Tag: Business and Trade Department

The press release issued by the Department for Business and Trade on 30 October 2023.

Industry Minister Nusrat Ghani is in Mongolia in an historic visit to boost the UK’s critical minerals supply chains.

The press release issued by the Department for Business and Trade on 26 October 2023.

Britain’s most sought-after luxury fashion designers will join a landmark trade mission to Japan to boost exports to the Japanese market ahead of the G7 summit.

• First Secretary-led luxury fashion trade mission to Japan since 2017 including sought after brands such as Christy’s and Freya Rose.
• Trade Secretary Kemi Badenoch to announce largest ever UK government backed renewables export deal in partnership with Japan – worth more than £130 million in UK made parts.
• At G7 trade talks in Osaka, Trade Secretary will champion free and fair trade and work to develop resilient global economic supply chains.

Britain’s most sought-after luxury fashion designers including Ettinger and Freya Rose will join a landmark trade mission to Japan to boost exports to the Japanese market.

The trade mission, led by Business and Trade Secretary Kemi Badenoch, is the first Secretary-led trade mission of its kind since 2017, following a luxury goods roundtable discussion in London where some of the delegates presented the exciting opportunities that Japan has to offer.

The delegation met Japanese fashion buyers on Wednesday with support from the UK Government and will showcase their products – from hand painted scarves to lab grown jewellery – at the British Embassy in Tokyo to high profile Japanese influencers including Yu Masui.

The visit seeks to increase exports of UK luxury brands to the Japanese market, as part of the Business and Trade Secretary’s mission to hit £1 trillion worth of UK exports by 2030. In 2022, UK fashion goods exports to Japan totalled £134 million, which the department aims to boost even further.

Business and Trade Secretary Kemi Badenoch said:

I’m delighted to be travelling to Japan with iconic British brands to bang the drum for UK business, and help more companies take full advantage of the opportunities on offer from our free trade deals such as the UK-Japan agreement and CPTPP.

The G7 trade summit gives me the opportunity to continue to champion free and fair trade on behalf of UK PLC, helping remove barriers to trade, strengthen supply chains and ensure the global trade rules work for British businesses.

The Business and Trade Secretary will also represent the UK at the G7 Trade Ministerial Meeting in Osaka, where she will bang the drum for free and fair trade and discuss the challenges countries face in diversifying supply chains to meet the needs of the future. During the two-day programme Badenoch is expected to meet with her counterparts including Yasutoshi Nishimura, Katherine Tai and EU Commissioner Dombrovkis.

Badenoch will host a Free Trade Agreement (FTA) Committee with Foreign Minister Yōko Kamikawa where she will look to further deepen the UK’s trading relations with Japan, building on the FTA signed in 2020. This has benefited British businesses by simplifying the rules of origin and low-zero tariffs, removing significant barriers to trade, supporting businesses to export their goods to this new and exciting market.

This follows the Prime Minister’s meeting with Japan’s Prime Minister Fumio Kishida in May to agree the Hiroshima Accord. Building on our shared values, the agreement sets out our intention to work together on global security, resilience, and innovation issues. Our trade relationship is strong with total UK exports to Japan amounted to £14.2 billion in the four quarters to the end of Q2 2023, an increase of 7.1% on the previous year.

In a further move to boost British exports to Japan, the Secretary of State will also announce the largest UK Government project finance guarantee for a renewables project: more than £130 million in UK goods, including Siemen Gamesa in Hull to build an offshore wind farm in Taiwan. The project is delivered by UK Export Finance in collaboration with NEXI, Japan Bank for International Cooperation (JBIC) and Mitsui. The funding will secure jobs and boost the offshore wind industry in the UK and supercharge UK Japan collaboration on renewable projects in developing countries.

