International Trade and Commonwealth

Free trade deal planned for UK and Australia

The UK and Australia have agreed ‘the vast majority’ of a free trade deal, which is expected to be confirmed this month.

After talks between UK International Trade Secretary Liz Truss and Australian Trade Minister Dan Tehan, a statement was released which said: "Both countries are confident the remaining issues will be resolved, and will now enter a sprint to agree the outstanding details with the aim of reaching agreement in principle.”

It is estimated a deal could add £500m to the UK’s gross domestic product (GDP). It is known that the UK wants to see tariffs slashed on whisky and cars, while the Australians want to see a reduction in taxes levied on meat exported to Britain.

Either way, the deal will be good for UK businesses, among them West Midlands-based Richardsons, who have interests in property and private equity investments around the world, including Australia.

Richardson family growth capital investments in the Pacific Rim region include an Australian-based sustainable aquaculture enterprise, a Singapore-based artisan bakery chain and the largest avocado grower in New Zealand. Carl Richardson, who jointly runs the family’s international business, said:

“We already have multiple business interests around the Pacific Rim and a deal which, among other advantages, reduces or eliminates tariffs will encourage further investment and make business simpler.

“We hope that the Australia deal progresses well because it will act as an incentive to push ahead with the UK’s application to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).”

The CPTPP is a free-trade agreement between 11 countries around the Pacific Rim: Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam and Japan.

Mr Richardson said there would be ‘enormous’ potential benefits of full membership for the UK.

Golden opportunity: The Richardsons (from left, Carl, Martyn and Lee)

Making connections with European Chambers

By Philip Parkin

The Chamber has been hosting a number of special link-ups with European Chambers of Commerce in a bid to reconnect UK business with the continent.

The link-ups will feature four major online events hosted by the Chamber and its European partners, with events focusing on Germany and Italy having already taken place.

The events are aimed at helping exporters find their feet again, after the punishing effects of the coronavirus pandemic and the loss of the UK’s membership of the European Union.

Both had been a factor in the drop in exports which had been reported by UK businesses at the start of the year, although more recent evidence is that trade with the EU is returning to normal.

However, in order to strengthen ties with Europe, the Chamber has joined forces with colleagues representing Germany, Italy, France and Ireland, in an online programme funded by the West Midlands Combined Authority.

The Italian event was the most recent, and examined the opportunities presented by the Mediterranean country.

Among speakers were Aaron Pugliesi, secretary general and CEO of the British Chamber of Commerce for Italy (BCCI), and Steven Sprague, chairman of the BCCI Brexit committee and BCCI councillor at Milan law firm Castaldi Partners.

Italy is in the South-Eastern part of the European Union, and is a great hub for UK companies, providing easy access to its neighbouring countries.

The country ranks alongside France, UK and Germany in terms of population, which makes it an important market for any business.

According to the BCCI, although Italy’s tax and legal framework is complex, it is quite stable and capable of securing business growth.

Italy’s economy is eighth out of 205 in terms of nominal gross domestic product (GDP), according to the World Bank.

The country’s strongest sectors are the automotive, pharmaceutical, food, fashion and tourism sectors, and BCCI says all products designed for these industries will find in Italy ‘a great outlet’.

Aaron Pugliesi said: “Trading with Italy offers the chance to combine important business opportunities and marvellous human experiences.”

Stef Bowes, international manager at Birmingham Chamber, said that the event was one of the first times that the organisation had engaged with its European partners since Brexit.

She said: “We were delighted to be reacquainted with a key European partner in the British Chamber of Commerce Italy.

“This event was an important opportunity to further develop understanding on the new ways of working together post Brexit.

“It examined in detail the current trading situation between the UK and Italy, and showcased some of latter’s most economically important sectors.

“The expert advice from the British Chamber of Commerce Italy highlighted the opportunities that UK businesses have available to them to grow across the many Italian regions.”

The events featuring France and Ireland are yet to be held.

Aaron Pugliesi: Italy offers important opportunities

Greater Birmingham Commonwealth

Chamber of Commerce Contact: Mandy Haque T: 0845 6036650

…and business with India will double

By Philip Parkin

Britain and India have paved the way for a fullblown trade deal after agreeing on an initial proposal worth £1bn.

The preliminary deal will see new co-operation and investment, focused on health and technology, which could create 6,500 jobs in the UK. Part of this will include The Serum Institute of India, the world’s largest vaccine manufacturer, opening a new UK base, which will include a research and development centre.

