International February Briefing

TRADE

British Chambers of Commerce (BCC) – 3 years on UK/EU FTA

The third year of the UK-EU Trade and Co-operation Agreement (TCA) has seen several significant milestones that have changed some of the dynamics of the UK’s trading relationship with the EU. These include the introduction and phased implementation of the Windsor Framework, the UK re-joining the Horizon Europe research and scientific co-operation programme, as well as Copernicus. The British Chambers of Commerce (BCC) report shows the latest research findings, analysis of new regulations, and BCC’s new policy recommendations for EU-UK trade heading into the 2024

UK/Switzerland financial services agreement

The Berne Financial Services Agreement enables the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services. For certain sectors it means that a firm based in the UK will be able to serve clients in Switzerland while largely following UK rules, and vice versa.

Border Target Operating Model - New import controls

Changes that came into effect since 31 January 2024:

• The introduction of health certification on imports from the EU of medium risk:
  - animal products
  - plants
  - plant products
• The introduction of health certification on imports from the EU of high-risk food and feed of non-animal origin
• The introduction of new checks and controls when moving Irish goods (i.e. any goods other than Qualifying Northern Irish Goods) from Irish ports directly to Great Britain

3 Things to help and prepare you for the changes that are coming:

• Know your risk-category – use these online tools to find the risk category of your commodity
• Ensure that your EU supply chain is preparing to provide you with health certificates and/or phytosanitary certificates – find out more about the border target operating model
• Be ready to correctly submit your pre-notification in IPAFFS – see guidance on the border target operating model 

Summary of European Commission guidance on the EU CBAM for UK exporters

On 1 October 2023, the European Union’s Carbon Border Adjustment Mechanism (CBAM) entered into application in its transitional phase. During the transitional phase, importers of CBAM goods in the EU are required to report a set of data, including emissions embedded in their goods. The European Commission has published summary guidance on the EU CBAMs Summary of European Commission guidance on the EU CBAM for UK exporters.. The guidance is intended to help UK exporters of CBAM goods to identify relevant EU guidance and information during the transitional phase.

GLOBAL TRADE

Singapore ratify UK membership to CPTPP

Singapore has formally ratified the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the second existing member to do so after Japan. The accession will upgrade the UK-Singapore bilateral relationship, providing opportunities to deepen participation in each other’s supply chains, diversify trade, grow investment into our economies, and collaborate on shared priorities, all while supporting greater access and opportunities for business.

UK Florida MoU

The UK has signed an MoU with the state of Florida – the home to the NASA Kennedy Space Center and world-leading capabilities in launch infrastructure, manufacturing, and satellite development, presenting huge opportunities for the UK’s growing space industry. The UK has MoUs with seven US states – Indiana, North Carolina, South Carolina, Oklahoma, Utah, Washington, and Florida – with a combined GDP of £3.3tn. The UK is also actively engaging with further states including Texas, California, Colorado, and Illinois. UK and Florida sign pact to boost trade

UK-Canada Trade Negotiation

The UK has suspended trade negotiations with Canada due to disagreements over access to agricultural markets. This means that rules of origin will change at the end of March in supply chains where EU content was included in goods being traded with Canada. The continuity agreement will continue covering UK-Canada trade, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) ratification is still ongoing. Details of the progress on UK free trade agreement negotiations can be found here, reaction from the British Chambers of Commerce can be found here.

Suffolk Chamber International Trade Group (SCITG)

The SCITG is a forum for sharing best practice, hearing from local and national policymakers and thought leaders to enhance knowledge and capabilities in developing international trading activities.

For further details on the group or if you would like to be part of the SCITG visit the International Trade Hub