Background

The business delegation includes:

• Anabela Chan: Anabela Chan is the first fine jewellery brand in the world to champion laboratory-grown gemstones and recycled metals, paired with high jewellery design and artisanal craftsmanship; always with a focus on ethical and sustainable innovations.
• Christy & Co: Christy & Co Ltd has been manufacturing fine hats in England since 1773.  Today, it still produces its hats and caps using traditional methods at its factory in Oxfordshire.
• Ettinger: Ettinger have been designing and manufacturing leather goods in their UK factory since 1936 and now supply retailers and consumers all over the world. Ettinger were granted the Royal Warrant from the Prince of Wales in 1996, which is a seal of approval for quality and trust.
• Freya Rose: Freya Rose is a multi-award-winning British shoe, bag and jewellery designer, established in 2010.  Freya Rose is renowned for her unique collections of sculptural, wearable works of art.
• Hemingsworth: Hemingsworth is renowned for its high-end ready-to-wear swimwear and leisurewear for men.  All garments are meticulously crafted and proudly produced in the UK, using only the finest materials and trims.
• Rapport: Rapport craft accessories for preserving luxury watches and jewellery.   The company was established in London in 1898 by the horologist Maurice A. Rapport and today, four generations later, is still run by the Rapport family.
• Sabina Savage: Sabina is a British artist and print designer known for her exquisite, hand-rendered illustrations, printed on silk, wool and cashmere scarves, who founded her eponymous brand in 2014.
• Swaine: Established in 1750 as whip and saddlery makers, the House of Swaine is the oldest name in luxury goods, serving the British Royal Family, nobility and gentry for hundreds of years.

The press release issued by the Department for Business and Trade on 25 October 2023.

First Working Group meeting under the UK – Oklahoma trade MoU takes place in Oklahoma City, OK.

Building on the enduring friendship and historical ties between the state of Oklahoma and the United Kingdom, on Tuesday 24 October 2023, representatives of both governments held the inaugural working group meeting created by the Memorandum of Understanding (MoU) on economic cooperation and trade relations signed in April this year.

Richard Hyde, Consul General for the United Kingdom in Houston, chaired the meeting hosted by Secretary Ken McQueen (Secretary of Energy and the Environment) in Oklahoma City, with officials from the respective governments and the Scottish and Northern Ireland Devolved Administrations. The discussion focused on identifying new opportunities for increasing bilateral trade in clean energy technologies, zero-emissions vehicles, agriculture, and public sector procurement. UK companies already employ over 10,000 people in the Sooner state. Participants used the working group to jointly plan activities that will further strengthen commercial links between the UK and Oklahoma and build on a strong trading relationship worth £294 million ($363 million) in goods trade in 2022.

The working group highlighted opportunities for further work and knowledge exchange to develop all areas of the MoU, specifically, on carbon sequestration and hydrogen fuel innovation, electric vehicle infrastructure and technology, agriculture, and Government/State procurement. It was agreed that subject experts on both sides would take forward detailed discussion and report back ahead of the next working group meeting which will involve representatives from industry as part of the continued work to deliver for businesses in the UK and Oklahoma.

The press release issued by the Department for Business and Trade on 17 October 2023.

On October 9, 2023, the UK Minister of State for International Trade, Nigel Huddleston MP, and the Colombian Minister of Trade, Industry, and Tourism, Germán Umaña, met in Bogotá, Colombia, for the third edition of UK-Colombia trade dialogues.

Ministers welcomed the longstanding and deep bilateral trade relations enjoyed between Colombia and the United Kingdom and committed to promote inclusive and sustainable trade that drives economic growth, business opportunity and job creation.

Ministers agreed on the importance of promoting sustainable foreign investment that, through value chains, can result in the development of new technologies and enhance each country’s competitiveness.

Ministers agreed to work together to increase support for the improvement of regulatory policy of mutual interest to Colombia and the United Kingdom. In addition, the ministers agreed to develop a joint road map as a mechanism to establish a methodology for holding annual UK-Colombia trade dialogues and assessing delivery of joint initiatives and collaboration.

Minister Huddleston set out the United Kingdom’s world-class offer in the renewable energy, infrastructure, and life sciences sectors, and the potential for closer working to help deliver Colombia’ economic, environmental and social ambitions.  He highlighted the United Kingdom’s willingness to exchange experiences and best practices in harnessing innovation and creating enabling environments to deliver for citizens in these sectors.

Minister Umaña expressed Colombia’s desire to modernise the international and bilateral frameworks governing investments.