The agreement will also create new opportunities for British businesses in India, particularly in the food and drink, life sciences and services sectors.

It is hoped that Britain and India will double the value of their trading partnership – currently £23bn annually – by 2030.

Among those welcoming the deal is Professor John Bryson, from the Department of Strategy and International Business at the University of Birmingham’s Business School.

He said: “There are two things to draw from this development. First, the initial numbers related to this deal are comparatively modest over £1bn.

“Currently, trade between the UK and India is worth around £23bn a year. Second, the expectation is that this new partnership will double the value of UK-India trade and investment by 2030.

“This is important in the context of the West Midlands, the West Midlands Combined Authority and the Chambers of Commerce. Andy Street has commenced his second team as mayor of the WMCA by highlighting the importance of job creation as the West Midlands enters a post-pandemic era.

“It is absolutely critical that businesses across the West Midlands focus on business opportunities that will be facilitated by the new UK-India trade agreement.

“Between 2017 and 2018 UK exports to India increased by 19.3 per cent. The size of the Indian market makes it an appealing market for West Midlands firms.

“At the moment, one could argue that the UK is underperforming in terms of exports to India and there are important opportunities to explore the myriad of family connections that bind the West Midlands with India. The opportunity is extremely large and perhaps by 2030 trade and investment with India could be worth over £100bn.

“It is important that West Midlands firms draw upon the historic links that exist between this region and India to ensure that new and existing jobs in the region are underpinned by developing the economic ties that currently exist between the West Midlands and India."

Also welcoming the deal is Commonwealth Chamber president Joel Blake, who said: “The £1bn UK-India trade deal is a positive testament to the global social and commercial benefit for both countries that can be achieved by harnessing the power of diversity. With an estimated 6,500 new UK jobs to be created across key sectors such as life sciences, technology, food and low carbon, both countries have the tangible opportunity to ensure that the latent potential of innovation, commercial and social mobility that is offered through this trade deal can be filtered from the boardroom, right through to grassroots communities at scale."

Steve Page, PwC’s Midlands International Markets leader and executive board member of the West Midlands India Partnership, said: “I’m pleased to see the £1bn UK-India trade deals.

“It will be interesting to see further detail on specific investments and how barriers around immigration and tariffs are addressed by the enhanced trade partnership.

“Moving forward, I expect increased interest and discussions with Indian investors looking at the UK and West Midlands, particularly in the automotive and electric vehicle sectors, which play to the strengths of our region.

Professor John Bryson: India trade opportunity is ‘extremely large’

‘It is hoped that Britain and India will double the value of their trading partnership’

“I also see huge opportunities for the 1.5 million Indian diaspora in the UK, who are passionate about their UK and India ties, and have made valuable contributions to the British economy to play a big part in supporting this.

“The UK and India have been strategic partners for many years, this has been further reinforced over the last year with the establishment of the West Midlands India Partnership.”

The latter is a new initiative aimed at boosting trade and investment between the West Midlands and India, and its chairman, Jason Wouhra, also president of the Asian Business Chamber of Commerce, said that the deal was a vote of confidence for the Commonwealth.

He said: “This announcement shows just how important it is to trade with Commonwealth partners.

“India and the UK already have incredibly strong trade ties, and this £1bn trade and investment package will help bolster both economies and expose UK-made products and intellectual property around the world.”

Major milestone for G&P’s Hungary office

Quality management provider G&P - which has its UK headquarters at Fort Dunlop - is celebrating 15 years in Hungary.

Based in Mór, G&P’s Hungarian team is deployed in various manufacturing facilities around the country, primarily in the automotive supply chain.

G&P was founded in 1994 and now has 1,000 employees worldwide. The company operates in a number of sectors, including automotive and aerospace, and provides inspection, rectification and technical services.

Its Hungarian office – G&P Quality Management Kft - was opened in 2006, offering a full range of quality management services to manufacturers and their suppliers.

G&P CEO Dino Kyriacou said: “It is fantastic to celebrate 15 years in Hungary, helping manufacturers and their suppliers through our expertise in quality management provision.

“Over past year we have successfully navigated the challenges due to the pandemic and we can now look forward to the future, providing a full range of quality management services, together with specialist engineering skills, so that quality is a continued focus for all those in the manufacturing process.”