International News Trade Update 19.04.24

Date: 19th April 2024 Category: Latest News
International News Trade Update 19.04.24

UK Free Trade Agreements

Talks with Turkey

On the 14th March, the UK initiated discussions with Turkey to establish a new, modernised trade agreement focusing on the services sector, to benefit businesses nationwide.

Turkey offers vast opportunities as one of the OECD's fastest-growing economies, with a population of 85 million. The economic relationship between the UK and Turkey is already strong, with trade reaching nearly £26 billion in 2022. Turkey's market presents substantial prospects for British businesses, driven by the country's decarbonisation initiatives and heavy investment in rail.

The upcoming trade deal will replace the existing one, which was primarily negotiated in the 1990s. The new agreement will emphasise the UK's expertise in services, which account for 80% of its GDP.

Trade pact with Texas

A trade pact with the USA's second-biggest state was signed on 13th March to boost trade and investment ties between the UK and Texas.

Texas boasts the second-largest state economy in the USA, with a GDP of £1.9 trillion in 2022, making this the UK's most impactful trade deal with a US state thus far. The UK ranks as Texas' 8th largest international market for goods exports, with a total trade value of £14.7 billion in 2023. The agreement seeks to simplify and reduce the cost of doing business for UK and Texas companies by addressing trade obstacles, increasing investment, and fostering commercial growth between the two regions.

Import changes

From 30th April 2024, new processes will be introduced when importing and exporting Food, Animal Products, Plants and Plant Products to and from the UK. These include physical checks of imports from the EU of certain sanitary and phytosanitary (SPS) goods and the Common User Charge that will apply to imports entering Great Britain through the Port of Dover and Eurotunnel.

Rates and Eligibility

The common user charge will be introduced on 30th April 2024 for commercial movements of certain products through the Port of Dover and Eurotunnel. This charge applies to imports entering Great Britain and transits entering and leaving Great Britain from all countries.

via Essex Chambers