Tag: Department for International Trade

The press release issued by the Department for International Trade on 2 November 2023.

The UK is seeking views from businesses and the wider public on UK negotiation objectives for a new trade agreement with Turkey.

• Government invites business to shape UK objectives for fresh trade talks with Turkey
• New, modernised trade deal could boost trade with top-20 trading partner and support wide range of sectors including services, tech and digital
• Trade Minister Nigel Huddleston marks launch with visit to Vodafone, one of the UK’s largest investors in Turkey

The UK has today [2 November] launched a ‘Call for Input’ seeking views from businesses and the wider public on UK negotiation objectives for a new, modernised free trade agreement (FTA) with Turkey.

The UK and Turkey are two major trading economies at either end of the European continent. Trade between the two countries reached £26 billion in the 12 months to June 2023, making Turkey a top 20 trading partner for the UK. In 2022, over 8,000 UK VAT-registered businesses exported goods to Turkey, including well-known brands like Vodafone

The UK and Turkey have an existing FTA which is based on outdated provisions from the 1990s negotiated when the UK was a member of the EU, and only covers goods. We are committed to negotiating a new, modernised FTA that is fit for the 21st century and covers sectors such as services, tech and digital.

The Call for Input will give businesses, organisations, and individuals the opportunity to shape the UK’s negotiating aims ahead of talks and ensure the updated trade deal is tailored to the strengths and priorities of British businesses.

International Trade Minister Nigel Huddleston will launch the Call for Input on a visit to Vodafone’s Newbury headquarters. Vodafone is one of the UK’s largest investors in Turkey.

International Trade Minister Nigel Huddleston said:

Trade deals are all about creating opportunities for businesses, growing the economy and supporting jobs – that’s why it’s so important businesses tell us what they want from them.

Turkey is a great strategic partner and we already have a thriving trading relationship – up more than 17% in current prices in the last year alone. I’m incredibly excited to start upgrading our FTA, opening up opportunities for growth and giving British businesses better access to a market of some 85 million people.

Turkey’s thriving tech, manufacturing, transport, and infrastructure sectors have generated a surge in demand for international expertise in recent years, presenting significant opportunities for UK companies. UK services exports to Turkey all already on the up, increasing by 54% to £2.1 billion in 2022, with key sectors including transport, financial services, architecture and audit.

A new FTA with modern provisions for services and digital trade could turbocharge this, creating opportunities for UK businesses and giving them a competitive edge on companies from other countries.

Serpil Timuray, Vodafone CEO of Europe Cluster and UK Country Representative for Turkey’s DEİK (Foreign Economic Relations Board) DTİK (World Turkish Business Council) said:

Vodafone is a leading investor in Turkey that has taken a long-term outlook and contributed significantly to the country’s digitalisation and economic progress during the last 15 years. A new trade deal will drive greater opportunities for Vodafone and other companies who have invested in Turkey, helping to foster closer UK-Turkey relationships.

The call for input will run from 10am on 2 November 2023 to 10am on 5 January 2024 and will be available on gov.uk.

Background

• Turkey is a major supplier of goods to the UK, which is its 4th largest goods export market, in return for £6.4 billion of UK goods exports.
• The Call for Input follows a joint review of our existing FTA, which covers goods trade only, is based on outdated provisions from the 1990s and is not tailored to the UK’s strengths as a services superpower.
• The joint review concluded there would be value in expanding its scope under a new agreement to expand trade ties and benefit both economies.
• UK and Turkey Joint Statement can be found on gov.uk: https://www.gov.uk/government/news/uk-tu3rkey-joint-statement-july-2023

The press release issued by the Department for International Trade on 11 September 2023.

• Kemi Badenoch signs UK-Italy export and investment partnership on visit to Rome – the first such partnership between the UK and any EU country.
• Partnership will strengthen our post-Brexit export and investment links with Italy and intends to boost a trade relationship worth more than £43 billion.
• Business and Trade Secretary will also co-chair the first UK and Italy CEO Forum, bringing together businesspeople from the two countries to bang the drum for the UK as a top investment destination.

