The Business & Trade Committee have today, 13th February, released their report titled “Priorities of the Business & Trade Committee”. This report combines evidence from six regional roundtable events that took place across Great Britain, a conference held in Westminster and, and online survey. Overall, it takes into consideration the views of hundred of UK businesses, trade unions and consumer groups and focusses on what UK businesses want and need from the UK Government to drive growth.
The Picture on Trade:
Specifically on trade, the report states the “businesses told us they need friction-free trade to sell to the world”.
When discussing the support offered by the Department for Business & Trade, businesses explained how “more information is needed” and that “while support is effective once exporting, it is difficult to get started”.
With regards to the EU, the report outlines these specific ambitions and comments:
A Sanitary and Phytosanitary (SPS) agreement to remove the technical barriers thereby reducing the administrative burden and costs.
A simplification of customs arrangements which “disproportionately affects SMEs”.
Using accredited and trusted trader schemes to reduce barriers to trade.
Disappointment at the decision to pause the rollout of the Single Trade Window. It is hoped that the STW would allow traders to simply input data once as this one entry point could be accessed by all necessary bodies and Government organisations thereby reducing duplication.
Frustration at the lack of progress on mutual recognition of professional qualifications with the EU.
Caution on CBAM:
While it was noted in the report that businesses could “see the opportunities arising from the green transition”, the report does state that Government “must take acute care to ensure that the new Carbon Border Adjustment Mechanism does not become a new barrier to trade”.
In particular, the report highlights several concerns including that it may result in the importing of more finished steel products rather than raw materials, and that create higher prices for clean energy products.
Free Trade Agreements:
Overall, the picture painted by the report is one that UK businesses generally wish to see more information and promotion of the current FTAs and particular interest in ongoing negotiations with India and the GCC.
However, for some sectors and industries in particular, they wanted to see more work on trade diplomacy. This issue was raised mainly by digital and financial sectors and traditionally FTAs can be less fruitful for services than goods which does not support the idea that “digital trade is seen to be a very significant field for growth”.
Better Data Means Better Results:
When it comes to trading internationally, the report states that “trade data is important in helping businesses target sales and marketing efforts”. In particular, UK businesses need support with:
Keeping on top of global market trends, technological developments and regulatory changes
Understanding international markets to better meet international standards and consumer preferences
Understanding how to attract foreign investment and enhance their export capabilities.
Making the Procurement Process More Accessible:
As per the report, “government procurement should become a much more important market for UK business”. In particular, more support needs to be offered to help smaller businesses access Government contracts. This support includes:
Making the process to access the contracts, and the eligibility for interested parties, friendlier for SMEs
Reduce the focus on price and put a greater consideration on quality and delivery
Making the systems involved in the process more user-friendly. For example, they could remember key information from previous bids.
Conclusion:
While the report does a good job in bringing together the opinions of businesses and industries, it is now up to the Department for Business & Trade to take action on the points raised within the report.
The Chair of the Business & Trade Committee, Rt Hon Liam Byrne MP, had this to say:
“Business needs workers, skilled or re-skilled in the digital and green revolutions that will transform our economy domestically....Britain is one of the best places in the world to do business. Our entrepreneurs have been making history by inventing the future since the first industrial Revolution. Government must not be afraid to listen to business and make sure we get this one right. Our best days might truly lie ahead”.
The full report can be read here.
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