapore and Chile. The process is ongoing for several other countries.
Among the benefits described by the government are a cut to “red tape” for UK exports, as well as “increased flexibility” via modernised rules of origin for British goods.
The Department for Business and Trade (DBT) also says that new provisions will “limit barriers” for investment.“
Source: The Institute of Export & International Trade
3. UK Export Finance and Virgin Money support £750k boost for Scottish shortbread exports
“UK Export Finance has worked with Virgin Money to secure a £750k financing package for Scottish premium shortbread manufacturer Dean’s of Huntly.
The family-owned business already exports to markets like Germany, USA, Australia, and China, selling both branded shortbread and own-brand products made for large overseas retailers.
UK Export Finance helped to secure Virgin Money financing with a guarantee offered through its General Export Facility (GEF) product – this has helped UK exporters to access over £325 million in new working capital loans since its launch by UKEF in 2020. The agency can fast-track applications for financing facilities worth up to £10 million.“
Source: GOV.uk
4. UK and partners target Russia-DPRK ‘arms-for-oil’ trade with new sanctions
“The UK alongside international partners has today announced a new package of sanctions to target Russian and North Korean (DPRK) attempts to contravene or circumvent UN sanctions with its ‘arms for oil’ trade.
The sanctions highlight the joint malign efforts of Russia and the DPRK to circumvent sanctions on petroleum products, which help facilitate the DPRK’s unlawful military programmes.”
Source: GOV.uk
5. Breaking: Britain’s historic ban on live exports
“We’re delighted to share the news that the Animal Welfare (Livestock Exports) Bill has passed its final stage in Parliament, delivering on the government’s longstanding commitment to ending the export of animals for slaughter and fattening overseas.
The Bill will make the UK the first European country to ban live animal exports, following in the footsteps of New Zealand*, Australia, and Brazil which have all made commitments to ending or phasing out the trade. The EU is currently the largest exporter of live animals but there are hopes that a UK ban will influence attitudes ahead of upcoming EU elections. “
Source: Animal Aid
6. UK trade deal to boost construction output
“The UK has ratified an agreement to join a global trade bloc, a move the government claims could boost construction output by £119m a year.
The UK will be the twelfth member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Japan, Australia and Canada.
The countries represent around 500 million consumers collectively.
The move may result in up to a £119m annual boost in construction output in the long run, according to the Department for Business Trade (DBT).“
Source: Construction News
7. The UK has surged to become one of the biggest exporters in the world – but this isn’t all good news
“The UK’s rise to become the world’s fourth largest exporter sparked a wave of celebration among the country’s policymakers, politicians and trade analysts. According to new data, the UK overtook major economies like France, the Netherlands and Japan, and sat behind only China, the US and Germany in 2022 with US$1.02 trillion (£808 billion) in exports.
At first glance, this seems a significant coup, showcasing the UK’s economic resilience. But before cracking open the champagne, it’s worth considering what these numbers truly mean and whether they tell the full story.“
Source: The Conversation
8. Brexit border IT outages delay import of perishable items to UK by up to 20 hours
“Lorries carrying perishable food and plants from the EU are being held for up to 20 hours at the UK’s busiest Brexit border post as failures with the government’s IT systems delay imports entering Britain.
Businesses have described the government’s new border control checks as a “disaster” after IT outages led to lorries carrying meat, cheese and cut flowers being held for long periods, reducing the shelf life of their goods and prompting retailers to reject some orders.“
Source: The Guardian
9. Sharp rise in cost of British lamb in UK due to rising demand and import issues
“The price of British lamb has hit an all-time high as cold weather and disease in the UK and difficulties with imports have combined with a surge in demand.
Wholesale prices have soared by more than 40% year-on-year to more than £8.50 a kg , while the amount of lamb expected to be produced in the UK this year is forecast to shrink by 1.4%, according to the Agriculture and Horticulture Development Board (AHDB).
Meanwhile, UK demand in the past three months is up by 8% after Easter and Eid, when families tend to make lamb a centrepiece dish. British supermarkets also face competition for local lamb from overseas buyers, with high demand in France.“
Source: The Guardian
10. Opportunities for UK pork exports highlighted by Mexican visit
“An inspection of the UK pork sector by an official delegation from Mexico has been labelled a “milestone moment” in maintaining and expanding market access to the region for the industry.
The delegation of Mexican officials spent two weeks inspecting abattoirs and cold stores to gather evidence on compliance with national and EU legislation on animal health and welfare, as well as food safety.
The inspection was hosted by Defra, working in close partnership with the UK Export Certification Partnership (UKECP), AHDB and the wider industry. It was also supported by other UK and devolved government departments and agencies, including representatives from the Department for Business and Trade (DBT) Mexico.
Mexico officially opened its doors to British pork exports for the first time in 2021 and earlier this year opened its market further to include temporary access for pork offal and edible by-products.“
Source: AHDB
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