In this blog, we take a look at the key points from Labour’s manifesto which should give us a good idea as to what lies ahead.

Rebuilding EU relationship

The manifesto pledges to keep the UK out of the EU, its customs union and its single market. It does, however, state that the Labour Party will “make Brexit work” by seeking to “improve the UK’s trade and investment relationship with the EU by tearing down unnecessary barriers to trade”.

An example of this is Labour’s plan to negotiate a veterinary agreement to ease border checks and secure mutual recognition of professional qualifications.

New trade agreements

Labour plans to negotiate new trade agreements, including a strategic partnership with India, covering free trade and deeper cooperation in areas like security, education, technology, and climate change​. They also intend to pursue standalone sector deals, such as for digital services, to promote UK exports​.

Defence sector

Another of Labour’s export priorities is the exploration of trade opportunities within the defence sector. To capitalise on these opportunities, Labour emphasises the importance of ensuring resilient supply chains. The manifesto states:

“We will ensure a strong defence sector and resilient supply chains, including steel, across the whole of the UK. We will establish long-term partnerships between business and government, promote innovation, and improve resilience.”

The manifesto also explicitly highlights export opportunities in the defence sector, emphasising that these must be conducted in compliance with international law:

“We will prioritise UK businesses for defence investment and will reform procurement to reduce waste. Labour will support industry to benefit from export opportunities, in line with a robust arms export regime committed to upholding international law.”

Net-zero

The Labour Party’s manifesto outlined a comprehensive plan to achieve net zero by 2050, with a major focus on making the UK a “clean energy superpower” by 2030.

A key feature of Labour’s manifesto is the establishment of Great British Energy, a new publicly-owned clean energy company designed to drive investment in renewable energy technologies. This initiative is bolstered by an £8.3 billion government investment.

Labour has set ambitious clean energy targets, aiming to “double onshore wind, triple solar power, and quadruple offshore wind by 2030.” Furthermore, they plan to invest in carbon capture and storage, hydrogen, and marine energy, which are crucial for developing the UK’s long-term energy storage infrastructure.

An essential part of this strategy is Labour’s commitment to lifting the effective ban on new onshore wind developments. By reforming planning regulations, the party aims to more than double onshore wind capacity to 35GW by 2030.

With Sir Keir Starmer’s Labour Party winning the 2024 general election, the future of international trade could see significant changes. Here at Mosaic International, we will be keeping a close eye on any developments surrounding international trade.

If you would like any help on understanding what the new Labour government could mean for your business, please contact Kiley Tan at 07885 784783 or via email at kiley.tan@mosaicint.co.uk for expert advice and support.

The post What could the new labour government mean for international trade and net zero? appeared first on Mosaic International.

But how can your business tap into this market effectively? This blog explores strategies to integrate into international supply chains, boosting your business’s reach and success.

Strengthening Trade Links

Sporting events have a unique way of uniting people from around the world. With fans travelling across Europe for Euro 2024 and other global events, there’s a significant opportunity for businesses to capitalise on this international movement.

If your business caters to sectors such as sports manufacturing, medical supplies, or food and beverage, now is the perfect time to boost your supply chain links. Establishing robust international trade connections can position your business to meet the rising demand associated with these events.

The Impact of UK Consumer Spending on Sports

Historically, major sporting events have substantially increased consumer spending in the UK. As an example, in the third quarter of 2023, UK households purchased approximately £2.2 billion pounds’ worth of sports and other outdoor recreation equipment[1]. And during the 2018 World Cup, UK consumers spent £1.9 billion.

While we can’t predict exact figures for Euro 2024, it’s reasonable to expect a significant boost in spending, particularly if England advances to the later stages. Businesses should prepare to meet this surge in demand which could potentially increase their revenue by millions.

International Trading –  A Strategic Advantage: Sourcing Products Beyond the EU

Southeast Asia presents numerous trading benefits for UK businesses, including a skilled workforce, lower labour costs, and established trading routes. The region also offers a wide range of suppliers who are eager to engage with UK markets.

To ensure quality and standards, it’s crucial to implement a thorough and reliable audit process. Engaging local auditors who specialise in specific areas or conducting comprehensive supplier audits can help maintain high standards and efficiency.

The Benefits of a Strong Supply Chain

With Euro 2024 on the horizon, now is the time to evaluate and strengthen your supply chain. Conducting a detailed supply chain audit with on-the-ground specialists ensures compliance, reduces risks, and enhances performance.

A robust supply chain leads to cost reductions and increased profitability, positioning your business to thrive during and after the event.

Get in Touch

For more information on optimising your supply chain, visit the supplier auditing section of our website. Contact Kiley Tan at 07885 784783 or via email at kiley.tan@mosaicint.co.uk for expert advice and support.