Ministers celebrated the recent success in delivering joint objectives in key sectors of future growth:

• Renewable Energy: Ministers agreed to co-ordinate strategies for the regulatory development of hydrogen and offshore wind energy in Colombia to help develop the market.
• Life Sciences: Ministers welcomed the practical measures recently taken to support innovation on the sector and agreed that further co-operation can help deliver Colombia deliver its healthcare objectives.
• Infrastructure: Ministers welcomed the close working on sustainable transport infrastructure, which will be of benefit to Colombian citizens and help meet climate commitments. Ministers encouraged the implementation of the railway master plan.
• Agribusiness: Ministers expressed their pleasure in progress promoting sustainable land use and urged continued collaboration to open new market opportunities for agricultural products.

Ministers emphasized the importance of working together on the global stage, including in the WTO.  They agreed to continue discussions in the run up to next year’s MC13 to ensure that Ministers are able deliver tangible progress in areas such as services and climate change and safeguard the organisation’s effectiveness.

Ministers recalled the deep bond of friendship between the two countries, symbolised by the levels of cooperation in trade and investment discussed during the Dialogue. Minister Huddleston welcomed the progress that Colombia had made in its peace process and offered United Kingdom continued support in helping build sustainable and prosperous communities in former conflict areas.

The press release issued by the Department for Business and Trade on 17 October 2023.

Update on the second round of negotiations for an enhanced UK-Switzerland Free Trade Agreement.

The press release issued by the Department for Business and Trade on 16 October 2023.

The Government has withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements.

The Government has today [16 October] withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements.

Instead, the Government will pursue options to reduce the burden of red tape to ensure the UK is one of the best places in the world to do business.

Draft regulations published in July would have added certain additional corporate and company reporting requirements to large UK listed and private companies, including an annual resilience statement, distributable profits figure, material fraud statement and triennial audit and assurance policy statement.

This would have incurred additional costs for companies by requiring them to include additional layers of corporate information in their annual reports.

Since July, the Government has completed a call for evidence on existing non-financial reporting requirements, which has identified a strong appetite from businesses and investors for reform, including to simplify and streamline existing reporting.

The Business Secretary has now decided to withdraw these regulations, and will be setting out options to reform the wider framework shortly to reduce the burden of red tape on businesses.

The Government remains committed to wider audit and corporate governance reform, including establishing a new Audit, Reporting and Governance Authority to replace the existing Financial Reporting Council. We will bring forward legislation to deliver these reforms when Parliamentary time allows.

Business Minister Kevin Hollinrake said:

Since the Government first published these draft regulations in July, discussions with businesses and stakeholders have highlighted a strong appetite for existing reporting requirements to be simplified.

The Government has decided not to implement the draft regulations at this time, while we continue at pace with our plans to reform the wider non-financial reporting framework.

This will deliver a more targeted, simpler and effective framework for both business and investors, reinforcing that the UK is one of the best places in the world for firms to list and to do business.

This move will form part of a wider package of reform from the Government to streamline and simplify regulation for businesses.

It also builds on the 12-week call for evidence launched earlier this month to carry out an in-depth review of all regulators across the UK, in a campaign to bring about smarter regulation and make companies’ lives easier.

Julia Hoggett, CEO, London Stock Exchange plc, said:

This is a welcome step and will boost the competitiveness of the UK. Good corporate governance should be an enabler for companies to grow and reach their full potential in the interests of all stakeholders. However, founders, company boards and, increasingly, shareholders have highlighted that the UK’s approach of ever-increasing corporate governance processes has, however well-intentioned, impacted the effectiveness of listed companies and the standing of the UK over other capital markets.

Releasing listed companies from the additional reporting burdens that were proposed is another step toward the level playing field UK companies need to compete and drive the growth economy to the benefit of all stakeholders. If companies are to have the certainty they need, it is vital that this reform and steps to enhance the competitiveness of the UK, are backed by political consensus.

The Capital Markets Industry Taskforce said:

This decision is an important sign that the Government does listen to business and that the Business Secretary is prepared to remove incremental burdens on business.

