Policy and Trade Update - November 2015

Dear BABC Colleagues,

We are pleased to send you our fourth internal policy and trade bulletin, prepared to provide Chapters of the British-American Business Council (BABC) with an update on the Council’s policy and trade activities. Please note that we will issue the next ‘Issue Insight’ later this week. Please get in touch with Emanuel at eadam@babinc.org if there is anything that you would like to see featured in the upcoming issue.

In this issue:

Key Updates and Action Points

Chapter Activities

Outreach and Media

News Update

UK-US Trade and Investment News


Key Updates and Action Points:

BritishAmerican Business 1st Policy Manifesto launched 

On 12 November 2015, BritishAmerican Business (BAB) launched its first Policy Manifesto. The publication is the result of a consultation process held with BAB members and the chapters of the British-American Business Council (BABC) since July 2015. This first edition puts its focus on ‘Providing a Transatlantic Voice for Britain’, covering eight policy areas BAB members see crucial to address in 2015/16. To download the publication online, click here. To read the open letter, sent by BAB’s CEO, Jeffries Briginshaw, to Prime Minister Cameron to mark the launch, click here.

The publication is designed to provide a basis for all BABC chapters who wish to engage on one of the issues covered in the Manifesto. Please get in touch with Emanuel at eadam@babinc.org if you wish to use the text further.

BABC as partner of the International Festival for Business 2016, Liverpool

The BABC is an official partner of the International Festival for Business (IFB), which will take place from 13 June to 1st July 2016 in Liverpool.

Thank you to all chapters who have already confirmed their support of our promotion of the International Festival for Business. More information on the festival here. Please get in touch with Tamra at teker@babinc.org if you would like to participate and/or need further information.

Expanding your business in the US/UK – Webinars

Jeffries Briginshaw, CEO of the BABC, will speak on BABC’s role helping companies to expand their businesses across the Atlantic in two special webinars, facilitated by ibt partners, in early 2016:

More information will be sent in the next update. We invite you and your members to participate. For any questions, contact Emanuel at eadam@babinc.org.

Business case studies on TTIP for US report

Thank you to all US-based BABC chapters supporting the US case study report initiative. For any questions regarding the initiative, contact Mairi at mmaclennan@babinc.org.


Chapter Policy and Trade Activities:

Upcoming: What a transatlantic trade and investment agreement means for Scotland

The Scottish North American Business Council (SNABC), in collaboration with BAB London, will invite leading industry and government representatives in Scotland to an informal roundtable on ‘What a transatlantic trade and investment partnership means for Scotland’. The event will take place on 14 December 2015 in Edinburgh. The event is by invitation only.

Meeting with Trade Ohio delegation in London

On 9 November 2015, BABC CEO, Jeffries Briginshaw, and Head of Policy and Trade, Emanuel Adam, met with Andrew Lange, Director International Sales, JobsOhio, Gareth Hagan, Chief Commercial Officer at OCO Global to discuss trade and business opportunities between Ohio and the UK.

Summary report of the ‘Open for Business’ event ‘What a transatlantic trade and investment agreement means to the UK life sciences sector’

On 9 November 2015, BAB London published the summary report of our ‘Open for Business’ event on TTIP and the life sciences sector that took place on 24 September 2015 in Oxford, UK. The event was supported by the BABC. To download the publication, please click here.

‘Open for Business’: What a trade and investment agreement means to the UK Automotive sector

On 5 November 2015, BAB London, in partnership with BABC Midlands and Jaguar Land Rover (JLR), hosted the fourth and final event in the ‘Open for Business’ series, ‘What a trade and investment agreement means to the UK Automotive sector’. The event was held at the Heritage Motor Centre in Gaydon, West Midlands, UK, and featured panellists from JLR, the Department for Business, Innovation and Skills (BIS), the US Embassy in London, and the Manufacturing Advisory Service (MAS). For more information, click here and see our Storify story here.

Is your chapter engaged in policy and trade work? Then we want to hear from you! Send your news and updates or your initiatives to Emanuel at eadam@babinc.org.


Outreach and Media:

UK immigration is a success story

In light of the recent UK immigration figures, showing a new record of net migration, on 27 November 2015, BAB issued a statement saying that UK immigration is a success; countering dominant voices calling a restriction. See read the full statement, click here.

New Blog Post on TTIP: When will the US enjoy Melton Mowbray pies?

Why TTIP could help for Americans to enjoy the popular British dish answers our colleague Mairi Maclennan in the latest TTIP blog. To read the blog, click here.

BAB and BABC celebrate the US as a premier destination of UK exports

On 12 November 2015, on the occasion of the UK Trade & Investment export week, BAB and the BABC issued a joint statement, celebrating the importance of the US as a premier destination for UK exports. To read the full statement, click here.

 BAB Policy feature in BAB Network Magazine

In the latest edition of ‘Policy World: What’s New’ in BAB’s Network tri-annual magazine, Emanuel Adam, BAB’s Head of Policy and Trade explains four policy areas that transatlantic businesses should have on their radar this fall. Full article on page 20 of Network Magazine.

BAB London at ‘Stop TTIP’ event in Lewisham, UK

On 10 November 2015, BAB Head of Policy and Trade Emanuel Adam, spoke at ‘Stop TTIP’ event held at the Zion Chapel in Lewisham on why UK business supports TTIP.

BABC Midlands on TTIP and the UK automotive Sector

Along to the event ‘What a trade and investment agreement means to the UK Automotive sector’ BABC Midlands and its Executive Director, Helen Melville, were covered by local media on TTIP and the UK automotive sector.

