PRESS RELEASE : New Government drives forward trade talks to turbocharge economic growth [July 2024]

The press release issued by the Department for Business and Trade on 29 July 2024.

• Trade Secretary Jonathan Reynolds set to deliver trade negotiations with international partners, including the Gulf Cooperation Council and India
• Government will launch new trade strategy to help deliver its growth mission, with UK businesses and economic growth at the centre
• UK was the world’s 4th largest exporter in 2022, with British goods and services in high demand across the globe

Business and Trade Secretary Jonathan Reynolds has announced the Government’s intention to deliver trade talks, starting with the Gulf Cooperation Council, India, Israel, South Korea, Switzerland and Turkey.

The Government is putting economic growth at the heart of everything it does to improve the livelihoods of hardworking British people.

Restarting talks is the first step towards agreeing the high-quality trade deals the UK needs to give businesses access to international markets, boost jobs and deliver that growth.

With exports totalling £855 billion, the UK was the world’s 4th largest exporter in 2022. High-quality British goods and services are admired globally and the Government is committed to using every lever available to help British businesses sell around the world.

FTAs are not the only tool to drive economic growth through trade. The Government also plans to publish a trade strategy which aligns with our industrial strategy, enhances our economic security and supports our net zero ambitions.

Through this trade strategy, resetting our relationship with the EU, supporting more small businesses to export and tearing down unnecessary barriers to trade, jobs and communities will be supported in every part of the UK.

Business and Trade Secretary Jonathan Reynolds said:

Boosting trade abroad is essential to deliver a strong economy at home. That’s why I’ve wasted no time taking stock of progress and getting ready to press on with trade talks with our international partners.

From the Gulf to India, our trade programme is ambitious and plays to the UK’s strengths to give British businesses access to some of the most exciting economies in the world.

Our teams will be entering negotiating rooms as soon as possible, laser-focused on creating new opportunities for UK firms so they can support jobs across the country and deliver the growth we desperately need.

This announcement will kickstart the process of getting negotiators back into the room with counterparts as soon as possible, with the first round of trade talks under the new government expected to take place during the Autumn.

The UK’s trade programme aims to deliver deals that will benefit the UK economy and boost trade with some of the most dynamic economies in the world.

For example, a trade agreement with the Gulf Co-operation Council would be a substantial economic opportunity, with at least £19 billion total already invested in each other’s economies as of 2021. An agreement with the GCC could potentially boost this further, ensuring British companies can make the most of this booming market and British customers get even more choice.

India, with which the UK is negotiating a Free Trade Agreement and Bilateral Investment Treaty, is projected to be the world’s third largest economy by 2027. A trade deal would give UK businesses better access to its burgeoning market of middle-class consumers, projected to grow to over a quarter of a billion consumers by 2050.

It comes after the Foreign Secretary visited India this week to discuss economic and global security.

Chairman of Tata Sons Natarajan Chandrasekaran said:

I am delighted that the new government has moved so quickly to restart trade negotiations with India. As one of the largest international investors in the UK, the Tata Group supports any action that strengthens the British economy. And as two of the world’s greatest trading nations with deep historical ties, India and the UK should be close economic partners, to the benefit of the citizens and businesses of both countries.

CEO of KOC Holding AS Levent Çakıroğlu said:

I believe that the negotiations for a new FTA can foster greater competitiveness, offer business opportunities across various sectors, and will strengthen bilateral trade ties between our two countries.

In the upcoming negotiations, there is room for improvement for both economies in services and investment sectors, but I believe automotive and home appliances business will continue to form the backbone of the trade between Türkiye and the UK in the future.

CEO of Roche Thomas Schinecker said:

Roche welcomes the UK government’s decision to resume talks about a free trade agreement between the United Kingdom and Switzerland. Free trade is essential for economic growth and stability.

Head of Trade Policy at the British Chambers of Commerce William Bain said:

Businesses are eager to open the doors to closer trade links with our key partners and will welcome the government’s renewed commitment to seek free trade agreements.

Reaching new or upgraded deals could offer new opportunities for businesses, of all sizes, to grow and invest for the future, especially in sectors like spirits, business services, climate friendly technology and pharmaceuticals.

Director General of the Chartered Institute of Export & International Trade Marco Forgione said:

The news that the Government has kicked off trade talks with these key economies so quickly is extremely positive. Making international trade easier and helping more UK businesses expand into international markets is central to getting growth into the economy.

We know there’s real business interest in making international trade easier and we stand ready to work with the Department to ensure businesses, particularly SMEs, are armed with the know-how to turn these opportunities into reality.

The Government is also committed to the CPTPP trading group, using our membership in the UK and her allies’ interests and ensuring businesses can take advantage of the deal when it enters into force.

Background

• Source for UK exports statistics: ONS UK trade, May 2024. Figures relate to the 12 months to May 2024.
• Source for world exports rankings: UNCTAD Goods and Services (BPM6) – Exports and imports of goods and services. Rankings relate to 2022.
• Source for UK-GCC FDI: ONS Foreign direct investment involving UK companies: 2021
• Source for growth in India’s economy: IMF World Economic Outlook, April 2024
• Source for middle class consumers: Global Trade Outlook – Department for Business & Trade, February 2023. Note: Middle class consumers are defined as having an annual income of at least $13,205 and are calculated by applying current income distributions to extrapolations of nominal GDP per capita, prices, and population.