We are committed to continuing to work with the Government on more steps to ensure the UK remains a competitive environment for business and investment, including in the area of corporate governance.

David Postings, CEO, UK Finance, said:

I welcome the news that the Department for Business and Trade has listened to feedback and withdrawn these regulations.

This is an important step in terms of making the UK an attractive place for businesses to grow and list. The government now has the opportunity to make further reforms to create a simpler, streamlined and more effective reporting and corporate governance regime.

Burkhard Keese, Chief Financial Officer, Lloyd’s said:

Lloyd’s appreciates the close and productive engagement we have had with Government on corporate governance reform.

We welcome this first step that the government is taking to ensure that the UK has a proportionate and competitive corporate governance framework and look forward to ongoing collaboration as its work continues in this area.

Miles Celic, Chief Executive Officer, TheCityUK:

The government’s decision to withdraw this proposal is a significant step which will reaffirm the UK’s reputation as a business-friendly destination.

We welcome the government’s support for fostering a growth environment in the UK and our industry remains committed to working with the public sector to increase the attractiveness of the UK as a public equity listing market and to send a strong signal globally that the UK is an ideal destination for business and investment.

The press release issued by the Department for Business and Trade on 16 October 2023.

The UK has secured a two-year extension to rules which help British companies to access lower or zero tariffs when selling goods to South Korea.

The UK has secured a two-year extension to rules which help British companies to access lower or zero tariffs when selling goods to South Korea.

The extension has been secured under the UK-South Korea free trade agreement and comes as welcome news for businesses who can continue to avoid the high tariffs imposed by South Korea on products entering the country.

It also comes ahead of the launch of negotiations on a new, modernised trade deal between the UK and South Korea which will cover new sectors like digital, expected before the end of the year.

South Korea is the 13th largest economy in the world and set to grow rapidly. Thanks to a burgeoning middle class, its import market is expected to grow 45% by 2035. The UK’s trade with Korea has more than doubled since the original FTA was negotiated.

Goods make up the majority of UK exports to South Korea, with £7.3 billion worth exported last year. A broad range of British manufacturing sectors are expected to benefit from the extension, including food and drink and automotive, which is the second largest British export to South Korea.

Minister for International Trade Nigel Huddleston said:

This is fantastic news for UK businesses who can continue selling their brilliant goods with confidence to South Korea, a fast-growing market of the future with a high demand for quality British products.

It provides welcome certainty as we prepare to kickstart negotiations on an exciting new trade deal set to turbocharge our already thriving £18 billion trading relationship and boost British exports.

When the UK negotiated the original trade agreement with South Korea, rolled over from our membership of the EU, time-restricted clauses were agreed to allow for the use of EU content in UK products in meeting the EU-South Korea rules of origin and on shipping goods via the EU. Both clauses were set to expire on 1 January 2024.

The extensions will apply for a further two years while the UK and South Korea work on new, permanent rules as part of an enhanced free trade agreement. Today’s agreement allows for both parties to extend this period further, if needed.

Society of Motor Manufacturers and Traders Chief Executive Mike Hawes said: 

We welcome this announcement as it avoids the re-imposition of duties from January 2024. In the first half of the year, South Korea was our seventh biggest car export market and the third biggest supplier of new passenger cars for UK buyers – so duty liabilities would have been bad for both sides.

We look forward to the start of negotiations and swift conclusion of a modernised trade deal that delivers more benefits to our respective automotive sectors, in particular boosting trade in EVs and related technologies.

Food and Drink Federation Director of Sustainability and Growth Balwinder Dhoot said:

This is welcome news for food and drink manufacturers and gives continued certainty to exporters until a new and ambitious agreement is negotiated. This will help businesses to export more products and ensures continued flexibility to use seasonal imported ingredients that complement our industry’s use of domestic produce.

Talks for a new trade deal are anticipated to kick off this year. A public consultation was completed earlier this year to identify business priorities for the deal.

The new deal will upgrade our trading agreement with South Korea, ensuring a more modern and fit-for-purpose deal that meets the specific needs of the UK. This is expected to include provisions for digital trade and dedicated help for smaller businesses, which will support economic growth and jobs.

The press release issued by the Department for Business and Trade on 11 October 2023.

