Category: Trade

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 19 July 2022.

The second round of UK-Canada Free Trade Agreement negotiations began on 20 June and concluded on 24 June. Owing to concurrent negotiations with India and CPTPP, a limited number of sessions will be held outside of this week, including goods market access, scheduled for mid-July.

The negotiations were hosted by Canada and conducted in a hybrid fashion; 40 UK officials travelled to Ottawa for in-person discussions and a further 145 attended virtually from the United Kingdom. Technical discussions were held across 34 policy areas over 52 separate sessions.

During this round, the UK set out its policy positions, having tabled text for the majority of chapters. Discussions were constructive, reflecting a determination from both sides to make progress, although we are only in the early stages of negotiations.

The negotiations continue to reflect our shared ambition to secure a progressive deal which looks to build on the UK-Canada Trade Continuity Agreement, and strengthens our existing trading relationship, already worth over £21 billion in 2021.

The third round of negotiations is due to take place in September 2022.

We remain clear that any deal the Government strike must be in the best interests of the British people and the economy.

The Government will keep Parliament updated as these negotiations progress.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 29 June 2022.

With permission, Mr Speaker, I will make a statement on the Government’s final decision regarding the UK’s steel safeguards.

A strategic steel industry is of the utmost importance to the UK, especially given the uncertain geopolitical and economic waters that we are all charting. Trade remedies are one of the ways that Government can protect their businesses. Trade remedies tackle issues of dumping, unfair Government subsidies or, as in the case of safeguards, give businesses time to adjust to unforeseen increases in imports.

When we left the EU, the UK rolled over the relevant trade remedies that were already in place. That included safeguards on 19 different categories of steel imported into the UK from the rest of the world. Last year, the Trade Remedies Authority reviewed those measures and recommended keeping the safeguard on 10 categories of steel and removing it on nine. On 30 June 2021, the Government announced that they would extend the safeguard, as recommended by the TRA, on 10 product categories of steel for three years and remove it on four of the remaining nine, but that they would extend the safeguard for one year on five categories of steel to allow further time to review them.

In March this year, we passed legislation to allow the Government to take responsibility for the conduct of transitional reviews and reconsiderations of any transitional review. In March, I called in the reconsideration of the steel safeguards with the new authority. The TRA has since completed additional analysis for my consideration. I have considered its report and findings and have concluded that there would be serious injury, or the threat of serious injury, to UK steel producers if the safeguards on the five additional categories of steel were to be removed at this time.

Given the broader national interest and significance of this strategic UK industry and the global disruptions to energy markets and supply chains that the UK faces, we have concluded that it is in the UK’s economic interest to maintain these safeguards to reduce the risk of material harm if they are not maintained. I am therefore extending the measure on the five steel categories for a further two years until 30 June 2024, alongside the other 10 categories. That means that the safeguard will remain in place on all 15 categories, updated from 1 July to reflect recent trade flows.

The Government wish to make it clear to Parliament that the decision to extend the safeguards on the five product categories departs from our international legal obligations under the relevant World Trade Organisation agreement as it relates to the five product categories. However, from time to time, issues may arise in which the national interest requires action to be taken that may be in tension with normal rules or procedures.

The Government have therefore actively engaged with interested parties—including those outside the UK—on the future of the UK safeguard, and have listened to the concerns raised, including the needs of the many thousands of people employed throughout our downstream steel industry, who play a vital role in the economic life of the UK. Throughout the investigation, downstream users of steel have raised concerns about difficulties in sourcing some steel products in the UK, particularly those classified under category 12. I have listened to those concerns and am acting to protect this vital part of the economy by increasing the tariff rate quota on category 12A to ensure that it better reflects trade flows.

The Government have also decided to suspend the safeguard measure for steel goods coming from Ukraine for the next two years. The Government are clear that we will do everything in our power to support Ukraine’s brave fight against Russia’s unprovoked and illegal invasion and to ensure long-term security, prosperity and the maintenance of the world order from which we all benefit. The Government have already removed all tariffs under the UK-Ukraine free trade agreement to zero to support Ukraine’s economy. This decision means that Ukrainian steel will not be subject to the additional safeguard quotas and duty.