The UK and Italy have today (Wednesday 8 February) agreed a momentous trade partnership to boost UK exports, help create jobs, increase wages and grow the economy.

On her first overseas visit as the Business and Trade Secretary, Kemi Badenoch MP and Italy’s Minister for Foreign Affairs and International Cooperation and Deputy Prime Minister Antonio Tajani met in Rome today to sign the UK-Italy Export and Investment Promotion Dialogue – the first agreed between the UK and any EU country.

The partnership aims to strengthen exports in high-performing and growth sectors of the future, such as Life Sciences and Digital and Tech, as well as promoting inward investment, including low-carbon industries such as Offshore Wind and Carbon Capture Storage.

The agreement reinforces the UK’s position as a vital trade partner within Europe and the G7. It demonstrates how we can use our position as an independent trading nation to agree comprehensive trade deals with new markets, while also strengthening partnerships with EU members.

Business and Trade Secretary Kemi Badenoch MP said:

“This partnership marks a significant milestone in the UK’s trading relationship with Europe and shows how an independent UK can benefit from striking ambitious trade deals with the world, while also reinforcing our already strong and prosperous trading relationship with EU members such as Italy.

“This partnership will boost trade and investment between British and Italian businesses, ease the path for valuable investment, and will crucially grow UK exports as we aim for our target of selling £1 trillion of goods and services a year to the world by the end of the decade.”

Both the UK and Italy are in the top 10 global economies. Trade between the UK and Italy is worth more than £43 billion, making it the UK’s 11th largest trading partner.

The most popular UK exports to Italy include cars, worth £932.5 million and equivalent to 10.1% of all UK goods exported to Italy, and £507.7 million worth of mechanical power generators.

In 2020-21, Italy was also the 6th largest source of UK Foreign Direct Investment (FDI) projects globally.

During her visit, the Business and Trade Secretary will co-chair the first UK and Italy CEO Forum, alongside the Minister for Enterprises and Made in Italy Adolfo Urso. The meeting is the first of its kind and she will discuss her top trade priorities which include breaking down trade barriers, making the UK the undisputed top investment destination in Europe and attracting new investment helping to level-up the country.

She will also meet with the heads of major Italian investors in the UK including innovative wind turbine business ACT Blade, and Eni, world leading energy company.

Badenoch will also make the opening remarks at the 30th anniversary of the Pontignano Forum where she will discuss the importance of economic security and trade in turbulent times.

The press release issued by the Department for International Trade on 1 April 2023.

Millions of the lowest paid workers across the UK will receive a pay increase as the National Minimum Wage and National Living Wage rise comes into effect.

• The National Living Wage will see an increase of 9.7%, up to £10.42 for workers aged 23+, as well as an increase for younger workers on the National Minimum Wage
• The uplift – worth £1,600 more for a full time worker – will benefit workers in industries like retail, hospitality and cleaning and maintenance, as well as women from ethnic minority backgrounds
• This adds to other government support coming into effect today, including the Energy Price Guarantee, Household Support Fund and bus fare extension

Millions of the lowest paid workers across the UK will from today [Saturday 1 April] receive a pay increase as the National Minimum Wage and National Living Wage rise comes into effect.

The increase will put more money in the pockets of 2.9 million of the lowest-paid workers across the country.

The rate rises include a 9.7% increase in the National Living Wage, from £9.50 per hour to £10.42, the equivalent of more than £1,600 extra per year before tax for someone working full time.

This increase is the largest ever cash increase to the National Living Wage, and highest increase in percentage terms since its introduction in 2016, helping to protect the incomes of millions of workers from high cost-of-living.

Business and Trade Minister Kevin Hollinrake said:

“This government is doing everything it can to support hardworking people with the cost of living – from paying energy bills to helping with childcare.

“Today we are now increasing the National Living Wage to record levels, boosting the incomes of almost 3 million people.

“This pay rise will help families across the country, as we focus on our five priorities, including growing the economy and halving inflation.”

