Key trade-related measures announced by the Chancellor in last week’s Autumn Statement have been highlighted by the Department for International Trade (DIT).
In particular, it points out that additional financial support for UK exporters will be available through the UK’s export credit agency, UK Export Finance (UKEF).
The new measures will see what the DIT describes as UKEF’s “total risk appetite” double to £5 billion and the maximum cover limit for individual markets increase by up to 100%. The move will, potentially, provide up to £2.5 billion of additional capacity to support exports to some destinations.
The number of pre-approved local currencies in which UKEF can offer support is also being significantly increased, rising from 10 to 40. More overseas buyers of UK exports will therefore be able to pay in their own currency.
Overall, the increased support for UKEF should ensure that no viable UK export fails for lack of finance or insurance from the private sector, the DIT claims.
In a further significant move, the Department will receive £79.4 million to develop and deliver an independent international trade policy. The money will be used to support a smooth exit from the EU and – the DIT explains – will help to negotiate the best possible global trading arrangements for the UK.
Additional resources will also be allocated to strengthen trade policy capability within DIT in co-operation with the Foreign and Commonwealth Office (FCO). Annual funding of £26 million by 2019/20 was allocated to this initiative in the Autumn Statement.
Commenting on the measures, International Trade Secretary Dr Liam Fox said that they will help ensure that the Government is able to support more UK exporters, attract more overseas buyers and strengthen the UK’s capability to develop and deliver an international trade policy.
