Tag: Business and Trade Department

1. The Third ASEAN Economic Ministers (AEM) – United Kingdom of Great Britain and Northern Ireland (UK) Meeting was held on the 20th August 2023. The Consultation was co-chaired by H.E. Zulkifli Hasan, Minister of Trade of the Republic of Indonesia and the Rt Hon Nigel Huddleston MP, Minister of State for the Department for Business and Trade of the UK. The Meeting also welcomed H.E. Filipus Nino Pereira, Minister for Tourism, Commerce, and Industry of the Democratic Republic of Timor-Leste who joined the Meeting as an observer.
2. The Meeting was pleased to note that in 2022 the trade flows between ASEAN and the UK had risen by over 20% since 2021 in nominal terms, demonstrating that our trade is recovering post COVID-19. According to statistics, total UK trade with ASEAN increased by 21.4 per cent from £38.3 billion in 2021 to £46.5 billion in 2022. The Meeting also noted that the UK was the 7th largest investor into ASEAN according to Foreign Direct Investment (FDI) flows in 2022. In 2021, the stock of outward FDI from the UK to the ASEAN region was at least £25.1 billion.
3. The Meeting exchanged views on the regional and global challenges, such as the multidimensional impact of the pandemic, climate change, heightened volatility in the global financial market, inflationary pressures, and geopolitical tensions that impact global food and energy security, all of which could potentially affect economic and trade relations between ASEAN and the UK. The Meeting noted that the geopolitical tensions in some parts of the world continue to impact the global economy, i.e. constraining growth, contributing to inflationary pressures, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risks. The Meeting joined the call of ASEAN at the 56th ASEAN Foreign Ministers’ Meeting for compliance with the UN Charter and international law as well as for a peaceful conflict resolution. The Meeting affirmed its commitment to exert utmost efforts to enhance cooperation between parties to mitigate the economic impact of these geopolitical tensions to the region as well as to their bilateral trade and economic relations, particularly on issues related to food and energy security. The Meeting emphasised that in order to navigate the challenging global environment, stronger and more impactful cooperation is essential.
4. The Meeting reaffirmed its commitment to a rules-based, non-discriminatory, open, free, inclusive, equitable, and transparent multilateral trading system, with the World Trade Organisation (WTO) at its core. The Meeting also highlighted its support to strengthen the WTO and ensure that it remains fit-for-purpose and forward looking by pursuing reforms to improve all its functions, including to have a fully functioning dispute settlement system. The Meeting also expressed determination to collaborate and coordinate on areas of common interest and contribute to the success of the 13th WTO Ministerial Conference (MC13), scheduled to be held in Abu Dhabi, United Arab Emirates, in 2024. The Meeting also recognised the need to look beyond MC13 and underlined the importance of strengthening the multilateral trading system so that it can respond to future challenges.
5. The Meeting thanked the UK for their support for Indonesia’s Chairmanship of ASEAN 2023 under the theme ‘ASEAN Matters: Epicentrum of Growth’. The Meeting noted the UK’s support of Indonesia’s Priority Economic Deliverables, specifically the ASEAN Framework for Industrial Project Based Initiatives and the Roadmap for Harmonising Standards to Support the Sustainable Development Goals. The Meeting noted the conduct of the UK-ASEAN Forum on Regional Industrial Integration, held at the ASEAN Economic Ministers Meeting 2023.
6. The Meeting noted that the UK and ASEAN are co-designing the new ASEAN-UK Economic Integration Programme, where the UK Government plans to spend up to £25 million to support ASEAN economic integration over the next 5 years.
7. The Meeting welcomed the progress in delivering the Work Plan to Implement the Joint Ministerial Declaration for Future Economic Cooperation (Work Plan) following its adoption last year. In this regard, the Meeting noted that a total of 26 activities, across 11 priority areas involving 26 ASEAN Sectoral Bodies, were carried out since last year, with an additional 60 activities planned for the succeeding years.
