After a week of speeches at the annual Labour Party conference in Liverpool, business and trade secretary Jonathan Reynolds capped it off with an insight into the government’s approach to trade, sending a letter to the head of UK Export Finance (UKEF) yesterday (26 September).
There’s also good news for UK growth, bad news for EU steel manufacturers and the launch of a new Imports Advisory Service by the Chartered Institute of Export & International Trade.
The big picture: Business and trade secretary Jonathan Reynolds has delivered a letter to the head of UK Export Finance (UKEF), Tim Reid, setting out the government’s priorities for the Department for Business and Trade (DBT) over the next year.
‘Small Business, Big World’, First among those priorities is the growth of the UK economy, which Reynolds says “will require a step-change in private sector investment”. On UKEF’s role in growing the economy, he adds that “it is critical that UKEF’s offer is competitive with our international peers across the G7."
“I would like you to review UKEF’s offer – including exploring with HMT [Her Majesty’s Treasury] increasing UKEF’s financial capacity and benchmarking the range of products it offers – to ensure that UKEF is well-placed to retain its position as a world-leading Export Credit Agency.”
On the government’s upcoming industrial strategy, Reynolds says it will be “international by design”, and that he would like to see UKEF use the £10bn in finance set aside for export to low- and middle-income countries by 2029 to help open new markets for British business and boost UK exports.
On SMEs, Reynolds writes that he would like UKEF to “digitise its offer where it can, to ensure that businesses of all sizes can access its support easily”, while also boosting “support for companies with a turnover below £10m to start exporting and do more to support small businesses to access finance on the private market”.
“By supporting these smaller exporters, UKEF can significantly increase the number of exporters it supports each year, spreading economic growth, prosperity and opportunity across the UK.”
Good week/Bad week: It was a good week for the UK economy, which the OECD projects to grow faster than G7 peers Germany, Japan and Italy over the coming year. The organisation revised its previous prediction for UK growth yesterday, from 0.4% to 1.1%.
A tougher week for European steel manufacturers, who have asked EU leaders to address a flood of “subsidised, below-cost Chinese steel exports” entering the market. According to the FT, Europe’s manufacturers have argued that Chinese steel is undercutting more sustainably-sourced but also expensive-to-produce domestic products.
How’s stat? Eighth – that’s the UK’s ranking in the list of global markets for the sale of non-alcoholic beer, according to new data from IWSR. The UK’s non-alcoholic beer market expanded more than any other globally last year, beating its nearest competitor, Venezuela.
The week in customs: We reported this week on how importing firms are seeking ‘trusted trader’ status in order to mitigate delays and bring customs checks in-house. Foreign affairs committee chair Emily Thornberry took the opportunity to say that traders should not avoid trading with the EU, despite barriers raised since the UK’s exit from the bloc:
“We need to make sure that we get closer to our friends, and we have a proper trading relationship and cultural relationship with them.”
Elsewhere, the Guardian reported that the EU’s plant exporters were nevertheless avoiding the UK over what the Horticultural Trades Association (HTA) called “painful” new sanitary and phytosanitary (SPS) checks recently instituted under the Border Target Operating Model (BTOM).
In the regions: The Chartered Institute's north-west members and partners also gathered in Manchester to hold a productive roundtable discussion about sustainability, SME support, supply chain trends and the digitalisation of trade.
Quote of the week: “Under my plan, American workers will no longer be worried about losing your jobs to foreign nations. Instead, foreign nations will be worried about losing their jobs to America.”
Donald Trump on his tariff plans should he win the upcoming US presidential election, according to the BBC.
What else we covered this week: This week’s free public webinar from the Chartered Institute explored the need for education and information for firms importing to the UK, with over a third of delegates stating in a poll that ‘education for business’ should be a priority for the government.
It came as the Chartered Institute launched its new Imports Advisory Practice to support traders with the complexity of importing, alongside a fresh report on the 10 recent changes affecting importers this year and what they should look out for in 2025.
Chancellor Rachel Reeves spoke at this week’s Labour Party annual conference in Liverpool to say “globalisation as we once knew it is dead”, emphasising the importance of “mak[ing] and sell[ing] here in Britain” in light of recent supply chain shocks.
True facts: Yesterday was Maritime Day, when seafarers and their contribution to industry and trade is internationally recognised. A total of 10.65bn tonnes of goods were shipped over the oceans in 2021, according to Statista.
