This is always a busy period for UK trade, with the Department for Business and Trade’s (DBT) International Trade Week programme taking place this week, at the same time as Going Global Live in London, and with the Chartered Institute of Export & International Trade’s upcoming Import Export Show happening on 3 December.
Ahead of the latter event, our executive editor, Will Barns-Graham (WBG), spoke to DBT’s deputy director for free trade agreement (FTA) utilisation, Richard Given (RG), about why he’s excited to speak at this year’s conference.
We also talk to Given about the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will come into force next month. We’re going to be covering CPTPP in a free webinar on Wednesday (13 November), as part of International Trade Week.
WBG: You will be speaking at the Import Export Show about how businesses can make the most of the UK’s new free trade agreements. What are the main challenges businesses are facing with FTA utilisation?
RG: We find that it varies across different types of businesses, depending on their size and on their experience as exporters.
On goods trade, we know that SMEs can struggle to access preferential rates and that often this is because of the need to navigate complex rules of origin requirements. The related administrative and compliance costs that come as part of this process also may not be offset by tariff savings.
Regarding services providers, there is often a low awareness of the FTA provisions that are relevant to them – such as enhanced market access, securing existing access and certainty, and business mobility arrangements – and a lack of capacity to navigate the relevant regulations.
WBG: How is DBT currently supporting businesses to use FTAs and is it planning any new activities in this regard going into 2025?
RG: We have a lot going on!
Our primary focus is ensuring UK exporters are equipped with the tools and knowledge they need to consider FTAs as part of their decision-making kit when developing market entry strategies or thinking about expanding in current markets. We do this by working closely with our colleagues in DBT, across Whitehall and in the devolved governments, to ensure that the provisions of the FTAs are understood, and utilised, by businesses right across the country. An important part of our work is developing guidance for an SME audience on new FTAs.
The focus for the start of 2025 will be going out and talking to businesses about CPTPP, as the agreement will have entered into force in the UK by the end of this year. We have a huge – but exciting – challenge on our hands, looking at how provisions will support UK firms across multiple sectors in all 11 other markets, including how CPTPP interacts with the existing bilateral FTAs the UK has with these economies.
We will also be working across DBT to continue the implementation of the Australia and New Zealand FTAs, ensuring what businesses are experiencing on the ground feeds directly into the government-to-government committees set up as part of the FTAs.
Finally, we also keep up to date with negotiations that are still underway, thinking ahead to which agreement might come next, and how we as a team might approach it.
WBG: Which FTA benefits have businesses most utilised? Do you have any examples of businesses who’ve grown their sales in particular markets as a result of any of the UK’s FTAs?
RG: That is an interesting question. Though my team is called FTA Utilisation the concept of ‘using’ an FTA is most applicable to goods trade and the use of preferential tariffs and quotas. On other provisions, it is more helpful to think about the leveraging of the provisions for competitive advantage.
For goods, our early analysis tells us that preference utilisation is high for exports under the UK-Australia FTA. We continue to keep an eye on this, and to collect success stories of businesses trading with these markets, using the FTAs, in order to inspire similar businesses to do the same.
One interesting example is Dr Paw Paw, a family-owned skincare business who entered the Australian market in late 2023, securing a deal worth almost £1m over five years, acknowledging that the 5% tariff saving enhanced their competitiveness in that market.
On services, we know that mobility provisions are very important, and digital trade provisions are becoming increasingly important. Grimshaw Architects, a global architecture company, have told us how our FTAs with Australia and New Zealand have helped build their presence in Australasia. Informed Solutions, a provider of large-scale digital transformation solutions, have also told us how the UK-Australia FTA has supported their growth in the UK and Australia and that the digital provisions in CPTPP will further their growth into Malaysia.
WBG: You are the deputy director of FTA utilisation at DBT. What led to this role being created? What are your main responsibilities and day-to-day activities?
RG: We set up this team ahead of the UK-Australia and UK-New Zealand FTAs coming into force in 2023. We recognised the need to raise awareness among businesses of these FTAs and to build the capability of our own business-facing teams to support business to understand the benefits.
We needed to bridge the gap between the very technical world of negotiations and legal provisions, and the more tangible, commercial possibilities that will see businesses grow, and the UK economy grow with them. This started with the development of a suite of new guidance for SMEs, based on the opportunities identified in FTA markets. From there, we built a team that could support business engagement and campaign to raise awareness across the UK and in-market.
The team is a mature one now in Whitehall terms, but we are still learning. I’m involved in a lot of different projects across DBT work on exports, but thankfully have a fantastic team delivering our day-to-day work.
My work can range from travelling overseas to meet with colleagues and businesses – earlier this year I was in Malaysia, Brunei and Singapore discussing CPTPP – to briefing colleagues about the upcoming activity and how they can get involved, reviewing guidance or speaking at business events. It is really varied and that’s what I love about the role!
WBG: What advice would you give any businesses reading this who want to understand more about the benefits of the FTAs that the UK has already signed?
RG: First, go to great.gov.uk where you can access market-specific information, including the guidance my team has produced covering many sectors, designed to help businesses understand what provisions might be applicable.
But each business is different, and so the specific relevance of the provisions will vary significantly. If you are unsure, it is important that you get specific advice from sources like the Chartered Institute for Export & International Trade, local Chambers or other professionals.
If a business is exporting goods, there is a good chance they are already using a logistics firm or freight forwarder who may also be able to provide advice. Getting it wrong can be costly, so it is important to get the advice needed to navigate the specifics.
DBT also has a range of services which can provide more general support and information, such as the Export Academy, the International Trade Advisor services – which can provide one-to-one support – and in-market support though the ESS International Markets Service, that can help you find the right professional to understand local rules and regulations.
WBG: What are you most looking forward to about the Import Export Show?
RG: I love getting out of the office and meeting businesses and other trade professionals. We have a vibrant and innovative trade industry in the UK, and I’m looking forward to making new connections and taking away new ideas and challenges for us to think about.
We can only achieve our objectives through partnership with industry and the Import Export Show is a great opportunity to strengthen those relationships.
You can still book your tickets for the Chartered Institute’s Import Export Show, which takes place 3 December in London. You'll have the opportunity to hear from business leaders, thought leaders and policymakers from the world of trade – including Richard Given.
The show has the theme of ‘Local to global – how to empower international trade’ and will include sessions covering FTA utilisation, upcoming regulatory changes in the UK and EU, and how to navigate the new world order following a year of pivotal elections.
