“Bridging the Gap – Exploring International and Canadian Supply Chain Solutions and Partnerships”.
A fantastic opportunity to network with key International companies and organisations.
This is an opportunity for companies in this emerging sector to consider International obstacles to the growth of UAS, but to do so in an area of Canada where the Government wants to look at attracting innovative companies to set-up R&D/production facilities at its emerging centre of excellence at Slemon Park.
The UK-Algeria Business Council and Enterprise Parliament are pleased to organise a multi-sector Trade Mission to Algeria, from 14-17 April 2013.
British Prime Minister David Cameron’s recent working and friendship visit to Algeria confirms the good political and economic relations between the two countries. The PM said that he had “excellent” discussions with President Bouteflika, adding that his visit to Algeria was the first of a British Prime Minister since 1962.
“We have agreed to forge a strategic partnership between our two countries,” he said, adding that an important part of its will be related to security, especially in defence, intelligence and fight against terrorism.
David Cameron also said that he discussed with the Head of State the economic relations between the two countries and hoped that the two sides will further strengthen them in the future. “We also talked about the necessity to strengthen English language teaching in Algeria,” he concluded.
To find out more about the mission, please click here.
Trade barriers between the EU and Peru were lifted on 1 March 2013, when the ambitious and comprehensive trade agreement concluded in 2012 was provisionally applied in the South American country.
The agreement will open up markets for exporters from both sides, eventually bringing annual savings of more than €500 million. However, it is the improved and more stable conditions for trade and investment that are expected to bring the biggest gains.
The deal includes far-reaching provisions on the protection of human rights and the rule of law, as well as commitments to effectively implement international conventions on labour rights and environmental protection.
The EU is Peru’s third largest source of imports (mainly machinery and transport equipment) and the main destination for its exports (mainly fuels and mining products).
The trade agreement represents an important opportunity for Peruvian agricultural and fisheries exports, which already represent almost a third of the country’s exports to the Union.
EU-Peru trade has grown significantly in recent years and its volume reached €9.2 billion in 2011, corresponding to 16% of Peru’s trade volume.
Colombia, which also signed the trade agreement with the EU in June 2012, is expected to join the implementation phase later this year, once its internal ratification procedures are completed.
Health and safety rules can seldom escape the accusation of bureaucracy, and those emanating from Brussels are especially likely to provoke suspicion and discontent in business circles.
So what is to be made of the latest proposals from the European Commission to improve workers’ protection against exposure to hazardous chemicals?
To some extent this is a tidying up exercise as the EU already has five directives in this area and what the Commission wants is to make sure that they all tally with its latest rules on the classification, labelling and packaging (CLP) of chemicals.
In practical terms this means that manufacturers and suppliers of chemical substances and mixtures will (if the proposal is adopted) have to provide harmonised labelling information on hazard classification, alerting the user to the presence of hazardous chemicals, the need to avoid exposure and any associated risks.
This will, the Commission argues, allow employers to put in place appropriate risk management measures to protect workers’ health and safety, such as process enclosure, ventilation systems and the use of personal protective equipment (PPE).
It emphasises that the proposals have already been the subject of two rounds of consultation with employer and trade union representatives at EU level (the social partners).
Existing EU chemical classification and labelling legislation will be repealed on 1 June 2015 when new rules come into force so expect this latest piece of “red tape” to be implemented at about the same time, assuming it is accepted by the European Parliament and the Council of Ministers.
A new European Commission report highlights a selection of key barriers faced by EU companies and aims to raise awareness of the importance of addressing trade obstacles in such a way that they can fully reap the benefits of the global market.
The report is seen as underlining the Union’s market access strategy and as recognition of the calculation that 90% of global economic growth is expected to be generated outside the EU by 2015.
This third edition of the Trade and Investment Barriers Report (TIBR 2013) provides an account of the progress achieved on those barriers, identified in previous editions (2011 and 2012), that continue to be of concern to EU exporters and could not be fully solved to date.
It also highlights a number of new barriers that appeared in 2012 and require concerted action and political prioritisation both by the Commission and by the Member States in certain key markets.
As in the 2012 edition, this report focuses on market access barriers in some of the EU’s strategic partners (China, India, Japan, Brazil, Russia and the USA).
