British Chamber network Trade Manifesto: ‘Digitalisation and Green Trade’

Ana Christie, CEO of Sussex Chamber of Commerce, explains how the organisation is constantly asking questions of the thousands of businesses in the national Chamber network to find out what’s happening in the world of trade.

The evidence is clear; internationally active firms are more productive and resilient. Companies are more likely to report increased investment and cash flow.

As the UK’s trading relationships around the world changes, we understand that businesses will need greater support, information, and incentives to adapt, identify opportunities to increase trade, and attract investment.

The world of trade is in constant flux, fresh markets are emerging, the digitalisation of trade documents is accelerating, and more sustainable goods and services are being developed. We have an opportunity to be at the vanguard of this new wave of commerce for years to come.

The Chamber network is a reliable partner to the UK government when it seeks advice on developing trade policy and reaching, implementing and monitoring international agreements. We need to help the UK government improve market access for UK companies – to open up new opportunities on digital trade, green growth, e-commerce and services for UK exporters, both large and small.

51% of exports are now processed digitally putting us in the top 3 countries in the world. Several developments are now happening which could further accelerate digital trade and boost exports, such as digitalising trade documentation further, digitalising border processes and interfaces, trade agreements to address digital trade issues to promote export growth and more services provided by digital means to be free of customs duties.

The transition to Net Zero and the commitments undertaken by both developed and developing countries at the Paris and Glasgow COPs create great opportunities for UK exporters. The focus must be on the technologies to support this transition, and the services which underpin them.

The WTO’s World Trade Report last autumn emphasised the potential benefits of trade liberalisation by eliminating tariffs and addressing non-tariff barriers to green trade, exports in this sector could rise markedly by 2030, expanding global access and growth (by as much as 0.8% of global GDP), and providing a further reduction in global carbon emissions (by 0.58% by 2030). Bilateral trade agreements between countries are helping to promote this agenda, but further impetus could be delivered at plurilateral level through the WTO Trade and Environmental Sustainability Structured Discussions (TESSD).

Alongside this agenda are emerging bilateral and plurilateral initiatives on the greening of supply chains, and dealing with the effects of carbon leakage, both before and after the outbreak of war in Ukraine last February. The US and EU are in advanced discussions on the launch of a Global Sustainable Steel and Aluminium Arrangement as soon as late 2023, which other countries may be able to join, to reduce the carbon footprint of steel imports from markets which embed high levels of carbon in their production. The EU’s Carbon

Border Adjustment Mechanism (CBAM) comes into operation in October 2023 in terms of reporting requirements on imported goods produced outside the EU Single Market, and from 2026 on the key trading provisions within the scheme. The UK government has recently consulted on similar policies to tackle carbon leakage, including the introduction of a potential UK CBAM later this decade.

Moreover, investment in green technologies has become of great significance in global industrial and economic policies. The US Inflation Reduction Act (IRA) is providing up to $369bn in subsidies and tax credits for production of turbines, electric vehicles, and other climate- friendly technologies in the US and connected supply chains under its trade agreements. The EU has adopted a Green Deal as part of its industrial strategy, and further measures may be undertaken at EU and member state level to permit subsidies in key sectors like electric battery and vehicle production.

Taken together, these emerging developments present challenges as well as opportunities on green trade, decarbonising supply chains, and on future investment and subsidies policies.

Sussex Chamber knows all about what is needed to set a business on the road to successful overseas trade.

Contact us to find out more export@sussexchamberofcommerce.co.uk or customs@sussexchamberofcommerce.co.uk

Recommendations set out by the British Chamber network on how the UK should grow digital trade as well as a comprehensive green trade strategy are included in the full Trade Manifesto Report:
https://www.sussexchamberofcommerce.co.uk/article/bcc-trade-manifestoandnbsp