Institute of Export & International Trade Newsletter

In this issue

Foreword

Editorial

- What to expect from in 2020

IOE&IT News

- 4 new appointments to the Board of Trustee Directors

International Trade News

- New report reveals UK exporting wind and marine energy to 37 countries

- Financial & political uncertainty takes its toll on global trade

- Experts encourage greener shipping

- International investment took a hit in 2018, but global trade remained steady

- ‘Europe’s man on the moon moment’ - European Green Deal

- Trade groups in the US try to revert export December 2019 restrictions

Foreword

Heading into a new decade, it feels like a is well overdue. We are at a place of political uncertainty, financial losses and gains in the stock markets amongst other factors. Whilst we are all waiting for decisions to be made by the powers that be, this inbetween stage needn't be wasted time.

With the Government's help on offering grants for businesses to learn to export alongside Brexit, make sure that you are using this time to learn, reflect on your processes and optimise your international relationships. Let this be an insightful time, where business come back stronger and more knowledgeable.

Here at the Institute, we are all too aware of the risks that lack of knowledge and communication can have on businesses and ultimately on our economy, our job is to make sure no business will trade unsupported or without the relevant information and training they need.

From learning the basics on exporting to operational courses on customs procedures and documentation to bachelor’s degrees in international trade and world customs compliance, we offer education for all. This would include whether you are a small business looking to trade outside of the UK for the first time to a global corporation looking to refresh their practices and bring all their staff up to date with current legislations.

With so much set to happen in 2020 it's impossible not to feel excited with what the future has in store. Even if politicians don't always please us all, we have so much planned for the year, we have our first World Trade Summit in 2020 hosted in Manchester to look forward to, where industry experts come together to offer their insight into the past and future of exports, share experiences, knowledge and overall a great place to network and most importantly, ask questions!

If Manchester is too out of the way for you, we will also be hosting it in London towards the latter part of 2020. Please enquire with the Institute for more information.

I hope this newsletter helps you to understand how the future of exports are being shaped. You'll find some high and some lows. How trade wars are still impacting global economic development. How advancements in environmentally friendly methods of transport are set to cause a change in logistics and dividing opinions along the way.

But lastly, the team here at the Institute would like to wish you a happy Christmas with a very successful 2020 ahead of you.

Speak soon,

2020 training dates now available

Our training calendar for 2020 is now live and available to book via our website.

The Institute offers a range of one-day training courses, designed to give you the skills and expertise you need to gain a competitive advantage in the challenging and complex world of export, import and international trade. View all courses Government, and will likely vote However, unlike his predecessor What to Expect through the Withdrawal Agreement , Johnson is now in a Bill in early January. position of strength, boasting his from Brexit from significant majority which will give 2020 The country will then enter a him some leeway in relation to transition period with the EU, in factions within his party like the

which all existing EU rules remain in European Research Group. The size of the Conservative place, until the end of December majority earned in ’s 2020. During this transition period He will initially need to pass his general election win is extremely the UK will be negotiating its future negotiating objectives through significant for UK politics, but what trade relationship with the EU. Parliament, which will be the first will it mean for Brexit and the UK’s test of how strong a grip he has on future relationship with the EU? Businesses should also note the his party. Despite party unity on the

