After much speculation about the future of the Department for International Trade, Prime Minister Johnson opted for continuity, keeping the department but with a new face at the top.
Truss trades up
One of Prime Minister Johnson’s first decisions was to appoint former Chief Secretary to the Treasury Liz Truss as his new International Trade Secretary, replacing Dr. Liam Fox. Truss has hit the ground running, re-focusing the department on three key priorities: preparing businesses for Brexit; securing a Free Trade Agreement (FTA) with the United States; and creating 10 new free ports across the UK. The CBI will be discussing all three issues with Truss when Carolyn has her first call with her towards the end of the month. We expect them to dominate the agenda at the September meeting of the Strategic Trade Advisory Group (STAG), which will likely continue to play an important role in guiding future trade negotiations outside the EU.
The CBI has an existing relationship with the new Trade Secretary and we expect a strong pro-trade agenda to filter through the whole of the Department for International trade (DIT), supporting UK business efforts globally.
Preparing for a no deal Brexit
With the new Prime Minister’s change of tone on the prospect of a no deal Brexit in October, we set out a detailed set of recommendations for the UK, EU and businesses (insert link) to support preparations for a no deal Brexit. We have also participated in meetings with Chancellor of the Duchy of Lancaster Michael Gove MP and Business Secretary Andrea Leadsom MP where this has been discussed. Our focus remains relentlessly on making the case for a deal, but we will also be holding the government’s feet to the fire to make sure proper preparations are made if no deal is being considered as a serious possibility. And the implications of no deal would be felt with non-EU trade too, with the loss of access to a number of EU trade agreements and the impact of the government’s no deal tariff schedules on imports.
CBI participates in new Expert Trade Advisory Groups (ETAGs)
The CBI has joined several of the newly created ETAGs, which we expect to play an important role in guiding future trade negotiations. The CBI is currently represented on the groups looking at investment, continuity of EU trade agreements, sustainability, customs, and trade for development.The terms of reference of some of these groups are still being finalised but we hope that they will provide an important channel for shaping the UK’s future trade policy in these areas on behalf of members.
Living in America
The CBI’s U.S. office participated in Liz Truss’ first international visit to Washington D.C. in early August, where she met with U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross. This followed a CBI member roundtable in London in July with the two lead negotiators on any future UK-US trade negotiation, Dan Mullaney & Tim Wedding, from the US Trade Representative’s office. Our key message on any prospective trade negotiations with the United States remains the need to prioritise our future trade relationship with the European Union (EU) and focus on trade facilitation measures that can be progressed without needing a comprehensive FTA negotiation.
The CBI will be working with members to closely analyse where progress can be made on UK-US trade, without impacting trade with the EU market. The CBI’s relationships at senior levels on both sides of the Atlantic will be vital in making members’ voices heard.
CBI makes case to new Indian Government on the ease of doing business
CBI Director of Trade & Investment Ben Digby led a member delegation from the CBI’s India Advisory Board to Bangalore this month as part of our programme with EY India on improving the ease of doing business in India. Member roundtables have been taking place across India to develop policy recommendations, with the next session scheduled in Mumbai on 24 September. If you would like to take part, or are interested in becoming a member of the CBI India Advisory Board, please contact CBI Country Director for India Shehla Hasan (insert contact details). Maybe include a couple of the benefits of joining? The group will be influential in addressing the various market access barriers in India and your insights would add weight to those efforts.
What to expect from the month ahead
CBI International Trade & Investment Council meets to set CBI’s agenda for the new government
The council, which brings c-suite representatives together three times a year to help shape our trade policy priorities, will be meeting on 5 September to guide our input to the next Strategic Trade Advisory Group (STAG) meeting held by the Department for International Trade on 10 September. We have invited Secretary of State Liz Truss MP to address the Council, following former Foreign Secretary Jeremy Hunt’s engagement with the Council earlier this year. The CBI is very well placed to allow senior figures in membership to influence the UK’s future trade policy through committees and working groups.
CBI to take part in the second meeting of the Government Strategic Trade Advisory Group (STAG)
Carolyn will participate in the second meeting of this group which is scheduled to take place on 10th September. The agenda is yet to be determined, but we expect the meeting to be chaired by new Trade Policy Minister Conor Burns MP and to clarify the group’s role in advising on future trade negotiations, particularly in relation to any negotiation with the United States. The CBI’s London and Washington offices will be working with members in the coming months to determine opportunity areas for UK-US trade. Read the CBI’s response to the Department for International Trade’s consultation on this issue.
Keeping the pace up on securing continuity of trade
The CBI will be having its first meetings with Secretary of State Liz Truss, Chief Trade Negotiations Adviser Crawford Falconer and Director-General for Trade Policy, John Alty, in the coming weeks. One of our key messages will be importance of keeping the pace up on efforts to secure continuity of trade after Brexit and doing a better job at communicating to business about changes that are likely to take place. We will also be lending our weight to practical efforts to secure the roll-over of EU agreements with EU third countries by using our extensive international network and relationships with governments around the world.
Representing the UK at the World Trade Organisation (WTO)
The CBI has a number of important engagements planned with the WTO in September and October. In September Carolyn will be meeting British Ambassador to the WTO Julian Braithwaite in preparation for CBI Chief Economist Rain Newton-Smith leading a CBI member delegation to the WTO Public Forum in October. Carolyn will also be in Geneva later in October for meetings with WTO Director-General Roberto Azevedo and a number of key ambassadors to the WTO. The CBI continues to champion the merits of the international rules-based system and supporting members to engage on the multilateral level through strong relationships in Geneva.
Setting the agenda on government consultation on trade policy
Following our success in encouraging the Department for International Trade to put in place a more formal structure for consulting business on trade through the creation of the Strategic Trade Advisory Group and network of Expert Trade Advisory Groups, we will be setting out further ideas in the coming weeks. This will be relevant to the second phase of EU talks, in whatever form that takes, and future trade negotiations with non-EU countries. Business engagement will be absolutely critical in determining the government’s negotiating objectives. We will be sharing the paper with key officials across Whitehall, including Claire Moriarty, the lead civil servant at the Department for Exiting the European Union.
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