8. The Meeting welcomed the continued significant contribution of the UK in support of the ASEAN Economic Community (AEC) specifically in the areas of financial services, digital economy, science and technology, investment, competition, intellectual property, skills development, resilient supply chains, and standards. The Meeting welcomed the UK’s continued focus on regulatory excellence, supporting ASEAN to build regulatory and standards systems which support global trade and investment.
9. The Meeting noted the implementation of the ASEAN Sustainable Leadership in Infrastructure Programme. The first cohort graduated in 2023, and the Meeting welcomed the course being available to a second cohort from across ASEAN. The Meeting further noted the UK’s British Investment Partnerships toolkit, which provides a range of support to ASEAN Member States, and welcomed the series of activities implemented under the ASEAN-UK Digital Innovation Partnership (DIP), including roundtable discussions and business matching at the UK-Southeast Asia Tech Week, held in Jakarta in March 2023. The Meeting noted the launch of the ‘Green Finance: Opportunities for Deeper UK-ASEAN Cooperation’ Report, in the margins of UK-Southeast Asia Tech Week held in March 2023 in Jakarta, as well as the UK’s support for the ‘ASEAN Intellectual Property Ecommerce Gap Analysis’.
10. The Meeting looked forward to the outcome of the discussion on the proposed ASEAN-UK Collaboration on Financial Services. This collaboration aims to support ASEAN’s financial integration through strengthening its regional market infrastructure, improving ASEAN’s financial literacy and access to finance for MSMEs, and supporting ASEAN’s development of green finance.
11. The Meeting also noted the UK’s focus on science, technology and innovation (STI) cooperation through the delivery of the ASEAN i-Teams Project in collaboration with the University of Cambridge, which aims to develop the culture of technology commercialisation in the region. Two additional STI initiatives are under consideration for implementation: the Call on Research and Innovation for Development in South-East Asia (RIDA), which aims to address important issues in the field of health, climate resilience, energy transition, and agriculture, and; the UK-ASEAN Regional Training and Workshop on Engineering Biology that seeks to enhance Southeast Asian government officials’ grasp of engineering biology’s role in responsible innovation, economic security, and addressing global challenges.
12. The Meeting noted the UK’s planned engagement with ASEAN to boost micro, small, medium enterprises (MSME) development and support women’s economic empowerment.
13. The Meeting noted the importance of COP28 in November in addressing the urgent challenge of keeping global average temperature rise below 1.5°C, and developing and implementing solutions to the climate, energy and biodiversity crises. The Meeting shared the view that preventing the most severe impacts of climate change is essential to ensure ASEAN’s long-term sustainable growth. The Meeting welcomed the development of the ASEAN-UK Green Transition Programme, which will help support climate policies across the region, strengthen the enabling environment for more green finance flows, and reduce the use of polluting sources of energy.
14. The Meeting underlined the importance of public-private sector partnership and noted the briefing by the UK-ASEAN Business Council (UKABC) on the various economic cooperation activities involving the private sector from both ASEAN and the UK, including the successful UK-ASEAN Business Forum, held in London in March 2023. The Meeting expressed appreciation to UKABC for their continuous support and invaluable contribution to strengthening trade and investment relations between ASEAN and the UK.
15. The Meeting affirmed its commitment to support Timor-Leste to be an ASEAN Member State by providing technical assistance, capacity building and other support to facilitate Timor-Leste’s integration into the mainstream of ASEAN-UK economic relations. The Meeting also encouraged the Timor-Leste government to intensify efforts towards the preparations for ASEAN membership.