January 31st deadline to apply for need to do Brexit, unity on how The winter election of 2019 will grant funding towards training that close the UK should remain to the undoubtedly be looked back on as a gives you the Customs skills you will EU in terms of standards and turning point in terms of the UK’s need in a post-Brexit Britain. regulations remains to be seen. trading relations with the EU and the rest of the world and businesses An extension to this deadline is not According to Joe Mayes, the Brexit now really do need to properly out of the realms of possibility and correspondent for Bloomberg: prepare for Brexit – it’s going to we will update our members on any happen. updates to this, but we do advise “The contradiction Johnson will have you to apply now for this funding, as to resolve in the trade deal is his whether it is extended or not, it is desire for both autonomy from EU now almost certain that you’ll need rules and access to the single this training to ensure a smooth market. The EU has indicated it is continuation of trade into the EU for willing to give Britain a zero-tariff, the years ahead. zero-quota deal -- on condition the U.K. doesn’t become a lightly- regulated Singapore-on-Thames. The UK is now going to leave the EU Spring 2020: Initial on January 31st, initiating a “The EU is also likely to take a tough transition period in which the terms Negotiations line on key priorities for big member of the future trade relationship are The UK and EU will then finally begin states like France and Spain. Expect to be negotiated. to negotiate the terms of its future to hear more on access to fishing trading relationship. Given the waters and the , However, uncertainty does remain tensions and gridlock caused by the the tiny British territory to which as to the nature of the UK’s future negotiations for the UK’s withdrawal Madrid lays claim. relationship and the length of the from the EU, you should probably upcoming transition period. brace yourself for much more debate and anxiety as trade Here are some key moments for us relations are notoriously arduous to all to either look forward to or brace negotiate. Most trade deals take ourselves for over the coming year… multiple years and Johnson’s government is tasked with January 2020: Passing negotiating its most important trade deal with its current closest trading the Withdrawal partner within a year. Agreement Bill “If Johnson wants access to the bloc’s single market, he will have to A much-changed Parliament returns give up control in some areas -- in on December 17th, with all of the particular taxation, labour and 365 sitting Conservatives having environmental standards. Hard- pledged to vote through Johnson’s liners in his party are likely to object Withdrawal Agreement Bill. They to that, and push for a clean break will first vote through the Prime at the end of the year. Minister’s Queen's Speech, setting out the agenda of the Conservative “But a big majority could allow him to marginalize them and cut a deal that keeps the U.K. more closely January 2021: Done Deal aligned with the EU.” Brexit? January 1st 2021 could be the start July 2020: Decision on of a new era, should a deal be agreed or ratified. extending the Transition

A decision on whether an extension Alternatively, it could mark the The major result of the election is needs to be made to the transition introduction of WTO rules as the that Brexit will almost certainly period must be made by July 1st. UK’s basis for trade with the EU, or happen, so things will change. As Throughout the campaign the we could still be a period of months such, the need for British businesses Conservative leadership has made it or years away from Brexit should an to prepare for a changed trading clear that it would not seek an extension be made to the transition. situation is now paramount. extension, such was the conviction of its ‘’ motto. The government grants for training A Year of Greater in key Customs processes, such as However, should the negotiations be Certainty Ahead? completing Customs Declarations, fraught with debate and already provide a fantastic disagreements – as trade A potential benefit of such a strong opportunity for businesses to gain negotiations often are – an government is that there should be the trade skills that will be essential extension may suit both sides, and greater certainty for businesses, in the years to come. the EU has already indicated that it allowing for better planning and is strongly considering one. increased confidence. We probably The deadline to apply for these won’t be as embroiled in grants is currently January 31st so Again, Johnson’s strong majority in parliamentary process as we have we really suggest that you prioritise Parliament may allow him to pass an been throughout 2019, in which applying for them either before or extension despite hard-line we’ve had a minority government straight after the Christmas break. opposition within his party, and he hamstrung by division within its would have plenty of time in this party. We will continue to update parliamentary term to withstand any members on this grant funding, and voter backlash to another delay on The major uncertainty of the year we will be providing training courses Brexit. will likely centre on whether an that will enable you to plan for post extension will be made to the Brexit Brexit throughout the year. If the UK declines the extension, it deadline, but even if it isn’t, will then be left with six months to businesses will have six months to scramble for a deal or we will all be prepare for a pretty clear either-or bracing ourselves for a repeat of the situation of last-minute deal versus ‘No Deal Brexit’ deadline saga at the WTO rules. end of the year.

