BCC TRADE UPDATE

ASIA-PACIFIC TRADE BLOC DEAL A BOOST FOR BUSINESS

Trans pacific Partnership Trade Agreement to join 11 states in the group

Reacting to news of an agreement on the UK’s accession to the CPTPP, William Bain, Head of Trade Policy at the BCC, has said:

“The addition of the UK to this trading bloc takes it to 12 countries which account for 15% of global economic output. It will open up new opportunities for our businesses in both inward and external investment with the other 11 countries.

“The UK has bilateral trading terms negotiated with nine of the eleven current members, but no agreements had previously been reached with Malaysia and Brunei, so they will be of particular interest.

“There are not many multi-national trade agreements like this one, so it is an interesting new prospect. We see particular relevance for small and medium sized businesses in reduced costs to import components from member countries to use in manufactured goods for export through the rules of origin in the agreement.

“There are also generous terms for data flows which underpin an increasing part of international trade. We will be scrutinising the deal in detail, but at first glance this looks to be good news for UK businesses to enter or upscale their trade in these markets, with increased confidence and more generous trading terms.

“We look forward to working with the UK Government and others to ensure firms get the best possible access to these markets.

In Brief

Key measures to implement the Windsor Framework were adopted by the UK government and European Commission a few days ago in London. BCC comments are:

• Key Measures - The joint EU and UK decision to give formal effect to the Windsor Agreement is another important step in improving trading conditions between Great Britain and Northern Ireland.

“For the BCC, the priority is now making sure the new customs and paperwork arrangements, plus the trusted trader schemes, work smoothly for businesses either side of the Irish Sea.

“We look forward to close engagement with HMRC over the coming months to make sure the on-the-ground reality of this deal produces tangible benefits for firms.”

• The Trade (Australia and New Zealand) Act received Royal Assent, putting entry into force of the UK’s trade deals with Australia and New Zealand on course for late spring.

• HM Treasury has launched a consultation until the end of June on measures to address carbon leakage on imports of goods – these will affect traders and are a response to similar measures being implemented from October in the EU.

• The BCC is also engaging with the Cabinet Office over forthcoming announcements on the GB border, including processes for importing goods. The publication of the Target Operating Model is expected very soon which could introduce changes as early as next year.