• Product safety laws to be overhauled to better protect consumers when shopping online and buying modern products like smart devices
• Reformed furniture and fire safety regulations will better protect consumers in the modern home including a reduction in the use of harmful chemicals
• Plans will cut business costs and reduce unnecessary red tape with the introduction of measures like electronic labelling, enabling them to invest more in their own firms

The UK’s product safety laws – which are over 30 years old – are set to be overhauled in a bid to make them fit for emerging technologies and new shopping habits, the government has announced today (Wednesday 2 August).

Much of the UK’s product safety regime has been underpinned by outdated EU laws, with some dating back to 1987. Having left the EU, the UK can now create its own product safety regime to better suit British businesses and ensure consumers have the same protections when shopping online as on the high street.

Today’s consultation will seek views on how the UK can better regulate 21st century innovations like internet connected devices including smart watches and speakers, and artificial intelligence, while ensuring British businesses are not stifled by costly red tape.

Businesses will also save time and money thanks to the government’s proposals to introduce e-labelling – a Brexit benefit and a move that would go further than the EU. This would reduce waste, relieve industry burdens, and allow product information to be easily and regularly updated.

Business Secretary Kemi Badenoch said:

I am determined to use our post-Brexit freedoms to identify outdated EU laws placing unnecessary burdens on business and reform them to benefit both companies and consumers.

These changes will provide better consumer protections while upholding our world-leading safety standards and will also cut costs for business to ensure they have the freedom they need to innovate and thrive, helping to create jobs and grow the economy.

In addition to the Product Safety Review, we will be launching a consultation on a proposed new approach to the fire safety of domestic upholstered furniture. This will be aimed at improving fire safety standards for consumers and addressing modern day domestic hazards.

Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) said:

We welcome measures to ease the burden on small businesses while ensuring high safety standards. Regulatory requirements should be designed to be as consistent and straightforward as possible to reduce the costs of compliance for small firms.

The complexity of the current UK product safety system means that firms, especially new entrants and small businesses, can struggle to understand their obligations, resulting in hindered growth and hampered consumer choice.

The National Fire Chiefs Council:

The National Fire Chiefs Council welcome the consultation and the opportunity to be involved. We are supportive of the draft essential safety requirements as they seek to maintain and improve fire safety. This is demonstrated through the focus of stopping and delaying ignition to aid escape in the event of a fire.

A Silentnight spokesperson said:

We welcome the publishing of the new approach for consultation. We believe proposals such as representative final product testing will improve both fire and product safety, curtailing the endemic use of chemical flame retardants within the industry. Moreover, the essential safety requirements have the potential to galvanise innovation within the sector, facilitating adoption of a circular economy and achieving Net Zero.

In addition to the recent extension of CE marking, these reforms have the potential to have a hugely positive impact on hundreds of thousands of businesses in the UK currently impacted by outdated and cumbersome regulations, with the overwhelming majority of these being small or micro businesses.

The UK government is on course to have passed legislation by the end of this year which will revoke or reform more than 2,000 pieces of Retained EU Law. This comes after an earlier raft of announcements similarly aimed at helping consumers to clamp down on subscription traps and fake reviews.

The Department for Business and Trade has today announced an indefinite extension to the use of CE marking for UK businesses.

This comes as part of a wider package of smarter regulations designed to ease business burdens and help grow the economy by cutting barriers and red tape. Following extensive engagement with industry, British firms will be able to continue the use of CE marking alongside UKCA.

The Business Secretary acted urgently on this issue, to prevent a cliff-edge moment in December 2024 when UKCA was set for entry. This intervention will ensure businesses no longer face uncertainty over the regulations and can cut back on unnecessary costs freeing them up to focus on innovation and growth.

Business Minister Kevin Hollinrake said:

The Government is tackling red tape, cutting burdens for business, and creating certainty for firms – we have listened to industry, and we are taking action to deliver.

By extending CE marking use across the UK, firms can focus their time and money on creating jobs and growing the economy.

Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) said:

It’s welcome to see the continued recognition of CE marked products. This will allow time for small firms to adjust to the UKCA marking system and focus on growing their business both at home and overseas.

Stephen Phipson, CEO of Make UK, the manufacturers’ organisation said:

This is a pragmatic and common sense decision that manufacturers will very much welcome and support. This announcement will help safeguard the competitiveness of manufacturers and aid the UK as a destination for investment.

It should bring more confidence about doing business in the UK and recognises the need to work with the reality of doing business. Make UK has worked extensively with UK Government pushing hard for this decision and we are pleased the ongoing engagement has delivered this positive outcome.

The extension will provide businesses with flexibility and choice to use either the UKCA or CE approach to sell products in Great Britain.

Richard Moriarty has today (31 July 2023) been announced as the CEO of the Financial Reporting Council (FRC). He replaces Sir Jon Thompson, who has led the FRC since 2019.

