News story

New trade envoys and business investment to boost trade links

In a speech to the Lord Mayor’s banquet at the Guildhall, he will also announce a new £8 million pilot project to strengthen the capacity of…

From:
Department for Business, Innovation & Skills
Published
12 November 2012
This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

In a speech to the Lord Mayor’s banquet at the Guildhall, he will also announce a new £8 million pilot project to strengthen the capacity of overseas business groups, such as chambers of commerce, in 20 key countries.

Both moves are part of the Government’s ambitious strategy to help double UK exports to £1 trillion by 2020.

The following people have been appointed as Trade Envoys, with immediate effect:

  • Baroness Bonham Carter of Yarnbury, Trade Envoy to Mexico.
  • Baroness Morris of Bolton, Trade Envoy to Jordan, Kuwait, Palestinian Territories.
  • Lord Puttnam of Queensgate, Trade Envoy to Vietnam, Laos and Cambodia.
  • Lord Risby of Haverhill, Trade Envoy to Algeria.
  • Baroness Scotland of Asthal, Trade Envoy to South Africa.
  • Lord Sharman of Redlynch, Trade Envoy to Morocco.
  • Charles Hendry MP, Trade Envoy to Azerbaijan, Kazakhstan and Turkmenistan.
  • Richard Graham MP, Trade Envoy to Indonesia

Prime Minister David Cameron said:

“We need to show the world at every opportunity this country’s great creativity and dynamism if we are going to win this global race for jobs, trade and investment. That is why I am delighted that some of our great parliamentarians have accepted my invitation to use their experience and know-how to bang the drum for British business.”

Trade and Investment Minister Lord Green said:

“For the long-term health of the economy, we need to go where the growth is and look to export outside the EU. That’s why we need to build up links with fast-growing emerging economies.

“Business groups can play an invaluable role in helping British companies establish themselves in overseas markets.

“We will be working closely with them in the new project announced today, helping them develop their ability to provide more support to firms looking to boost their trading activities.”

Parliamentary Secretary for Business, Innovation and Skills and Chair of the Prime Minister’s Trade Envoys Network Lord Marland said:

“The Prime Minister has put trade at the heart of our country’s economic growth. I am delighted to chair and work with a cross-party group of high calibre and experienced individuals who are prepared to help British companies with their export drive in high growth markets.”

The role of trade envoy will involve a proactive programme of activity to include leading trade delegations and raising the profile of the relevant markets within the UK. Each representative will complete up to two overseas visits per year as well as a programme of UK-based activity.

The network of the Prime Minister’s Trade Envoys will be chaired by Lord Marland and will complement existing initiatives including the Business Ambassadors Network and the Prime Minister’s Business Advisory Group.

The overseas pilot project will help transform the way the UK delivers trade support to UK business overseas and put the UK on more of a competitive footing with countries like Germany, the US and France, all of whom have strong overseas chambers capable of supporting domestic businesses in overseas markets.

A new unit has been set up within UKTI to see the project through its first phase and will build on discussions across a range of business bodies such as the British Chambers of Commerce, the Confederation of British Industry, the Institute of Directors, the Engineering Employers Federation and the Federation of Small Businesses. This aims to make the experience of growing and expanding into overseas markets simpler and more seamless for UK business.

The project will look to enhance the range of overseas support available to UK companies including advisory services, launchpad offices, sector specialist working groups, trade missions, market intelligence reports and mentoring for new exporters.

The intention is for business groups, such as chambers, that are based in these markets to become a stronger and more integrated resource for UK businesses, alongside the work already being done by the Foreign and Commonwealth Office and UKTI.

Notes to editors:

  1. UK Trade & Investment (UKTI) is the Government Department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy - acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For more information on UKTI, visit www.ukti.gov.uk or visit the online newsroom at www.ukti.gov.uk/media.

  2. The Government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries.’ It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011:

  • To create the most competitive tax system in the G20

  • To make the UK the best place in Europe to start, finance and grow a business

  • To encourage investment and exports as a route to a more balanced economy

  • To create a more educated workforce that is the most flexible in Europe.

Work is underway across Government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the Government wants the economy to travel.

  1. Biographies of the Trade representatives and country information:

Baroness (Jane) Bonham Carter of Yarnbury (Liberal Democrat) is deputy convener of Liberal Democrat Peers and Co-Chair of the Parliamentary Committee on Culture, Olympics, Media and Sport. She was a producer at the BBC, working on Panorama and Newsnight and Programme Editor for Channel 4’s A Week in Politics. In 2004 she was made a Life Peer, and became a party spokesperson on Broadcasting and the Arts.

Country factfile for Mexico:

  • Mexico’s economy is the world’s fourteenth largest, and the 11th largest in Purchasing Power Parity terms.

