BCC and CI Welcome UK Supply Chain Strategy
19 January 2024
Following the release of the Government’s Critical Imports and Supply Chain Strategy on 17 January, Head of Trade Policy at the British Chambers of Commerce, William Bain, said:
“This strategy provides a substantial and compelling picture of the reliance an open trading economy, like the UK’s, has on these imports. We welcome its publication and its 18 recommendations, particularly the establishment of a Critical Imports Council, offering a focus on how the strategy is being delivered.”
“We believe there is a role that trade policy can play, alongside inward investment strategy and industrial policy, to increase supply chain security. We would encourage Government to consider using free trade agreements and other mutual recognition deals with like-minded partners to broaden the UK’s supply sources”.
“In particular, we hope the UK can develop deeper relationships with key critical material countries like Chile, and successfully conclude a Critical Minerals Agreement with the US.
“The pandemic, the war in Ukraine, and geopolitical tensions in the Middle East show the UK’s deep connectivity with the rest of the world for key medicines, communications technology and components for manufacturing.
“We believe the Strategy sets out the right approach and look forward to engaging on how it can be delivered in the interests of growth in trade and inward investment.”
Chamber International’s Director, Tim Bailey, said: “The events of the last few years have highlighted the UK’s reliance on imports, certain of which are critical to this country. Semi-conductors are a good example: according to the World Trade Organization, ninety percent of semi-conductor manufacturing is done in one part of the world, and this over-concentration of production in a single region is a major concern. Sometimes companies try to mitigate risk through so-called ‘friendshoring’ strategies, in which goods are only sourced from like-minded countries, but, paradoxically, this too can result in a dangerous over-reliance on a particular region. The WTO wants to see globalisation reimagined in a way that addresses these issues, to help build a more resilient, globally balanced trading system”.
Contact us for expert advice and effective international trade services to help grow your business. .
Follow Chamber International on Twitter @ChamberInt and on Facebook for the latest in international trade.
