#TradeTuesday UK Green and Good Trade principles

By The SEC Newgate Trade Team

This week, the Trade Team looks at the principles International Trade Secretary Anne-Marie Trevelyan announced earlier in the summer that underpins the UK's green trade agenda: a green industrial base, boosting green exports and liberating green trade. Given the weather the UK is experiencing this week, it seems fitting to look at the measures the government is taking to address the climate crisis regarding trade, and what initiatives are in place to help the UK lead the way on green trade.

Building the UK's Green Industrial Base: 

• The government wants to make UK businesses the vanguard of green growth and encourage green investment. 
• For example, The Global Investment Summit, which the UK hosted last year, secured £9.7 billion of foreign investment for UK offshore wind, hydrogen, and electric vehicles.
• Leading Australian businesses have also announced they will commit £28.5 billion into clean energy, technology and infrastructure projects across the UK. 
• Last year, the government launched its investment atlas to help businesses realise opportunities and funding to go green.

Boosting Green Exports: 

• The DfT estimates that by 2030, low-carbon industries could generate up to £170 billion of UK exports.
• The UK is already home to leading sustainable companies such as construction firms that have developed modern methods of construction that reduce emissions and are sharing those technologies and skills around the world. 
• UK Export Finance, the government's export credit agency, has an essential role to play in supporting companies' access to finance as they seek to boost green exports. Its Export Development Guarantee allows businesses to access high-value loan facilities to finance sustainable production and to boost crucial green exports.

Liberating Green Trade:

• Following the exit from the EU, the UK introduced the UK Global Tariff, which removed duties on more than 100 environmental goods. 
• Current FTAs being struck are centred around environmental commitments. For example, the recent FTA with Australia removes tariffs on goods which benefit the low carbon economy, including eliminating tariffs on imports of Lithium batteries.
• The UK also has a strong presence on the international stage, with esteemed British diplomat, Simon Manley recently appointed Chairman of the World Trade Organisation (WTO) Trade and Environment Committee.