These are unusual times. The aftershocks of the gravest pandemic have combined with the biggest war in Europe since 1945, the spike in energy costs is creating huge stresses on manufacturing, global steel markets are facing persistent overcapacity, and the TRA’s findings provide clear evidence of serious injury or the threat of serious injury to our UK producers. The Government have a duty to use our democratic mandate to the greatest possible effect to protect the interests of the British people and provide leadership in these challenging times. On balance, we have therefore decided that it is in the vital public interest that the Government act to protect the steel sector, which is why we have taken these steps.

We believe that our approach is in the public interest. The decision has been taken collectively and with reference to the ministerial code, noting the conflict that I have outlined. It has been a finely balanced decision. Steel is a vital industry for the UK and is in constant use in our everyday lives, but the global position for steel production is challenging. The use of unfair subsidies contributes to global overcapacity, putting domestic industries at risk around the world, so the measures that I am announcing today will further support our steel industry and those who work in it. They come on the back of the Government’s having secured an expansive removal of section 232 tariffs on imports of UK steel and aluminium products into the USA, which came into effect earlier this month. The tariff-free volumes that we have secured mean that UK steel and aluminium exports to the US can return to levels not seen since before 2018.

It is important to remember that safeguards are a temporary, short-term measure. We will continue to work with international partners, alongside other Departments, to support our domestic steel sector for the long term. I hope that the House will support the Government’s stance in defending our strategically important steel sector. I commend this statement to the House.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 22 June 2022.

On Friday 17 June, we hosted a UK-Ukraine infrastructure summit in London. The summit, with Prime Minister of Ukraine, Denys Shmyhal, and Minister of Infrastructure of Ukraine, Olexandr Kubrakov, brought together Ukrainian Ministers and business leaders for talks on rebuilding Ukraine after the conflict and ensuring its long-term prosperity.

Discussions identified where UK companies have world-class skills that can support reconstruction efforts—such as digital infrastructure, water and sanitation, energy, homes, and transport.

During the summit, we signed a memorandum of understanding with Ukraine which set out elements of UK support for reconstruction efforts and established a joint taskforce, which will help build partnerships between UK and Ukrainian businesses to assist the reconstruction of infrastructure in and around Kyiv.

The taskforce will support greater collaboration between the UK’s world-class infrastructure, energy, and transport companies and Ukrainian public organisations and private sector businesses. This will help plan for the future as well as repairing damaged and destroyed infrastructure, including transport systems, homes, and bridges more efficiently, safely and sustainably.

The UK has already committed to provide a combined economic, humanitarian, and military support package to Ukraine worth over $3 billion. UK Export Finance has also pledged to retain its £3.5 billion-worth of financial support for trade to Ukraine—helping the country to fund its reconstruction projects and allowing UK exporters and Ukrainian buyers to access the finance they need to trade commercially.

The UK has introduced one of the largest and most severe packages of economic sanctions against Russia. Measures cover over £4 billion-worth of products that are traded with Russia, 1,000 individuals and 100 entities in key sectors such as defence, crippling Putin’s war machine.

We also announced changes to trade remedy measures relating to the conflict. This includes reallocating ringfenced market access for steel imports from Russia and Belarus to other countries, including Ukraine.

The UK will do everything in its power to support Ukraine’s brave fight against Russia’s unprovoked invasion and to ensure its long-term security and prosperity.

The statement made by Anne-Marie Trevelyan, the Secretary of State for International Trade, in the House of Commons on 22 June 2022.

Today I am formally launching free trade negotiations between the UK and the Gulf Co-operation Council (GCC) from Riyadh, Saudi Arabia, where I am meeting the GCC Secretary General, His Excellency Dr Nayef Falah M. Al-Hajraf, and Ministers from the six GCC member states.

In line with our commitments to scrutiny and transparency, the Department for International Trade has published, and placed in the House Libraries, more information on these negotiations. This includes:

The UK’s strategic case for a UK-GCC Free Trade Agreement (FTA).

Our objectives for the negotiations.

A summary of the UK’s public consultation on trade with the GCC.

A scoping assessment, providing a preliminary economic assessment of the impact of the agreement.

The Gulf Co-operation Council represents Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). These six countries are home to 54 million people and have a collective economy of £1.2 trillion.[1]

The GCC is equivalent to the UK’s seventh largest export market, and total trade was worth £33.1 billion in 2021. An FTA would be a substantial opportunity for both our economies and a significant moment in the UK-GCC relationship. It will grow the economy, support jobs and the levelling up agenda.

Government analysis shows that an FTA is expected to increase trade by at least 16%, add at least £1.6 billion a year to the UK economy and contribute an additional £600 million or more to annual UK workers’ wages.

