Transcript Trade for the United Kingdom

British Economy:
Lawrence Lui
Frank Fritsch
Department of Trade and
Industry
Background
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World’s eight largest exporter
of goods (£ 191 billion in
2004)
Second largest exporter of
services (£ 96 billion in 2004)
Exports are equivalent to
around one-quarter of GDP
Highest ratio of inward and
outward investment to GDP
of any leading economy
Goals
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Living standards and the
competitiveness of our industry depend
on our ability to trade and invest freely
Maximizing the opportunities for
international trade
Liberalization
Opening the markets of developing
countries
Trade and Investment: how the UK
benefits
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lower prices and wider choice for consumers
Promotes economic growth in developed and
less developed economies
UK trade and investment
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UK Trade & Investment is the Government
organization that supports companies in the
UK doing business internationally and
overseas enterprises seeking to set up or
expand in the UK
UK trade and investment
• Has contacts with over 200 different UK
embassies that will help with the trading policy
Gains from liberalization
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Since then, average industrial tariffs of
developed countries have fallen from nearly
40% to less than 5% through eight rounds of
multilateral trade liberalization
A more liberal investment environment has
facilitated increased overseas investment
By 2003 the world stock of foreign direct
investment was equivalent to 23% of world
GDP compared with 6% in 1982
Current: Trade Deficit
• Narrowed to 3.9 billion
pounds ($6.8 B)
• Compared to 5.8 billion
pounds in August
• Export to EU down 3%
• Exports to rest of world
up 9%
EU Involvement
Developing Countries & Trade
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Competitive domestic markets
promotes greater use of the market
more stable and less arbitrary policy
intervention
stronger competition
macro-economic stability
Involvement in multiple organizations
to help international trade.
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Special/Differential Treatment in the WTO
The United Nations Conference on Trade and
Development (UNCTAD)
Economic Partnership Agreements (EPAs)
The Generalized System of Preferences (GSP)
EU Free Trade Agreements (FTAs)
Current: Indo-British Partnership Network (IBPN)
Presidency of the EU and DTI's
four main goals
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Better regulation
Open and sustainable markets in an
outward facing Europe
Boosting our economies’ potential for
research and innovation
Promoting employment
Current: EU budget rebate proposal for
2007 - 2013
World Trade
Organization
Involvement
WTO: G8 (G7)
Group of 7/8
•Leaders discuss ways to
address major economic and
political issues
•Who are the G7 Finance
Ministers and what is their
role?
Chancellor: Gordon Brown
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The Chancellor of the Exchequer is the title held
by the British cabinet minister responsible for all
financial matters
He also has oversight of public spending across
Government departments, and is generally
second only to the Prime Minister in political
power
WTO: Hong Kong Summit
END.
Questions?