[1] Statistia, 2024

The post Harness the Excitement of EURO 2024 for Business Growth appeared first on Mosaic International.

New HMRC declaration system for exporters from 30th March

Any trader making export declarations needs to move to a new HMRC system from March 30 this year. The CHIEF system is being fully replaced by the Customs Declaration System, and anyone who has been using the old system will now have to move across.

There has been a transition period from the old to the new system, but it ends on this date. You will need your Government Gateway ID to subscribe to the system, plus:

• Your EORI number that starts with GB or XI — if you do not have one you can apply for an EORI number when you subscribe — you’ll need to meet the eligibility criteria to register for an XI number.
• Your Unique Taxpayer Reference (UTR)
• The address for your business that’s held on customs records.
• Your National Insurance number (if you’re an individual or sole trader).
• The date you started your business.

What happens once I’ve subscribed to the new system?

Once you have subscribed to the new system, you will either gain access within two hours, if HMRC doesn’t need to make any additional checks, or five days if it does. It is best to give yourself plenty of time in case your access is delayed, so you don’t find yourself needing to move goods but not having access to the right paperwork.

If you have already subscribed to the new system for either imports or exports, you don’t need to sign up again.

UK Export Finance doubles limit to £10m for traders

Small businesses looking to access funding to expand their exporting opportunities can now fast-track their applications with UK Export Finance, the Government’s export credit agency, and apply for twice the previous amount. The limit available now is £10m.

The move makes it “easier than ever” to sell into international markets, according to the Government, as the UKEF has now expanded its ‘auto-inclusion’ scheme which offers fast-track access to products such as the General Export Facility.

The payment terms have also increased from two to five years under the scheme, which increases the repayment flexibility available to small businesses too.

How does a business access this funding?

To access this funding, a business would need to speak to a participating bank, but the auto-inclusion removes the need for a manual intervention by UKEF, so the funding should be accessible quickly.

If you’d like to know more about these changes to exporting and how we can help you navigate your exporting journey, contact Mosaic International today!

The post Export market update appeared first on Mosaic International.

In our latest blog, we take a look at how travel disruption can affect a supply chain, and why having a plan B is just as important as your plan A.

Servicing your customers and completing orders if your supply chain breaks down

With the current issues facing air travel in the UK at present, there will be no surprise that the delays and cancellations in flights are not only affecting those wanting to take a vacation abroad, but also businesses who rely on air travel for trade.

Since the pandemic, airline companies laid off 400,000 members of staff worldwide, but now the demand for international travel is getting back to normal again, airlines are becoming overwhelmed due to a lack of human resource. This lack of planning has meant that in the UK alone there have been over 900 flight cancellations since May.

There are, of course, other modes of transport, such as shipping, but as we saw with the Ever Given and the Suez Canal in 2021, unexpected problems can arise without warning whatever your preferred mode of transport.

Do you have a back-up if a supply problem arises?

As well as supply chain disruptions caused by travel delays, those who travel abroad for business to make links with customers, make deals, and check on how companies are progressing in other countries a lack of physical presence can also cause issues.

In the physical supply chain, there are options with an on the ground supplier audit service. For example, can you service your customers and complete orders if your supply chain breaks down?

The issues we are facing now with travel disruptions could mean that your product either won’t get where you need it or will be delayed to the point where it is damaging to your business.

Do you have a plan B or a backup supplier in another country if this happens?

If you do, that’s great! But you will need to think about whether your plan B supplier can give you the same amount of quality, and cost-effective product as supplier A. If you do not have a backup supplier, now is the time to source one – and we can help.

Supplier Auditing

At Mosaic International we have an ‘on the ground’ supplier audit service, that is physically based in the local territory of your supplier.

Having a locally based supplier auditor offers major advantages; they can immediately respond to changing circumstances, such as transport blockages and delays, but one of the biggest advantages is they understand the local culture.

This gives our clients a major competitive advantage. Those businesses that have been dealing with this region for some time will know how different working practices are abroad compared to the UK.

Looking at new markets

Global purchasing is on the increase and the Pacific Rim is going to be on most importers list. Here at Mosaic International we can help your business develop in Southeast Asian markets.

We can support you in starting the process of determining which part of the region your products could enter, who your suppliers should be and how to exploit these opportunities.

The reality is this is a medium to long term project – and if you don’t start, you’ll never reap the benefits. While it is never too late, it is also equally true that it is never too early to start!

For more information about our localised supply chain, visit the supplier auditing section of our website or contact Kiley Tan on 07885 784783 or kiley.tan@mosaicint.co.uk for more info.