They represent the EU’s main export markets, in terms of goods (40.9% of goods exports in 2010), services (40.0%) and foreign direct investments (41.1% of FDI outward stock): the USA is the EU’s first export market, China second, Russia fourth, Japan sixth, India eighth and Brazil ninth.
“The focus of this report on some of the EU’s strategic partners does obviously not mean that barriers in other markets should be neglected,” the report stresses. “On the contrary, the Commission is actively engaging with a far broader group of trading partners to improve market access conditions for EU companies still confronted with a considerable number of trade obstacles.”
The EU and Canada have agreed to co-operate more closely by building on their existing customs co-operation agreement and extending it to include supply chain security and related risk-management matters.
EU Customs Commissioner Algirdas Šemeta said: “In a globalised world with globalised trade, no country can ensure the security of their supply chain in isolation. International co-operation is essential to protect citizens’ security while allowing the smooth flow of trade.”
The agreement would, he went on, provide the tools to improve customs controls while cutting red tape for safe traders in both territories.
Co-operation will include working towards mutual recognition of risk-management techniques, risk standards, security controls and trade partnership programmes, ie the EU’s Authorised Economic Operator (AEO) and Canada’s Partners in Protection (PIP).
The agreement will be concluded after the ratification process in the EU and Canada, which is expected to take place in the coming months, is completed.
More information on EU customs co-operation agreements is available on the European Commission website.
The tenth issue of the Export Control Organisation’s Training Bulletin contains full details of courses, seminars and workshops that will increase your understanding of the UK’s strategic export controls.
These events are aimed at exporting and trading individuals or companies of all sizes, as well as government organisations, and cater for a wide range of knowledge levels.
The latest bulletin includes all details, charges and an application form.
For more information on export controls and the work of the ECO generally, call our helpline on 020 7215 4594, or email with your questions: [email protected]
Read updates issued by the Export Control Organisation including details about imposition of arms embargoes, Open General Export Licence amendments or announcements about Control List changes.
Notice to Exporters 2013/08 The Export Control Organisation (ECO), part of the Department for Business, Innovation and Skills, has amended Open General Export Licence (International Non-Proliferation Regime Decontrols: Dual-Use Items). ECO has also published Open General Export Licence (International Non-Proliferation Regime Decontrols: Military Items).
On 21 February 2013, the British Chamber of Commerce, in cooperation with the British Embassy and UK Trade and Investment (UKTI), launched the Building your Business in Belgium (BBB) scheme – an integrated service for companies new to the Belgian marketplace.
The scheme provides a ‘safe landing’ to companies doing business in Belgium for the first time through professional advice, expertise and services that complement those provided to UK exporters by UKTI and the British Embassy.
The event was hosted by Jonathan Brenton, HM Ambassador to Belgium and was attended by UK and international business professionals who welcomed this new initiative.
Belgium may not be as well known as some other global markets, but it is an open and dynamic export market for British goods and services. It is the UK’s 6th highest export partner worldwide (Source: Hm Revenue & Customs, October 2011).
“It is an ideal place for the first time exporter and a great stepping stone to the rest of Europe” says Jonathan Brenton, HM Ambassador to Belgium, “English is widely accepted, and there are quick and easy communications and connections with the UK and the rest of mainland Europe”. He added that increased export/import activities will benefit overall economic growth in both countries.
“The Chamber’s partnership with UK Government is a great example of how business can work with the public sector to provide a better joined up service for UK businesses” explains Glynis Whiting, President of the British Chamber in Belgium. “We look forward to playing our part in helping the much needed export led growth in Europe”.
Another initiative that supports business in Belgium is the The Golden Bridge Awards, launched by the British Chamber last year and also supported by UKTI. It is an annual award that recognises the most successful UK companies doing business in Belgium. Open to both service and manufacturing companies, the award aims to encourage more exports to Belgium by UK companies and also to give British products and services a higher profile at the heart of the EU.
The Awards are operated in partnership with the Belgian-Luxembourg Chamber of Commerce in Great Britain, which has run a successful scheme since 1997 recognising the success of companies from Belgium and Luxembourg exporting to the UK.