The full increases from 1 April 2023 are:

• National Living Wage (23+) has increased 9.7%, from £9.50 to £10.42
• National Minimum wage (21-22) has increased 10.9%, from £9.18 to £10.18
• National Minimum Wage (18-20) has increased 9.7%, from £6.83 to £7.49
• National Minimum Wage (under 18) has increased 9.7%, from £4.81 to £5.28
• Apprentice Rate has increased 9.7% from £4.81 to £5.28
• The Accommodation Offset also increased 4.6% from £8.70 to £9.10

The 9.7% increase to the National Living Wage today keeps the Government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.

Further government action also comes into effect today to support households with the cost of living, including extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. We have also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.

The Department for Work and Pensions have also announced £842 million to help the most vulnerable households across England. The extension of the Household Support Fund, which comes into effect today, gives councils additional cash to directly help the most in need with essential food and energy costs until the end of March 2024.

The Department for Transport have also announced a £2 fare cap for bus users which is being extended until the end of June. This cap will help save passengers money, encourage more people back on the bus and grow the economy.

The National Living Wage and National Minimum Wage have increased every year since their introduction – and this year, there is no exception. The Government is committed to providing both workers and businesses with certainty as we deal with cost-of-living challenges.

The 2023 National Minimum Wage for 21 and 22 years is 52% higher and the National Minimum Wage for apprentices is 60% higher than the 2015 rates.

The uplift will particularly benefit workers in sectors such as retail, hospitality and cleaning and maintenance, as well as women from ethnic minority backgrounds.

The press release issued by the Department for International Trade on 22 March 2023.

A trade update on the UK-Gulf Cooperation Council Free Trade Agreement.

The press release issued by the Department for International Trade on 20 March 2023.

The UK today signed a pivotal digital trade deal with Ukraine that will support the country’s economy and greatly enhance our trade and investment relationship.

Business and Trade Secretary Kemi Badenoch and Ukrainian First Minister sign UK-Ukraine Digital Trade Agreement to provide vital support for Ukrainian economy

Department for Business and Trade mobilises UK businesses to engage in future reconstruction projects in Ukraine with major conference

UK pledges to extend the removal of tariffs on all Ukrainian products until March 2024

The UK today [Monday 20 March] signed a pivotal digital trade deal with Ukraine that will support the country’s economy and greatly enhance the UK-Ukraine trade and investment relationship.

The Department for Business and Trade today hosted a number of Ukrainian ministers, as well as 200 UK and international businesses and officials, at Mansion House to lay the foundation for closer future co-operation.

The Road to Ukraine Recovery Conference, geared towards supporting Ukraine’s National Recovery Plan and mobilising UK businesses to engage in future Ukraine reconstruction projects, opened with a welcome from the Business and Trade Secretary. This event, and our mobilisation of UK industry, is a key stepping stone on our route to the Ukraine Recovery Conference that will be hosted in London in June.

Badenoch, alongside Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, virtually signed a ground-breaking new Digital Trade Agreement (DTA) that will help Ukraine support its economy through the current crisis and lay foundations for its recovery and revival.

Business and Trade Secretary Kemi Badenoch MP said:

The historic digital trade deal signed today paves the way for a new era of modern trade between our two countries.

We are also extending tariff free trade on imports from Ukraine to early 2024, providing much needed support to Ukrainian businesses.

These initiatives will help protect jobs, livelihoods and families now and in Ukraine’s post-war future.

Since June 2022, UK negotiators worked at record pace with their Ukrainian counterparts to deliver a deal after President Zelenskyy highlighted the important role Ukraine’s first ever digitally focused trade agreement could play in bolstering his country’s economy.

Ukraine will have guaranteed access to the financial services crucial for reconstruction efforts through the deal’s facilitation of cross-border data flows. Ukrainian businesses will also be able to trade more efficiently and cheaply with the UK through electronic transactions, e-signatures, and e-contracts.

First Deputy Prime Minister and Minister of Economy for Ukraine, Yuliia Svyrydenko said:

This digital trade agreement illustrates that Ukrainian IT companies operating in Ukraine are in demand around the world despite all the challenges of war.

The UA-UK Digital Trade Agreement has enshrined core freedoms for trade in digital goods and services. Ukraine believes that an open and free framework for the digital economy is the best investment in future oriented development.