Business Quarter Online:  ‘Transatlantic deal to boost the Midlands automotive sector’

Midlands Business News: ‘Transatlantic trade deal could boost region’s auto industry’

Click here to read the post event article, released by BABC Midlands on 19 November 2015


News Updates:

TTIP Negotiations Round 11: Where are we and what next?

The eleventh round of TTIP negotiations in Miami last month saw representatives from both sides of the Atlantic agree on the mutual elimination of 97% of tariffs, including zero duties for most product lines upon entry and enforcement of the agreement. Negotiating parties also focused on the chapter on small and medium enterprises (SME’s), customs and trade facilitation and regulatory cooperation for important industry sectors. The 12th round is expected to take place in Brussels in late January – early February. To read the full summary, click here.

Trans-Pacific Partnership (TPP)

The full text of the Transpacific Partnership was released on 5 November 2015, marking the start of a 90 day period of Congressional scrutiny and a review by the International Trade Commission, US stakeholders and members of the US advisory committees. Read more here.

European Single Market

USTR, Ambassador Michael Froman cautious over possible ‘Brexit’

US trade representative, Michael Froman, said that the US ‘is not particularly in the market for free trade agreements with individual countries’, asserting that the UK would ‘be subject to the same tariffs, and other trade-related measures, as China, or Brazil or India’ should the UK leave the EU. Read the full story here.

Competitiveness (data)

On 6 November 2015, European Commission Vice President Andrus Ansip and Justice Commissioner Vera Jourova expressed the commission’s willingness to have a new data sharing arrangement with the US within the next three months. Commission Vice President Andrus Ansip stated Europe and the United States ‘have all tools at hand to achieve this in three months’. More information here.

UK-US Trade and Investment News:

UK-US Trade in goods - September 2015

US exports to UK = £2.95 billion

18.7% increase in US exports to the UK compared with August 2015

18.8% of total non-EU imports to the UK

Source:

https://www.uktradeinfo.com/Statistics/OTS%20Releases/OTS_Release_0915.pdf

UK exports to US = £4.14 billion

26.1% increase in UK exports to the US compared with August 2015

3.14% of total imports to the US

Sources:

https://www.census.gov/foreign-trade/balance/c4120.html

https://www.census.gov/foreign-trade/balance/c0004.html

Source:

https://www.uktradeinfo.com/Statistics/OTS%20Releases/OTS_Release_0915.pdf

Source: https://www.census.gov/foreign-trade/balance/c4120.html


Recent relevant publications

UK Pink Book 2015 (released 30 October 2015)

Trade in 2014

Short analysis:

The US remains the key export partner for UK goods and services in 2014. Despite a slight downward development in both exports in goods and services since 2013, the UK has continues to show a strong trade surplus with the US.

Top Export Destinations for UK goods:

United States of America: £ 37.3 billion (down from £40,2 billion in 2013)

Germany: £31.2 billion

Netherlands: £23 billion

Top Import of Goods in the UK:

Germany: £60.7 billion

China: £37.2 billion

Netherlands: £31.7 billion

United States of America: £28.1 billion (up from £27,5 billion in 2013)

Top Export Destinations for UK services:

United States of America: £50.6 billion (down from £51,9 billion in 2013)

Switzerland: £12.6 billion

Germany: £12 billion

Top Imports of Services in the UK:

United States of America: £23.4 billion (down from £23,6 billion in 2013)

France: £12 billion

Spain: £10.2 billion

Germany: £9.7 billion

Source: The Pink Book 2015

For the full table, select the Chapter 9 Tables and access table 9.12:

http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-382775

OECD FDI Statistics First Half of 2015 (October 2015, published quarterly)

Global FDI for the first half of 2015 (1st Q + 2nd Q) was $883 billion USD.

Short analysis:

Global FDI flows increased by 29% in the first quarter of 2015 as compared to the previous quarter, from USD 387 billion to USD 499 billion, due to inward FDI flows to the United States hitting a record level (at USD 200 billion), of which USD 86 billion was in the chemical sector and USD 81 billion was in the ‘other manufacturing sector’.

Global FDI flows decreased in the second quarter by 23% to USD 384 billion, a level which remains comparable to the last quarter of 2014.

US-UK Share Quarterly breakdown:

  • 1st Quarter US+ UK share of FDI outward flow: US ($82.53 billion USD) +UK ($-30.43 billion USD) = $52.09 billion USD or 13% or global FDI outward 
  • 1st Quarter US+UK share of FDI inward flow: US ($199 billion USD) + UK ($34 billion USD) = $233.6 billion USD or 39% of total FDI inward flow
  • 2nd Quarter US + UK share of FDI outward flow = US ($94.32 billion USD) + UK ($-1.73 billion USD) = $92.5 billion USD or 25% of Global FDI outward flow
  • 2nd Quarter US+UK share of FDI inward flow= US (66.7 billion USD) + UK (7.3 billion USD) = $74 billion USD or 18% of Global FDI inwards flow

First Half of 2015 (Q1+Q2):

  • First half of 2015 US-UK share of FDI outward flow: $144.59 billion USD or 19.02% share of global outward FDI flow over the first half of 2015.
  • First half of 2015 US-UK share of FDI inward flow: 326.1 billion USD or 33.96% share of global inward FDI flow over the first half of 2015

Source: OECD’s ‘FDI in Figures’, October 2015 Edition, available here.