Adam Afriyie – 2015 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Adam Afriyie on 2015-11-02.

To ask the Secretary of State for Business, Innovation and Skills, what steps he has taken to boost exports to (a) Indonesia, (b) Vietnam, (c) Thailand, (d) Malaysia, (e) the Philippines and (f) other countries in South East Asia.

Anna Soubry

UK Trade and Investment (UKTI) has established a regional network to support UK trade and investment across South East Asia. This helps provide UK companies with access to the fast-growing markets of the region. The network is on target to assist nearly 10,000 businesses this year. UKTI has directly assisted in export deals with the region worth £2bn in the first six months of this financial year, putting us on track to deliver the UK’s best ever trade figures for the region. My right hon. Friend the Prime Minister urged the European Union to accelerate negotiations on the EU-ASEAN FTA, a deal that is worth an additional £3 billion a year to the UK economy.

Closer collaboration across the region, supported by continued investment from government, has enabled UKTI to operate ever more efficiently, working with more British businesses and securing a higher value of business wins. Six regional priority sectors have been identified- reflecting UK strengths as well as the scale of opportunities in the region – enabling a more strategic approach to trade delivery in Infrastructure, Education, Energy, Financial & Professional Services, Consumer Retail and Healthcare.

Significant investment is also being made in the development of additional trade service capacity, being delivered by industry partners in the region, principally through Chambers of Commerce. This represents the government’s growing focus on the region as a global growth engine, and is indicative of the continuing importance that this government places in seeking out global opportunities to boost the UK economy.

In July of this year my right hon. Friend the Prime Minister led a trade mission to Indonesia, Singapore, Vietnam and Malaysia. The mission was made up of 30 British businesses, and included the signing of trade deals worth over £750 million. Concurrently, my right hon. Friend the Secretary for State for Business, Innovation and Skills led the inaugural Northern Powerhouse delegation, comprising over 50 UK companies, to Singapore and Malaysia.

During his visit to Indonesia, my right hon. Friend the Prime Minister announced that the Government will make available up to £1 billion to finance infrastructure projects involving UK business, in Indonesia through its export guarantee scheme. The UK welcomes the recent commitments made by President Joko Widodo’s government on deregulation and improving the business and investment environment in Indonesia, as well as the talks between Indonesia and the EU on a Comprehensive Economic Partnership Agreement, which will benefit both Indonesia and the UK. Richard Graham MP, the Prime Minister’s Trade Envoy to Indonesia and the Asian Economic Community (AEC) has paid two visits this year to Indonesia, pushing forward trade priorities and promoting work on second-tier cities within Indonesia.

Two-way trade with Vietnam more than doubled between 2009 and 2014, reaching £2.81 billion, with the UK being amongst Vietnam’s largest trading partners within the EU. During my right hon. Friend the Prime Minister’s visit in July, the first by a serving British Prime Minister, Rolls Royce and Vietnam Airlines signed an agreement totalling £340 million, Prudential announced a £100 million investment and ZincOx agreed a £75 million investment for hazardous waste recycling.

In the past year, over 1000 UK businesses have been helped to trade with Thailand. Notable improvements to the business environment include: British beef and lamb now being allowed to be imported into the Thai market after a 20-year hiatus, which will bring business of some £9m over the next five years; the British Embassy Bangkok, with other embassies and Chambers, encouraged the Thai authorities not to proceed with new regulations which would have directly impacted foreign ownership of over 5000 companies, many British, as well as deter further UK investment opportunities; finally the Government has encouraged the Thai authorities, with strong support from the Thai Prime Minister, to sign up to the Construction Transparency Initiative, which should improve public procurement practice for major infrastructure projects.

Exports to Malaysia (the UK’s second largest export market in ASEAN) have risen by almost 25% between 2010 and 2014. Over the past four years, there have been more UK Ministerial and VIP visits to Malaysia promoting trade and investment than ever before, including two visits by my right hon. Friend the Prime Minister. Recent successes include a £4.2bn supply and maintenance deal between Rolls Royce and Air Asia. Posts have successfully worked to tackle market access barriers, for example, helping to open up engineering and legal services in Malaysia.

In the first half of this year UK exports to the Philippines grew by 44%, the third highest growth in exports to any country worldwide. Major deals include a £90m contract for the supply of electronic voting machines, a £70m deal for a British solar company and the appointment of Arup as the lead designer on the country’s second largest airport.

Lord Puttnam, UK Trade and Cultural Envoy to Burma, Cambodia, Laos and Vietnam has also made two visits to the region this year, strengthening important business and governmental links and working on campaigns ranging from infrastructure to education.