Caroline Gumble is Chief Executive of the Chartered 4 New appointments to the Institute of Building and has extensive business leadership experience, gained in the UK and overseas, Board of Trustee Directors within the Automotive and Capital goods sectors working with Lucas Industries, Ransomes Sims & The Institute of Export & International Trade is Jefferies and Textron Inc, as well as Membership delighted to announce 4 new additions to its Board of organisation leadership experience within EEF Ltd / Trustee Directors ahead of a vital year for the UK Make UK. trade. Sangeeta Khorana is Professor of Economics at Sandy Gullis MBE, MIEx (Grad), Caroline Gumble MIEx, Bournemouth University in the United Kingdom. She Sangeeta Khorana MIEx and Allen Matty MBE MIEx has a PhD. in International Economics from the have been appointed to the Board and will work University of St. Gallen in Switzerland and a summa under the Chairman, Terry Scuoler MBE, in directing cum laude Masters’ degree in International Law and the Institute as it looks to support UK businesses Economics from the World Trade Institute in Berne, through the challenging years ahead. Switzerland.

The new look board will be working closely with the Allen Matty has been involved with overseas sales and Institute’s new Director General, Marco Forgione, operations in the petrochemical and engineering who will be taking up his role in January 2020. sectors in the UK, Scandinavian and Middle Eastern markets. He is also experienced in managing public Sandy Gullis returns to the board having previously sector service delivery contracts where, as Managing served on it between 2014 and 2017. Sandy left the Director at West Midlands Chambers of Commerce Army in 1999 and in the intervening years has worked LLP since 2010, he has been responsible for the for BOC Transhield moving food for Marks and delivery of the Department for International Trade Spencer’s, Honda Manufacturing providing ‘Just In (DIT) services in the West Midlands, where he Time’ logistics to the Swindon Factory. Additionally, manages a team of 35 International Trade Advisers he worked for Kellogg Brown and Root undertaking and 8 support staff. MoD contracts around the world, including operational areas of Iraq and Afghanistan, before You can read more about the Sandy, Caroline, moving on to be General Manager of the Wincanton Sangeeta, Allen and the rest of the Board here: site in Bicester. He now works for Essentra https://www.export.org.uk/page/The_Board Components as a Supply Chain Project Manager.

International Trade News

New report reveals UK Germany is the most popular destination, followed in order by exporting wind and Taiwan, Denmark, the Financial & political marine energy to 37 Netherland and the USA. uncertainty takes its countries The report also notes that, despite of the Government’s toll on global trade policies hindering onshore wind development domestically, the New data from the OECD shows UK is exporting onshore wind that EU growth is contracting, as products and services to 23 Brexit and US-China trade countries. Similarly, while tensions take their toll. Government policy does not support the development of According to the new report wave and tidal energy, we are released by OECD, exports from the EU contracted 1.8% in the A report published today by still exporting marine energy 3rd quarter compared to the RenewableUK shows that UK- products and expertise to 12 previous quarter whilst imports based onshore and offshore countries. dropped by 0.4%. Even though all wind, wave and tidal energy EU major economies were companies are now exporting The survey reveals that the range affected, Italy has been one of their products and services to 37 of exports from the UK’s wind the worst hit with a drop in trade countries across 6 continents. and marine is extraordinarily for the last consecutive 6 wide. UK firms are designing, quarters. Using an illustrative sample of building and maintaining wind companies involved in the sector, farms onshore and offshore, as Imports from G20 countries, “Export Nation” reveals that 47 well as wave and tidal projects. which account for 85% of world UK firms signed 465 contracts output, have also dropped 0.9%. worth up to £53m per company Exports from our domestic Laurence Boone, OECD chief in the past year, working on supply chain include economist, warned that high hundreds of projects in Europe, manufacturing blades, supplying levels of uncertainty on trade Asia, North and South America, and installing UK-made power policy and geopolitics had Africa and Australia. cables on land and underwater, resulted in stagnating global fabricating specialist steelwork, trade, which is dragging down Overall, UK exports of wind providing helicopters and crew economic activity in almost all energy products and services are transfer vessels, producing major economies. worth £525m a year, according software to maximise power to the Office for National generation, conducting The decrease in exports across Statistics. The new report reveals geological surveys, monitoring the world is being held that current top ten export wildlife and providing legal and responsible for lower oil prices as destinations for UK wind and financial services. well as the depreciation in other marine energy companies are, in major currencies against the order of importance, Germany, If you'd like to download the dollar. Taiwan, Denmark, the USA, the report, please click here

