Input to Support DBT’s Trade Strategy Development from Composites UK

Composites UK has provided crucial insights into the consultation to shape the Department for Business and Trade’s (DBT) trade strategy. A trade strategy was promised by the Labour administration when it assumed government in July; in October Rachel Reeves and DBT secretary Jonathan Reynolds revealed the industrial strategy green paper which was to align with the upcoming trade strategy as part of an overall ‘joined-up’ approach to economic growth.

Key points from Composites UK’s input to the strategy development are below:

Facilitating Trade and Reducing Regulatory Burdens
Composites UK stressed the need to alleviate administrative pressures caused by the UK’s independent REACH regulations post-Brexit. Dual-registration under UK and EU REACH has created significant challenges. A mutual recognition agreement, data-sharing protocols, streamlined processes, and a long-term regulatory roadmap could mitigate these issues, enhancing the UK’s attractiveness as a manufacturing hub.

Export finance requires attention too. Current high interest rates make export finance less appealing, particularly for SMEs. Reducing costs and broadening access could stimulate trade. Additionally, strategically applying import tariffs to support emerging low-carbon supply chains could boost domestic manufacturing.

Aligning Carbon Border Adjustment Mechanism (CBAM) with Global Practices
Future CBAM policies should align with international standards to prevent supply chain disruptions. Composites UK warns against implementing overly onerous data requirements that could deter international suppliers, leading to higher costs and reduced competitiveness for UK manufacturers.

Building International Partnerships
Strengthening ties with the EU and clarifying US trade relations are vital. Renewed negotiations with the EU could simplify trade, while clarity on US tariffs would help UK firms plan investments.

Reinvigorating Trade Support and Updating Export Controls
Composites UK advocates for reversing cuts in trade support, including funding for trade missions and pavilions at key international events. Updating outdated export controls and improving consistency and timeliness in their application would better protect UK businesses, especially in the composites sector.

Overall, Composites UK recommends a more cohesive approach linking R&D, trade policy, and international collaboration to foster growth and innovation across the industry.