The Financial Reporting Council (FRC) promotes transparency and integrity in business. It regulates auditors, accountants and actuaries, and sets the UK’s Corporate Governance and Stewardship Codes. Richard will continue the work started by Sir Jon to transform the FRC into a new regulator – the Audit, Reporting and Governance Authority.

Business Minister Kevin Hollinrake said:

Richard Moriarty is a fantastic appointment to this role. His extensive background in leadership and specialised experience in regulatory and market reform will ensure the FRC continues to ensure business integrity and transparency.

I’m grateful to Sir Jon Thompson for all his hard work in his time as CEO and wish him the best in his role as Chair of HS2.

Richard Moriarty said:

The FRC has a critical role to play in underpinning investor and public confidence in financial reporting and corporate governance in the UK. It is a privilege to be asked to lead the organisation at this important time and oversee its successful transformation into the new Audit, Reporting and Governance Authority.

I want the organisation to be ambitious for how effectively it engages with all those who have an interest in its purpose and its place in supporting the UK as a great place for business growth and investment.

Biography

Richard recently stepped down from the Board of the UK’s Civil Aviation Authority where he served as CEO for five years and deputy CEO for two years. Under his leadership the CAA earned positive recognition from independent reviews, both nationally and internationally, as a highly effective and world leading regulatory authority.

He has over 20 years of board level experience across a range of regulated sectors. Among his roles he has been CEO of the Legal Services Board, an executive director and subsequently deputy chair of the Social Housing Regulator, deputy CEO of a communications regulator and a director of a regulated water company. He is currently a non-executive and the senior independent director with a social housing association charity.

Richard has specialised in regulatory and market reform, governance and financial oversight, professional services regulation, safety cultures, economic regulation, and competition policy.  He has undergraduate and postgraduate degrees in economics, and later obtained an MBA from the University of Warwick Business School.

• UK to host 26th annual UK-Taiwan Trade Talks and strengthen the long-standing trade & investment relationship.
• Taiwan is an important trading partner for the UK, with bilateral trade worth £8.6bn in 2022.
• The Taiwan market offers significant potential for UK companies in areas such as off-shore wind and hydrogen.

Minister for International Trade Nigel Huddleston will co-host the 26th annual Trade Talks later this year with Deputy Minister Chern-Chyi Chen. They held an introductory call to discuss it today.

The UK and Taiwan have a long-standing trade relationship with annual ministerial trade talks held since 1991.

At the last Trade Talks held in Taiwan in late 2022, the UK and Taiwan discussed barriers to trade in sectors like fintech, food and drink and pharma, aimed at helping more UK firms export and invest in Taiwan. This year’s Trade Talks will take place in London and aim to help more UK firms export and invest in Taiwan in areas of mutual interest.

Minister Huddleston also spoke to John Deng, Trade Representative / Minister without Portfolio, to endorse the start of official-level talks on an Enhanced Trade Partnership (ETP), which will be underpinned by non-legally binding Memoranda of Understanding in key areas such as two-way investment, digital trade, and energy & net-zero.

The ETP will build on our ongoing collaboration through annual Trade Talks to tackle barriers to trade and promote UK expertise, deepening our relationship to take advantage of increasing commercial opportunities. Both sides will begin engaging businesses on the ETP in due course.

Like the UK, Taiwan is a champion of free and fair trade underpinned by a rules-based global trading system. The UK is already a major partner in Taiwan’s green transition, with more than 40 British companies already having set up offices in Taiwan.

The British Office holds regular discussions with the Taiwanese authorities focusing on how to enhance trade and investment ties and tackle market access issues and those relating to the wider business environment.

• Government launches new scheme to help buyers purchase UK-built ships.
• Shipbuilding Credit Guarantee Scheme expected to create hundreds of UK jobs and contribute hundreds of millions to UK economy.
• Part of £4 billion National Shipbuilding Strategy Refresh plan to revitalise UK shipbuilding sector, which contributes £2.8 billion a year to UK economy and supports 42,000 jobs.

A new government scheme to help ship buyers access finance to buy UK-built vessels and upgrade existing ones will boost Britain’s coastal communities.

Through the Shipbuilding Credit Guarantee Scheme (SCGS) the Government will act as a guarantor for lenders, unlocking credit for maritime firms.