Netherlands, France, Belgium, EU countries are heavily reliant China, Ireland and South Korea. Click here for more information on trade, explaining the on the article significant dip in figures in the Nearly 70% of the contracts were EU. For example, in Germany, in the offshore wind sector. The trade is equivalent to 87% of companies featured in the report gross domestic product, won offshore wind contracts in compared with 27% for the US. 15 countries across 4 continents.

Timme Spakman, an economist improvement in the trade picture by International Maritime at ING, said: looks fragile and limited.” Organisation will see the limit reduced to 0.5% m/m. “European merchandise trade You can read the full OECD has been impacted significantly report here: Source: by uncertainty surrounding the http://www.oecd.org/sdd/its/Int https://www.shropshirestar.com trade war and Brexit,” ernational-trade-statistics-Q3- /news/business/2019/12/10/inte 2019.pdf rnational-trade-expert- He added: “the slowdown of welcomes-action-for-greener- German industry had an impact shipping/ on European trade, as German producers ran down inventories Experts rather than importing new encourage intermediates”. International greener shipping investment took a Surveys being published are also showing that more than 70% of hit in 2018, but EU & US businesses have mentioned uncertainty is a big global trade factor for them not to invest. remained steady Brexit uncertainty has also impacted UK exports negatively as well as causing the value of the sterling to fall against the As pressures increase for dollar. businesses to operate in a