  • It has an extensive network of free trade agreements, including with the EU. Its membership of NAFTA gives it easy access to the huge American market.

  • Mexico trades more than the sum of Brazil, Argentina, Chile and Venezuela combined.

  • UK market share is around 1%, though there is huge potential to increase this.

  • The UK is the 5th largest investor in Mexico.

  • Mexico is recognized by UK Trade & Investment as an emerging (high growth) market. It is a market suitable for export from the following sectors: Automotive & Aerospace, Creative Industries, Education, Environment, Financial Services, Oil & Gas, Healthcare, IT, Security, Power (including new and renewable energies) and Infrastructure.

Baroness (Patricia) Morris of Bolton is a Conservative peer. She is the Deputy Speaker in the House of Lords and Deputy Chairman of Committees. She has also been an opposition spokesperson on Health, Education and Skills, Children Schools and Families, Women, and Work and Pensions.

Country factfile for Jordan, Kuwait, Palestinian Territories:

  • In 2011 UK exports of goods to Jordan were £255 million (an increase of 14% year on year), with imports from Jordan of £32 million.

  • Jordan needs to invest heavily in alternative and renewable energy including wind and solar, the renewable energy market for equipment and services is around US$40 million.

  • The energy sector, particularly power generation, municipal gas systems, and oil shale development are key sectors of growth. The estimated investment required for projects in the energy sector by 2020 is between US$14-18 billion, an average of US$1.2 billion per annum.

  • The ICT sector is the fastest growing sector in Jordan’s economy with 25% growth and contributing 15% of GDP. There are 400 companies in Telecom, IT, Online and mobile content, outsourcing and games development.

  • Regionally, Jordan is a haven of stability for business and the recent Arab Spring has made Jordan even more attractive as place for investment and a hub for business.

  • Kuwait is the 5th richest country in the world per capita. Considerable disposable income and strong historic ties to the UK mean there is a wealth of opportunities for UK companies.

  • The Kuwait government is keen to reduce the dependence on crude oil revenue. It plans to increase investment in the downstream industries of the oil sector and also promote the role of the private sector and privatisation.

  • In Palestine, there are good opportunities for the UK in financial and legal sector, education, construction and ICT.

Lord (David) Puttnam (Labour) CBE, FRSA is a film producer who was created a peer in 1997. He is a fellow of the World Economic Forum, Davos, and was President of UNICEF UK from 2002-09. He is also Deputy Chair of Channel 4 and Director of Enigma Productions Ltd.

Country factfile for Vietnam

  • One of the fastest growing and vibrant economies in Asia, an estimated 20 million middle class consumers with purchasing power equivalent to that of Benelux or Australia.

  • In 2011 UK exports of goods and services to Vietnam were worth £520.3 million (up 8% from the previous year) whilst UK imports of goods and services from Vietnam were worth £1.75 billion (up 33% from the previous year).

  • The UK is committed to promoting our trade links with Vietnam. We attach great importance to the UK/Vietnam Joint Economic and Trade Committee (JETCO) in developing bilateral trade.

  • UKTI has designated Vietnam as a High Growth Market with significant opportunities in Infrastructure, Oil & Gas, Retail & Logistics, Railways and Ports. Other areas where there is significant activity include Environment, Financial & Legal Services and ICT.

Lord (Richard) Risby served as Conservative Member of Parliament (MP) for Bury St Edmunds from 1992 to 1997, and for West Suffolk from 1997 to 2010. He joined the House of Lords in 2010. His political interests include small business and foreign affairs.

Country Factfile for Algeria

  • Algeria is the 4th largest crude oil producer in Africa and the 6th largest gas producer in the world. It is an increasingly important energy supplier for the EU (currently the 4th largest) and will increase its share as new distribution networks come on line.

  • Algeria is also blessed with many other natural resources such as gold, iron, zinc, uranium, copper, phosphate, tungsten and kaolin. And it has enormous potential for renewable energy, in particular solar, wind and tidal energy.

  • Algeria is a strategic hub for Europe, the Maghreb and sub-Saharan Africa. Algiers is only 2.5 hours away from the UK with at least one flight every day from London Heathrow. An East-West highway is being built to improve trans-Maghreb links and a trans-Saharan highway is planned.

Baroness (Patricia) Scotland of Asthal PC, QC (Labour) is a British barrister, and has served in many ministerial positions within the UK Government, most notably as the Attorney General for England and Wales and Advocate General for Northern Ireland. She became a peer in 1997.

Country factfile for South Africa

  • The largest economy in Africa.

  • Already UK investment has created 138,000 jobs between 2003 and 2011.

  • The UK accounts for 54% of booked Foreign Direct Investment into South Africa.

  • Bilateral trade between the two countries reached approx. £10.4billion in 2011.

  • UK exports (goods and services) in 2011 increased by 18% while imports of South African goods and services decreased by 0.3%.