The UK’s total military, humanitarian and economic support pledged since 24 February 2022 now amounts to over £4 billion. The UK is a key partner for Ukraine in its reconstruction efforts. We hosted the UK-Ukraine Infrastructure Summit in June 2022, signed a Memorandum of Understanding (MoU) agreeing to play a leading role in the reconstruction of Kyiv Oblast and set up the Infrastructure Taskforce to implement this agreement.

Stuart Senior, Member of the Supervisory Board, Gleeds said:

As international construction consultants, Gleeds has had a presence in Ukraine for many years. We welcome this new agreement which strengthens UK-Ukraine relationships and helps Ukraine’s increasing development as a modern, open economy.

The DTA will remove barriers to digital trade and enable partnership initiatives and collaborative working to be delivered more effectively. It will also further enhance the acceleration of economic recovery through the faster delivery of critical infrastructure reconstruction projects by implementing better processes and standards.

In the margins of the Road to URC event, the UK confirmed its intention to extend the removal of tariffs on Ukrainian products until March 2024. This follows the UK’s world-leading decision in May 2022 to cut tariffs on all goods from Ukraine to zero and will provide much needed support to Ukrainian businesses given the impact of the war on Ukraine’s ability to export goods.

The UK also continues to support Ukraine through decisive sanctions against Russia. The UK and its allies have introduced the most severe economic sanctions ever imposed on a major economy, including on £20 billion (96%) of UK-Russia goods trade from 2021.

Sanctions are having deep and damaging consequences for Putin’s ability to wage war. Since the start of the invasion, UK goods imports from Russia have fallen by 99% and goods exports to Russia have fallen by 80%.

The press release issued by the Department for International Trade on 27 February 2023.

The UK and Welsh governments will host a delegation of eleven economic development leaders from across Indiana from 26 February to 2 March.

Under the framework of the UK-Indiana Memorandum of Understanding (MOU) on economic cooperation and trade relations, the UK and Welsh governments will host a delegation of eleven economic development leaders from across Indiana from 26 February to 2 March. The programme will focus on the themes of clean energy, women’s economic empowerment, and levelling-up. During their first stop in London, the delegation will meet with key Government officials to discuss UK policies covering the three themes of the visit and participate in a panel discussion on the clean energy sector in Indiana at the Department for Business and Trade’s North America Roadshow. The delegation will then travel to Wales over St. David’s Day and meet with Welsh Government officials and external stakeholders in Cardiff, Swansea and Port Talbot.

Signed in May 2022 at the Indiana Global Economic Summit, the UK-Indiana MOU was the UK’s first state-level trade and economic development agreement. The MOU builds on well-established cooperation and trade relations, with the aim of strengthening economic development across all regions of the UK and Indiana, with a focus on clean energy and sustainability, prioritising building economies of the future. Through the formalised agreement, both governments aim to enhance cooperation in priority sectors, grow businesses and create jobs.

The press release issued by the Department for International Trade on 14 February 2023.

The Prime Minister Rishi Sunak and Business and Trade Secretary Kemi Badenoch have welcomed a momentous deal for Airbus and Rolls-Royce to provide new aircraft for Air India, which is worth billions of pounds to the UK. The agreement announced by the companies this morning (Tuesday 14 February) will support and create new highly skilled jobs in Wales and Derbyshire, helping to boost exports, grow the economy and level up the UK.

A significant portion of the manufacturing process for the new aircraft is expected to take place in the UK. The wings will be designed in Filton, and assembled in Broughton – which is expected to bring an additional 450 manufacturing jobs and more than £100m of investment to Wales. The large A350 aircraft are exclusively powered by Rolls-Royce XWB engines, which are assembled and tested in Derby.

In 2021, the UK’s world-class aerospace sector added £10.6bn in value to the UK economy, exported c.70% of its domestic output and directly employed 111,000 high-skilled people, 89% of which are outside London and the Southeast. It is also a leading sector for high value apprenticeships, with 5,500 currently employed in sector.

India is a major economic power, projected to be the world’s third largest economy with a quarter of a billion middle class consumers by 2050. We are currently negotiating a free trade agreement that would boost our £34 billion trading relationship.