'greener' environment, efforts Looking more further afield, are being made by the when we asked Ana Boata, lead One of the big factors that has International Maritime Eurozone and UK economist at contributed to a decline in Organisation to help with this. Euler Hermes if there are any foreign direct investment, has positive signals beyond the been US tax policy changes From 1st January 2020 new established trading nations, she prompting repatriation of stricter regulations are being told us: earnings held abroad, a introduced regarding sulphur "The major drivers are the US- legislation introduced in 2017. emissions released from ships. China trade dispute and the monetary reaction, but we also Adding to this, there has been a Telford-based Global Freight hear alarm bells ringing in the decrease in US imports from Services Ltd has welcomed the emerging markets, particularly China, even before the trade action which aims to make Argentina, Turkey and South conflict between the two exporting by sea a much greener Africa. China slowing down nations. This is being seen as practice, however it says the quicker than expected definitely 'stablising rather than shrinking move is likely to force up the cost has an impact – especially on relative to the size of the US of shipping goods. South East Asia markets – but economy'. there’s also oil prices.' “One of the biggest ways to bring “Policy easing in the US, China “While current geopolitical costs down is to increase the size and the eurozone is not yet tensions could seriously disrupt of shipments and reduce the feeding through so all remain a global connectedness, this 2019 frequency of consignments. This drag on trade growth.” said update finds that most will not only have cost benefits Adam Slater, lead economist at international flows have but is also much better for the Oxford Economics. remained surprisingly resilient so environment too.” GFS's far,” said John Pearson, chief Managing director Anton Gunter "While there are some signs of executive of DHL Express. said. stabilisation in forward-looking sentiment indicators, the picture Steven Altman, senior research The current limit for sulphur in for the near future remains scholar at NYU Stern School of fuel oil sits at 3.5% m/m whilst gloomy." Mr Slater added: Any Business and lead author of GCI the new regulations introduced declined claims of a shift towards regionalisation. 'Our analysis have on a global scale, business does not confirm a robust hope for clarity & guidance going Even though the release of the regionalisation trend. Instead, we into the new decade. deal has been met with a positive see that the average distance sentiment overall, some member across which countries trade has Source: states have shared that they will held steady since 2012' https://theloadstar.com/global- not be able to commit to the trade-flowing-nicely-but- target until they can secure The GCI also remarked on international-investment-is- billions of euros in financial aid to discrepancy between perception sticky/ make the transition. €100 billion and reality in regard to global has been held back by the EU to connectedness. Mr Altman assist with this. shared that exports actual share ‘Europe’s man on of GDP worldwide worldwide Another stumbling block for the stood at 21% for trade, 6% for the moon EU commission has been France, capital flows, 7% for information UK & some eastern members flows and 3% for people moment’ - claiming they couldn't support movement, as opposed to the deal if nuclear energy wasn't estimates of, respectively, 41%, European Green given a clear green light. 38%, 36% and 30%. Deal Paul Tang, a Dutch centre-left This decline doesn't seem to be MEP, said it was “shocking that showing any signs of slowing on the same day the Green New down with forecast for 2020 Deal is presented, the suggesting that trade is on track compromise on a sustainable for a small decrease. standard for investment is refused. Emmanuel Macron The disputes between US & Described as 'Europe's man on wants to be champion of China are being held partially the moon moment', the new sustainable finance but also responsible for the decreases green deal released by the EU wants to let nuclear contaminate happening in global trade with will aim to make Europe the the standard”, he said. 66% of participants in a survey world's first carbon-neutral reporting that they had been continent by 2050. Policies part of the plan include impacted by the disruptions and taxation to discourage operational challenges brought Published on Wednesday 12th unnecessary carbon emissions by the two nations. December 2019, the such as jet fuel in the aviation environmental initiative included industry. This has been met with 50 policies to be rolled out over some resistance from EU the next 3 years. members that see taxation as a national power not something to “Our goal is to reconcile the be imposed by the EU. economy with our planet. The old growth model that is based Running alongside the green on fossil fuels and pollution is out deal, Brussels wants to be able to The resolution doesn't seem to of date and out of touch with our reserve the right to impose fines be around the corner anytime planet. It will be a long and to outside nations that pose a soon, with Washington showing bumpy road. But we are threat to EU members by trying very little willpower to co- determined to succeed”. said Ms to gain an unfair competitive operate with Chinese/US von der Leyen on Wednesday, advantage without following negotiators. President Trump the newly elected President of climate initiatives. said on 3rd December that a the European Commission. decision might be on hold until Source: next year's presidential elections. https://www.ft.com/content/913 c15ce-1c1e-11ea-97df- Authoritive bodies within the cc63de1d73f4 international trade industry have all stressed the negative impact that uncertainty & volatility could

involving items that are not Trade groups in sensitive for any national security The trade groups are coming reason.” together and asking the the US try to Department of Commerce to revert export Trade associations have warned consider stakeholder input 'Creating a special rule for one before changing the existing de restrictions set of targeted entities sets a minimis and foreign direct dangerous precedent for future product rules. rules, while also increasing the compliance risk for U.S. Trade groups that have signed exporters, big and small.’ the letter to Commerce Secretary Wilbur Ross: Both proposed changes undermine the administration’s - BSA/The Software Alliance,

national security objectives to - Computing Technology Following the dispute between promote American prosperity Industry Association Huawei & US, the Trump and preserve our nation’s lead in - Information Technology administration is considering research, technology inventions Industry Council significant changes to the Export and innovations,” they said. - IPC Administration Regulations - National Association of (AER). When interviewed by The Globe Manufacturers

and Mail newspaper, Huawei - National Foreign Trade Council The Department of Commerce Founder, Ren Zhengfei, said the - SEMI heading up these changes are company is planning to move - Semiconductor Industry lowering the threshold of US their California offices to Canada. Association origin controlled content in - Software & Information products, from 25% to 10%. The “According to the U.S. ban, we Industry Association and regulations that have been in couldn’t communicate with, call, - U.S. Council for International place for 30 years have agreed email or contact our own Business that if an export has 25% or less employees in the United States,” of US content, it will not be he told the newspaper. Source: https://www- subject to EAR and therefore not freightwaves- require an export license. com.cdn.ampproject.org/c/s/ww

w.freightwaves.com/news/us- “The proposed rules under exporters-attempt-to-head-off- consideration could negatively new-content-restrictions/amp impact a wide range of commercial transactions