  • 55% of UK exports to sub-Saharan Africa went to South Africa in 2011.

  • Exports to South Africa far outstrip those to Brazil which has 3 times the population.

  • £100 billion government infrastructure programme focusing on rail, power, education, low cost housing and healthcare (including PPP projects). Opportunities exist for UK companies across all sectors.

**
Lord (Colin) Sharman** (Liberal Democrat) was the British chairman of Aviva Group and former chairman of KPMG International. A former Chairman of KPMG, he entered the House of Lords in 1999. He has been a member of the ABN AMRO Supervisory Board since 2003. He has been chairman of Aviva Group since January 2006.

**Country Factfile for Morocco: **

  • Unique and strategic location at the threshold of Europe.

  • Platform for reaching other international markets, especially North and West Africa.

  • Good communication network and global transport connections by air, sea and road.

  • Open Skies Agreement with the EU and introduction of several new airlines including low cost flights between the UK and Morocco with BA and BMI.

  • Strong banking and finance facilities.

  • Britain is one of Morocco’s oldest partners. Diplomatic links go back at least seven centuries. Britain was Morocco’s main trading partner during the 19th century.

  • Over the last decade, Morocco has significantly liberalised its trade regime and strengthened its financial sector. These reforms have enhanced the overall productivity of the economy and heightened its resilience to shocks.

  • In 2011 export of UK goods to Morocco totalled £546 million - a 4% increase from previous year.

Richard Graham is the Conservative MP for Gloucester, elected in 2010. He has previously held a diplomatic career, having joined the Foreign and Commonwealth Office in 1986. He was based in Nairobi and then was British Trade Commissioner for China, and HM Consul in Macau. He joined Barings plc as its Chief Representative for China in 1993, and became a director of Baring Asset Management in 1996. Graham has lived and worked in ten countries speaks eight languages, and is the only parliamentarian who speaks Cantonese and Mandarin. He chairs the All-Party Parliamentary Group on Indonesia.

Country factfile for Indonesia

  • Indonesia is projected to be the world’s 5th largest economy by 2030. The UK sees great potential in Indonesia and is keen to build on existing trade and investment.

  • UK companies are interested in new infrastructure opportunities in Indonesia. Important that the terms of participation in infrastructure development projects are both clearly defined and attractive to foreign investors.

  • A growing affluent and aspirational middle-class (estimated to be at least 45million) - larger than India’s.

  • The UK is ranked 20th largest exporter to Indonesia and the 3rd largest among EU member states.

  • In April 2012, during the PM David Cameron’s visit to Indonesia, a partnership commitment to double trade (goods & services) by 2015 to £4.4 billion was announced. Total trade in 2011 was £2.4 billion (up 10% year on year).

  • In 2011 exports of goods and services to Indonesia were worth £0.97 billion, an increase of 28%.

  • The UK’s largest exports to Indonesia include power generation equipment; general industrial machinery, road vehicles, pulp & waste paper and specialised machinery.**

Charles Hendry** is the conservative MP for Wealden, elected to Parliament in 1992 and again in 2001. In May 2010 he was appointed Minister of State for the Department of Energy and Climate Change and served until 2012. Before being appointed as a Minister, he has served as a party spokesman on trade and Industry and education & skills.

Country factfile on Kazakhstan, Azerbaijan and Turkmenistan:

  • Expenditure on major new oil & gas development within Kazakhstan is expected to exceed US$100 billion in the next 10 years. Kazakhstan will continue to offer considerable opportunities for UK companies in the oil & gas sector.

  • There are also significant opportunities for UK companies in the Education and Training Sector.

  • Both imports and exports to Kazakhstan were up 124% year-on-year from 2010.

  • The UK is one of the largest investors in Kazakhstan, having provided more than US$ 15 billion of investment since the country’s independence in 1991.

  • The main driver of the Azeri economy is oil and gas - a real British success story. BP has a dominant market position, and has invested about US$23 billion in the last decade.

  • Around 150 British businesses operate in Azerbaijan, from FTSE 100 firms to SMEs. Most work in, or support, BP’s supply chain

  • The UK is already the single largest investor in Azerbaijan and is well placed to do more.

  • Outside the oil and gas sector, there are opportunities in the following sectors: Construction, financial services and education. UK firms are also increasingly showing interest in the retail sector, both luxury and mid range brands.

  • Latest figures for 2012 indicate that bilateral trade in goods (imports and exports) with Azerbaijan for the period Jan-Aug have increased by 70% on the same period in 2011.

  1. To find your local chamber of commerce go to http://www.britishchambers.org.uk/

  2. To see a list of overseas British chambers of commerce go to http://www.britishchambers.org.uk/business/trading-internationally/international-contacts.html

Notes to Editors

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Published 12 November 2012