The post Supply Chain Issues – Do you have a back-up plan if problems arise? appeared first on Mosaic International.

After the referendum vote to leave the EU in 2016 was cast, a new word was coined into our vocabulary, ‘Brexit.’ And although it wasn’t until January 2020 that the UK officially left the EU, our government is now ready to join a club that has around 500 million people in it, has a combined GDP of $13.5 trillion, and generates more than 13% of the world’s income.

So, what is this illusive club? The ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership’ or CPTPP as it is more commonly known, and it is a free trade agreement (FTA) between 11 countries around the Asia-Pacific region. The UK is on a fast track to join and become the first non-founding country to do so.

Who are the current members and what advantages are there to the UK joining?

The key members are Canada, Japan, Malaysia, and Australia but also countries like Vietnam with whom the UK expects to supply digital technology such as 5G and smart cities. In fact, as part of the drive to help UK technology businesses develop trading relationships with the region, the UK government has allocated £8m to launch the Digital Trade Network.

As with all trade agreements, it’s about reducing or eliminating barriers to trading with each other. That includes tariffs and import charges, however, unlike the EU, the CPTTP is not a single market and therefore trading partners can impose their own standards and protect certain domestic products such as Japan’s rice and Canada’s dairy industry.

Why is the UK involved when it’s not an Asian-Pacific country?

As a former member of the EU the UK has retained FTAs with many of the CPTPP members and is currently negotiating with Malaysia and Brunei while agreements in principle have been reached with Australia and New Zealand in June and October 2021, respectively.

According to the UK government, we want to be known as the European country with the most complementary trading relationships around the region. They also say that the UK has created more technology entrepreneurs outside of the US, China, and India.

This is one of the reasons why they are creating initiatives such as the Digital Trade Network, supporting local businesses who are looking to develop trading partnerships in the Asia-Pacific region.

What are the advantages of belonging to the CPTTP?

The main advantage for the UK is that it gives UK businesses a springboard into the Indo-Pacific economic powerhouse.

With no, or lower duties, and easier cross border clearance, CPTTP gives UK businesses access to new markets. This is good news as the region’s strength as part of the world’s supply chain would allow UK businesses to find high quality supplies at competitive prices and lower trade barriers. And these trade barriers would also translate to UK sales into the region.

Are there any other advantages of the UK being a member?

In addition to support for UK businesses, CPTPP countries will have the same opportunities as domestic businesses when investing in local projects. Given that in 2017, its members accounted for £1 in every £12 of foreign investment in the UK, we expect cross-border investments to continue to grow.

Anything else?

The UK government says that being a part of a dynamic, fast-growing region, with easier trading agreements, will provide potential for future economic growth. This is especially relevant for countries such as Malaysia and Brunei that, so far, do not have an FTA with the UK. There are also the distinct possibility that other economically buoyant countries such as South Korea and the Philippines will join.

What about USA?

Trump withdrew the US agreement to join when elected in 2016 and President Biden, while initially being warm to the idea, has now said it’s on hold for the time being. Should the US change its mind, then this could potentially open a back door trade deal between our two countries. This would then mean that the enlarged CPTTP would account for more than 40% of global GDP – a major force in world trading.

What does membership mean for UK businesses?

As we’ve been saying for some time, this region offers many trading advantages for UK businesses. Malaysia, for example already has a well-established trading route with the UK as well as a strong willingness to do business with us.

At present, the UK does not have an FTA with the country, but would have as a member of the CTPPT, thus increases the opportunities for local businesses. It’s a growing market with low labour costs, highly skilled workforce, and a diverse range of suppliers.

For UK companies looking to source goods or establish a supply chain partner there, the outlook certainly appears promising.

Global purchasing is on the increase and the Pacific Rim is going to be on most importers list. The challenge for local businesses, especially under the current Covid restrictions, is how to ensure supply reliability, consistent product quality and a trouble-free smooth delivery.

This is where Mosaic International can help. We can help you start the process of determining which part of the region your products could enter, who your suppliers should be and how to exploit these opportunities. The reality is this is a medium to long term project – and if you don’t start, you’ll never reap the benefits – as they say: while it is never too late, it is also equally true that it is never too early to start!

If you have suppliers, but you are struggling to carry out audit inspections, we offer a physical supply chain auditor that is ‘on the ground’ in the local territory. We already have an established service in Malaysia, and this will only be expanded throughout the CPTTP region in due course.

For more information about our localised supply chain, visit the supplier auditing pages of our website or contact Kiley Tan on 07885 784783 or kiley.tan@mosaicint.co.uk

The post Life after Brexit? Yes, in the CPTPP appeared first on Mosaic International.