The government’s “bounce back” plan to boost and food and drink exports, announced today, is a vital step in improving businesses’ resilience against future economic shocks, according to trade minister Graham Stuart.
The initiative aims to “turbocharge” exports to global markets including Japan, US, Australia and New Zealand, with whom the UK is currently negotiating trade agreements.
It is intended to help food and drink companies recover from the devastating effects of the coronavirus pandemic, which saw food and drink exports fall 12.7% year on year in the first quarter of 2020 against the same period last year.
The announcement was welcomed across industry. However, the Food & Drink Exporters Association insisted that reaching a deal with the EU – which accounts for more than 60% of food and drink exports – was still the “highest priority”.
Businesses increasingly fear that exports to Europe will suffer if the EU introduces full customs and regulatory checks from January, as warned by European officials.
But trade minister Graham Stuart said that while the government was prioritising the best possible deal with the EU, it must also look to maximise opportunities in the rest of the world
“Having a wider range of markets available to you and with who you’re engaged makes you better able to respond to something like a pandemic or any other shock that comes along,” said Stuart.
Defra and the Department for International Trade are spearheading the new package, which will support British businesses to promote their goods in international markets, identify growth opportunities and strengthen existing relationships.
New measures include export masterclass webinars, an overseas virtual buyer trial, and a ‘Smart Distance Selling Process’ to send samples to buyers.
The plans would help businesses capitalise on new trade agreements, said Stuart. “The measures aim to ensure that companies can take the greatest advantage of the market access success that we’re delivering, whether that is through FTAs or through ever more intensive market access work in places like Brazil and Malaysia.”
However, hopes that a US deal would be completed by the end of the year are now fading after US trade representative Robert Lighthizer said last week that a UK-US trade deal would be “almost impossible” before the 2020 election in November.
The plans will also introduce the first agri-food counsellor for the Gulf to support British food and drink business looking to export to the region.
The UK secured a relaxation of Arabic labelling requirements on imported foods during the initial months of the pandemic, which many hope the government can now build upon.
“The government should really try to help address some of the regulatory barriers of getting food in,” said Sean Ramsden, CEO of Ramsden International and a member of DIT’s strategic trade advisory group.
FDF CEO Ian Wright said: “Our success in restarting and expanding exports will be absolutely vital in aiding the UK’s post-Covid economic recovery.
“The ‘bounce back’ plan will ensure that specialist support is available to those UK businesses which trade around the world and provides fantastic potential for those companies looking to export.”
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