For more information, please contact:
British Chamber of Commerce in Belgium Boulevard Bischoffsheim 11 1000 Brussels T +32 (0)2 540 90 30 Joanna De Keyser- Business Development Executive[email protected]
BCC downgrades its growth forecasts: from 1.0% to 0.6% in 2013, and from 1.8% to 1.7% in 2014
Prospects should improve in the medium term: in 2015, we forecast growth of 2.2%
Downward revision due to numerous factors, such as the contraction of GDP in Q4 2012, and worsening prospects in the eurozone
Unemployment forecast is 50,000 lower than in December
Public sector borrowing is forecast at £89.7bn in 2012/13, £9.2bn higher than the OBR predicted in December 2012
The British Chambers of Commerce (BCC) today (Thursday) has published its latest economic forecast, which sees UK growth in 2013 revised downwards from 1.0% to 0.6% in 2013, and from 1.8% to 1.7% in 2014. Businesses are resilient and have the ambition needed to drive our national recovery forward, but reduced global growth prospects, and the ongoing need to repair Britain’s balance sheet, will slow the pace of the UK recovery over the next couple of years. However prospects will gradually improve in the medium term. We hope to see the Chancellor use his Budget on March 20th to deliver radical measures, including a significant re-prioritization of resources, to enable businesses to create jobs, invest and export.
Economic Forecast
UK GDP
The BCC is cutting its UK growth forecast for 2013 from 1.0% to 0.6% in 2013 and to 1.7%, down from 1.8%, in 2014.
In December 2012, we predicted growth of 1.0% in 2013 and 1.8% in 2014.
The downward revision to our forecasts is due to the following factors: 1) the unexpected 0.3% GDP decline in Q4 2012; 2) worsening global growth prospects, mainly in the eurozone; and 3) the ongoing need to mend Britain’s public finances.
We expect UK growth to improve gradually over the medium term, but the recovery will be slow by historical standards.
For 2015, we predict stronger UK GDP growth of 2.2%.
Main components of demand
Household consumption. After rising by 1.0% in 2012, household consumption will grow by 1.0% in 2013, 1.9% in 2014 and 2.2% in 2015. Gradual declines in inflation over the next two years, though slower than expected in December, will ease the squeeze on disposable incomes and create moderate increases in domestic demand.
Business investment has been volatile in quarterly terms over the last year or so. Despite the weakness of the economy, we expect business investment to strengthen gradually, growing by 5.0% in 2013, 5.1% in 2014, and by 5.2% in 2015.
The much-needed rebalancing of the UK economy has remained slow. In 2012 exports fell by 0.3% and imports rose by 2%. Our new forecast is that exports will grow by a very modest 1.1% in 2013, accelerating gradually to 3.3% in 2014, and 4.1% in 2015. Within this total, there will be a further shift in exports away from the European Union towards other faster-growing regions, mainly Asia.
The current account deficit worsened sharply in 2012 to 3.3% of GDP, approaching its highest level since 1980. This reflected the much larger trade deficit, and a large fall in investment income. Over the next few years, the current account deficit is forecast to narrow, but at a modest pace to 3.0% in 2013, 2.7% in 2014, and 2.4% in 2015.
Main sectors of the economy
Manufacturing is still a strong sector, but its relative share of total UK output has fallen in recent decades, and now accounts for only 10.5% of the whole economy. We expect manufacturing output to fall by 0.5% in 2013, followed by modest positive growth of 1.0% in 2014 and 1.2% in 2015.
Weak growth in world trade will limit the scope for increases in manufacturing exports over the next few years. Given that manufacturing is now productive and well managed, it has the potential to recover, and many firms have retained their skill bases during the recession. However the sector has experienced large productivity falls and this must be remedied.
Construction remains a weak and volatile sector in the UK economy, with a full-year decline of 8.2% in 2012, and a year-on-year fall of 9.3% in Q4 2012. In full-year terms, we predict that construction output will fall by a further 0.6% in 2013, followed by positive but weak growth of 1.0% in 2014 and 1.1% in 2015.
Service sector average growth is forecast at 1.1% in 2013, 2.1% in 2014, and 2.6% in 2015, a stronger performance than the other sectors. The service sector is by far the largest sector in the UK economy, and accounts for 77% of total output.
Unemployment
We predict that total UK unemployment will increase from 2.501 million (7.8% of the workforce) in Q4 2012, to 2.600 million (7.9% of the workforce) in Q2 2014, a net increase of 99,000 in the jobless total. This means that we are expecting an unemployment peak that is 50,000 lower than our previous forecast.