On Tuesday 10 October, the UK hosted the Principals’ meeting of the Minerals Security Partnership for the first time, at the London Metals Exchange.

The UK hosted a Principals’ meeting of the Minerals Security Partnership (MSP) for the first time ever in London yesterday (10 October), which focused on boosting responsible investment and sustainable finance in critical mineral supply chains.

Industry Minister Nusrat Ghani co-chaired the historic meeting of the MSP at the London Metals Exchange together with US Under Secretary for Economic Growth, Energy and the Environment Jose Fernandez yesterday afternoon.

The MSP is a group of 14 partners – representing over 50 percent of global GDP – that aims to catalyse public and private sector investment in responsible critical mineral supply chains globally.

Minister for Industry and Economic Security Nusrat Ghani said:

By 2040, the world will need four times more critical minerals than it does today. There’s a global rush towards securing these, so it is vital we secure them for the UK supply chain to support both our economy today and jobs for the future.

I was honoured to co-chair the latest Minerals Security Partnership meeting with Under Secretary Fernandez as we seek to boost investment in critical minerals and secure our supply chains for the long term.

Jose Fernandez, US Under Secretary for Economic Growth, Energy and the Environment said:

We have to work together to ensure that wherever there is new development of critical mineral projects, there is also fairness: respect for communities and host governments, local value addition and economic development and environmental protection.

At the meeting yesterday, MSP partners confirmed that they are driving forward a range of projects which will help to develop responsible critical mineral supply chains, including:

• 11 projects in upstream mining and mineral extraction, four projects in midstream minerals processing, and two projects in recycling and recovery – including a UK-based recycling technology led by HyProMag, commercialising rare earth magnet recycling (further details below).
• One project focusing primarily on lithium; three on graphite; two on nickel; one on cobalt; one on manganese; two on copper; and seven on rare earth elements.
• Five projects in the Americas, seven projects in Africa, three projects in Europe, and two projects in Asia-Pacific.

The meeting yesterday enabled collaboration between MSP partners, governments of existing and emerging mineral economies and the private sector to accelerate more extraction, processing and recycling projects across the critical minerals value chain, while promoting high environmental, social, and governance standards and ensuring economic prosperity for all.

MSP partners participating in the meeting included Australia, Canada, Finland, France, Germany, Japan, India, Italy, the Republic of Korea, Norway, Sweden, the UK, the USA and the EU (represented by the European Commission).

A select group of additional mineral-producing countries – including Brazil, Indonesia, Kazakhstan, Mongolia, South Africa and Zambia – also took part in the meeting.

About HyProMag:

• HyProMag is commercialising rare earth magnet recycling using Hydrogen Processing of Magnet Scrap (HPMS) technology, developed at the University of Birmingham, UK, which can liberate and recycle magnets from end-of-life scrap.
• Having commissioned the UK’s first rare earth magnet recycling pilot plant at the University of Birmingham in 2022, alongside the UK’s only facility to make sintered rare earth magnets, HyProMag, together with the University of Birmingham, are developing a large-scale recycling plant at Tyseley Energy Park, Birmingham, with first production by the end of this year and supported with funding from UK Research and Innovation.
• Investment from UK-Canada listed Mkango Resources in 2020 has helped scale-up and catalyse international growth initiatives, including in Germany where HyProMag has established a sister company, HyProMag GmbH, and in the U.S. through a new Maginito-CoTec 50:50 joint venture company, with evaluation of other jurisdictions underway.  Maginito (79.4% Mkango; 20.6% CoTec) acquired HyProMag in 2023.
• In line with MSP’s commitment to recycling and reuse, the development of new sources of recycled rare earths can accelerate development of sustainable and competitive rare earth magnet production.

The press release issued by the Department for Business and Trade on 9 October 2023.

International Trade Minister kicks off a multi-state visit to Peru and Colombia to meet counterparts and push forward action to resolve trade barriers.

The press release issued by the Department for Business and Trade on 9 October 2023.

£89 million of funding has been awarded to 20 cutting edge net zero tech projects, reinforcing the UK as a world leader in zero emissions vehicle technology.