It will help to boost the UK shipbuilding industry and drive growth in areas such as Liverpool, Plymouth, the Solent, Rosyth, Clydebank and Belfast.

Minister for Industry and Economic Security Nusrat Ghani said:

Shipbuilding is an integral part of the UK’s industrial identity and through this scheme we are backing our great maritime businesses to get ahead of the competition.

With cutting-edge vessels designed and built here in the UK this will be a boost to high-skilled careers and every company involved in the supply chain for shipbuilding, helping us to grow the economy.

The SCGS is expected to create hundreds of new jobs and contribute hundreds of millions of pounds to the economy, according to government estimates based on the demand for commercial shipbuilding in the UK.

The scheme also forms part of the Government’s £4 billion plan to revitalise UK shipbuilding and coastal communities through the National Shipbuilding Strategy Refresh announced last year.

Industry Minister Nusrat Ghani will formally launch the scheme at an event onboard a Thames Clippers’ boat – built at Wight Shipyard, one of the UK firms which stands to benefit from the new scheme – today (26 July) in London.

The SCGS will guarantee a percentage of the value of loans used to purchase, refit, retrofit or repair vessels, sharing the risk with lenders to encourage offers of finance to UK vessel owners and operators.

Shipbuilding Tsar and Defence Secretary Ben Wallace said:

As I set out in the National Shipbuilding Strategy Refresh, this scheme will help build confidence in UK shipyards, allowing them to invest in the people and the technology to drive productivity forward in this vital sector of the UK economy.

Shipbuilding is hugely important to the UK, supporting 42,600 jobs nationwide and adding £2.4 billion to the economy every single year. A strong domestic sector helps to support the wider economy’s export ambitions, with 95 percent of UK trade moved by sea.

Maritime UK CEO Chris Shirling-Rooke MBE said:

We applaud the Government for delivering on the pledge it made to industry in the National Shipbuilding Strategy Refresh by launching the Shipbuilding Credit Guarantee Scheme.

The SCGS is a massive vote of confidence from government, and it will empower the UK’s shipbuilding enterprise to compete fairly on the global stage in doing what it does best: building Great British ships.

The shipbuilding industry is a growing part of the UK’s new green economy. Supporting the purchase, construction and repair of high-value vessels will encourage continued investment in innovative, sustainable, low-carbon maritime technologies.

Background:

• The Shipbuilding Credit Guarantee Scheme is one of a number of targeted measures being taken as part of the government’s National Shipbuilding Strategy Refresh to encourage ship owners and operators to place new orders and upgrade their existing fleets with the world-leading shipyards that are based up and down the UK.
• Supporting shipbuilding, with its presence from Belfast to Birkenhead, and from Plymouth to Clydebank, builds on the government’s commitments to grow the economy and level up.
• The wider maritime sector employs 113,000 people nationwide and contributes £11 billion to the economy.
• As well as supporting a vast supply chain and sustaining skilled jobs across the UK, the shipbuilding industry delivers world-leading capabilities for the Royal Navy, making a significant contribution to national security.

On 18 July 2023, the United Kingdom and the Republic of India concluded the eleventh round of talks for a UK-India Free Trade Agreement (FTA).

As with previous rounds, this was conducted in a hybrid fashion – a number of Indian officials travelled to London for negotiations and others attended virtually.

On 10-11 July, the Honourable Minister for Commerce and Industry, Government of India, Piyush Goyal, visited the UK as part of the eleventh round of the UK-India FTA negotiations. He met with Rt Hon Kemi Badenoch MP, the Secretary of State for Business and Trade, and Nigel Huddleston MP, the Minister of State for International Trade, where they discussed ways to make progress on the FTA negotiations and wider trade and investment opportunities for the UK and India.

Shri Sunil Barthwal, Commerce Secretary, Government of India also visited the UK during the round. He met with senior UK trade officials and took stock of the progress made in the eleventh round of negotiations.

Technical discussions were held across 9 policy areas over 42 separate sessions. They included detailed draft treaty text discussions in these policy areas.

The twelfth round of negotiations is due to take place in the coming months.