We also expect employment to increase, but any new jobs that are created will not be enough to absorb the increase in the number of economically active people.
This new forecast reflects the expectations that the increased flexibility and resilience of the UK labour market will be maintained. Nevertheless, we still expect moderate increases in the UK jobless total due to the following reasons: 1. Some of the planned public spending cuts that are yet to be implemented will have an adverse impact on jobs. 2. Low UK GDP growth will dampen demand for labour 3. Productivity falls seen since 2008 will start to partially reverse, and this will add to the jobless total at a time when demand remains weak.
Youth unemployment is forecast to increase from 974,000 in Q4 2012 to 995,000 in Q2 2014. We expect unemployment in the 16-17 age group to total around 205,000 (a jobless rate of 38.5%) in Q2 2014. Unemployment in the 18-24 age group is forecast to total around 790,000 (a jobless rate of 18.8%) in Q2 2014.
Public finances and inflation
Our public sector borrowing forecast for 2012/13 is £89.7 billion, £9.2 billion higher than the OBR predicted in December 2012.
In average full-year terms, we are now predicting annual CPI inflation at 2.7% in 2013, 2.3% in 2014, and 2.2% in 2015. Our new CPI inflation forecasts are higher than in December for 2013 and 2014.
For RPI inflation we are now predicting 3.4% in 2013, 3.0% in 2014, and 3.1% in 2015.
Interest rates and Quantitative Easing (QE)
We expect official UK interest rates to remain at 0.5% until Q4 2014, and then to rise modestly, to 0.75% in Q1 2015, and to 1.00% in Q2 2015. This means that any future interest rate increases are likely to occur later than we predicted in December.
In December, we thought that Quantitative Easing would not be increased further. We now predict that there will be a £50bn increase in QE to £425bn in Q2 2013, probably in May. Our view remains that increasing QE in the near future is unnecessary and would be unduly risky.
Commenting, John Longworth, Director General of the British Chambers of Commerce, said:
“Our new forecast highlights the challenges facing the UK economy over the months and years ahead. We have advocated reducing the deficit, but have for some considerable time said that this must be coupled with a plan for growth, together creating a new model economy that will allow businesses to create jobs, invest and export.
“Businesses up and down the country tell me they are confident and determined to grow. More must be done to support the ambitions of growing companies, many of whom will be the wealth creators of tomorrow.
“This is why we are calling for decisive action in the Budget. The government must make a serious effort to deliver on the many promises already made. This requires a focus on implementing measures that will boost growth, such as the movement of the business bank from rhetoric to reality, increasing the availability of access to finance, and delivering key infrastructure projects that will raise the confidence of businesses on the ground.
“Politicians across the entire spectrum need to show imagination and leadership. If they demonstrate the courage to put Britain’s economic priorities above politics, they can make a real difference in transforming our economy so that Britain can lead the way and attract enterprise and investment for years to come.”
David Kern, BCC Chief Economist, added:
“Talk of a new recession is currently pessimistic. The ONS’ own data revisions raise doubts as to whether there was in fact a recession early in 2012. Following the 0.3% fall in Q4 2012, GDP is likely to increase by 0.1% in Q1 2013. We expect quarterly growth to increase very gradually over the next two years, but it will remain modest and below-trend for some time. In addition, we now expect GDP to return to its pre-recession levels early in 2015, and the squeeze on living standards will continue for a while longer.
“Our new forecast indicates that in 2012/13, and over the next three financial years, public sector borrowing will be higher than the OBR predicted in December. Our persistent fiscal challenges have contributed to the UK’s downgrading by Moody’s. Reducing the structural deficit, which remains unacceptably high, is proving a longer and more painful task than initially thought. But combining this policy with effective measures to boost growth is critical to avoid a vicious circle of weak growth and ballooning deficits.
“The debate about the UK monetary regime ahead of the arrival of Mark Carney as next Bank of England Governor has generated expectations that QE will be increased shortly, and that the MPC is now more willing to tolerate higher inflation and a much weaker pound. These perceptions are problematic. Adding to QE should only be considered if new threats emerge to the stability of the UK banking system. In the meantime, we believe that more QE would only provide marginal benefits for the economy, while heightening longer-term risks of financial distortions, bubbles and higher inflation.”