Prime Minister Rishi Sunak said:

“This landmark deal between Air India, Airbus and Rolls-Royce demonstrates that the sky’s the limit for the UK’s thriving aerospace sector.

“It will create better-paid jobs and new opportunities in manufacturing hubs from Derby to Wales, so we can grow the economy and support our agenda to level up – helping to deliver on my five priorities for the country.

“The UK is already a top investment destination, and by building trade ties with growing economic powers like India we will ensure UK businesses remain at the forefront of global growth and innovation.”

Business and Trade Secretary Kemi Badenoch MP said:

“This is a significant win for the UK’s world-leading aerospace sector and one which will help to secure thousands of highly skilled jobs across the country and drive economic growth. It’s a shot in the arm for UK exports as we aim to sell £1 trillion of goods and services a year to the world by the end of the decade.

“We’re currently negotiating a trade deal with India which could boost trade by up to £28 billion a year by 2035. Export wins like this are another big step to our nations forming a closer trading relationship.”

The press release issued by the Department for International Trade on 14 February 2023.

British confectionery companies are celebrating a potential export boost in time for Valentine’s Day 2024.

The press release issued by the Department for International Trade on 10 February 2023.

The Prime Minister announces the UK’s second Global Investment Summit in October 2023 during a meeting of the Investment Council.

The press release issued by the Department for International Trade on 10 February 2023.

New figures coincide with Business and Trade Secretary’s visit to Mexico, where she is progressing a modernised UK-Mexico deal and promoting the UK’s accession to CPTPP.

• New ONS statistics show UK services exports reach record highs of almost £400 billion in 2022
• The figures coincide with Business and Trade Secretary’s visit to Mexico, where she is progressing a modern, new UK-Mexico deal to boost UK services exports further, and promoting the UK’s accession to CPTPP
• Badenoch: “This cements the UK’s position as a global services superpower”

Business and Trade Secretary Kemi Badenoch has welcomed new figures showing UK services exports reached record highs, adding that they ‘cement the UK’s position as a global services superpower’.

The trade data released by the Office for National Statistics today (Friday 10th February) shows that UK services exports reached record highs in 2022, totalling £397 billion.

In current prices, it means an increase of 20% compared to 2021, and up 23% on exports in 2018.

The UK is the second biggest services exporter in the world – behind only the US, and the services sector contributes around 80% of the UK’s GDP. Today’s results show the UK is contributing to a growing global sector, with service sectors across the world expected to account for 28% of global trade by 2030 – up from 25% in 2019.

The Business and Trade Secretary welcomed the news on day two of her visit to Mexico, where she is using high level talks with Mexican cabinet counterparts to secure benefits for thousands of UK firms by locking in expansive services provisions as part of a new, modern UK-Mexico trade deal.

Alongside an upgraded bilateral deal, the Business and Trade Secretary is in Mexico to promote the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Mexico is a member.

Joining CPTPP will secure enhanced market access, predictability, and transparency for UK service suppliers who exported £30bn worth of services to CPTPP countries in 2021. Modern trade agreements like CPTPP, that set ambitious rules for trade in services between members, are vital for UK companies looking to maximise opportunities to grow their businesses across both sides of the Pacific.

Business and Trade Secretary Kemi Badenoch said:

These new figures are a trade success story and cement the UK’s position as a global services superpower.

Services are the lifeblood of our economy, employing over 8 in 10 of our workforce. To see services trade reaching these heights is a firm reminder of the resilience of our strong services economy and shows significant progress in our race to export over a trillion pounds of British goods and services a year by 2030.

I’ll be using my talks with Mexican politicians and UK businesses operating in Mexico to make the case for a revamped UK-Mexico trade deal which will significantly increase export opportunities, and boost jobs around the UK.

Latest figures show the UK exports over £1bn worth of services to Mexico, a 30% increase in current prices on the previous year. A more modern, forward looking ‘Mexico 2.0’ deal could boost this even further, unlocking export opportunities for SMEs and the UK’s digital and services industries.

UK businesses who would benefit from modernised services rules between both countries range from British bank HSBC, currently the fifth largest bank in Mexico, to Pearson Education, whose products and services include world-renowned academic qualifications, digital content, assessments and data.