All regions and nations of the UK are set to benefit from a trade deal with the GCC, supporting the Government’s levelling up agenda. Industries outside of London are expected to benefit most, with the east midlands, west midlands, north-east and Yorkshire and the Humber in line for the greatest proportional gains.[2]

The GCC countries are undergoing a period of economic change and they all have ambitious vision strategies, which highlight areas for future economic growth and development. Demand for international products and services is expected to grow rapidly to £800 billion by 2035, a 35% increase, which will create significant opportunities for UK firms. Now is the time to strike an ambitious and modern trade deal.

A strong trading relationship will allow the UK to play to our strengths as a manufacturing powerhouse and a world leader in technology, cyber, life sciences, creative industries, education, Al, financial services and renewable energy.

UK businesses in these industries have a role to play in supporting the GCC countries as they diversify their economies to move away from a reliance on fossil fuels and towards knowledge-based and green economies. The UAE, for example, has set a target of generating 50% of its electricity from renewable sources by 2050.

UK goods exporters could benefit from reduced or zero tariffs, making their products more competitive in the GCC market. For example, UK clothing, ceramics and wind turbine parts currently face tariffs of up to 15%. British farmers and food and drink producers can also benefit from new export opportunities for products, including cereals—up to 25% tariff—and chocolate—up to 15% tariff—since the GCC countries import virtually all of their food.[3]

The UK and GCC countries share an important investment partnership, with at least £30 billion already invested in each other’s economies, and an FTA will help to strengthen this even further. This will support jobs throughout the UK and the GCC countries.

The UK will continue to uphold our high environmental, labour, food safety and animal welfare standards in our trade agreement with the GCC.

The first round of FTA negotiations will take place over the summer. As negotiations progress, I will ensure that parliamentarians, UK citizens and businesses are provided with regular updates.

[1] IMF estimate for 2021, World Economic Outlook April 2022.

[2] Based on the percentage increases in the scoping assessment.

[3] Tariffs in these sectors are mostly 5% across the GCC where in some cases individual countries charge higher tariffs on specific products. Note that tariffs on chocolate does not include products containing alcohol.

The statement made by Anne Marie-Trevelyan, the Secretary of State for International Trade, in the House of Commons on 14 June 2022.

Today, I am proud to announce that the UK-Singapore digital economy agreement (DEA) enters into force, following the completion of the necessary domestic procedures on both sides. This will allow UK businesses to start benefiting from the provisions contained within the agreement, helping them to trade and grow.

This groundbreaking agreement is the world’s most innovative digital trade agreement, concluded as it was between two of the most advanced digital trade nations. The UK-Singapore digital economy agreement is deeper and wider than previous trade agreements covering the modern digital economy. Complementing and building on the G7 digital trade principles that we brokered under the UK’s G7 presidency, the Singapore digital economy agreement will serve as an ambitious model for modern trade agreements in future—cementing the UK’s place as a world leader in digital trade.

By securing open digital markets, prompting the free flow of trusted data, and cutting red tape through overhauling outdated paper-based processes, businesses across the UK can expand into new markets and thrive.

Now that this groundbreaking trade agreement has entered into force, businesses and consumers across the UK will start to benefit from:

Support to UK businesses to access Singapore’s digital markets. Digitally delivered services make up around a third of UK services trade globally—this was worth over £361 billion in 2020, and this deal will help strengthen this further.

Securing and locking-in trusted cross-border data flows, the foundation for today’s modern digital economy—representing up to 26.3% of UK GVA in 2019. This will enable businesses to trade more easily, cheaply, and more quickly, facilitating everything from more efficient manufacturing and supply chains to more reliable infrastructure.

Cutting red tape by supporting the overhaul of outdated, paper-based trading systems. For example, the agreement contains specific commitments around maintaining legal frameworks that enable the digitisation of trade documents such as bills of lading.

Keeping our country and citizens safe through deepening our partnership with Singapore in areas such as cyber-security, as well as legally binding commitments covering online consumer protection and personal data protection.

Supporting our bid to join the comprehensive and progressive trans-Pacific partnership (CPTPP), alongside Singapore and 10 other vibrant trading nations. Membership would mean access to a £9 trillion free trade area with some of the biggest and fastest-growing markets in the world.

With this agreement coming into force, our economy and brilliant businesses can build back better from the pandemic and start to benefit from easier, quicker, and more trusted access to the valuable Singapore market.