Forthcoming training courses

No matter what level you are at, our courses will give you the skills and expertise you need to gain a competitive advantage in the challenging and complex world of international trade.

08/01/2020 Step by Step guidance on completing Customs Declarations – London

14/01/2020 Customs Classification and Tariff Codes – London

15/01/2020 Introduction to Exporting – Manchester

15/01/2020 Customs Procedures and Documentation – London

16/01/2020 Advanced Exporting – Manchester

16/01/2020 Post Brexit Documentation and Compliance - London

20/01/2020 Incoterms 2020 – Birmingham

22/01/2020 Introduction to Importing – London

See our full training calendar at www.export.org.uk/coursecalendar

2020 training dates now available...

Our training calendar for 2020 is now live and available to book via our website.

The Institute offers a range of one-day training courses, designed to give you the skills and expertise you need to gain a competitive advantage in the challenging and complex world of export, import and international trade.

Our suite of training courses includes:

• Step by Step guidance on completing Customs Declarations • Customs Procedures and Documentation • Customs Classification and Tariff Codes • Understanding Rules of Origin, Free Trade Agreement and Export Preference • Introduction to Exporting • Introduction to Importing • Advanced Exporting • Advanced Importing • Post Brexit Planning Workshop • Post Brexit Documentation and Compliance

Don’t forget that HMRC training grants are still available – you can get 100% of the cost of training for your employees covered by the grant, up to a limit of £2,250 per person.

View the full range of courses

The UK Customs Academy has been developed at the request of HM Revenue and Customs (HMRC) to support the development of a robust and sustainable customs intermediaries sector of the future, through investing in quality training and learning, up-skilling more people and making learning opportunities more flexible and accessible to all.

To this end, the UK Customs Academy has been developed by KGH Customs Services UK in collaboration with the Institute of Export & International Trade and the Centre for Customs & Excise Studies. It has been made possible through Treasury and HMRC investment in training provision in this area.

Level 2 Customs Practice & Procedure Award – now available

Level 3 Certificate in Customs Compliance – now available

Level 4 Certificate in Advanced Customs Compliance – now available

Level 5 Diploma in Advanced Customs Compliance – now available

All of the courses are delivered online, with additional tutor support for Level 4 and 5 students.

Students of the Level 3, 4 and 5 courses will also receive FREE access to the UCC Navigator and Declaration Assistant Tools.

You can claim government grant funding to cover the full cost of the Level 2 – Level 5 qualifications. Find out more

www.UKCustomsAcademy.co.uk

2020 Webinar Programme

The programme is not fixed and is subject to change. Dates will be announced in due course and registration opened to each session a month before it is due to take place.

January 22nd: What you need to know about Brexit in 2020 – register now

February: Export Controls and Licences

February: Moving people over borders

March 5th: Getting your goods on a boat

March 19th: International IP, Copyrights, Trademarks and Patents

April: Making sure you’re covered – what insurance options exporters need to consider

May: Reaching customers overseas – SEO, Social Media and Translation

June: Beyond the EU: Middle East

June: Beyond the EU: Russia and CIS states

July: Beyond the EU: South Korea

July: Career opportunities in Global Trade

August: Inspiring Exporters – export tips from winners of The Queen’s Awards

September: Brexit – where are we now?

October: Trade Association Series

November: Free Trade Agreements – what you’ll need to know

December: Planning for 2021