Tag: trade deal

Tata Group to invest over £4 bn in UK gigafactory creating thousands of jobs

  • Tata Group announces new multibillion-pound electric car battery factory to be built in the UK – one of the largest ever investments in the UK automotive sector.
  • Investment will create up to 4,000 new direct jobs, and thousands more in the wider supply chain – driving forward the Prime Minister’s priority to grow the economy.
  • New gigafactory set to provide almost half of the battery production needed by 2030 – turbocharging UK’s switch to zero emissions vehicles.

The UK has been chosen as the home of Tata Group’s first ‘gigafactory’ outside India, in a move set to create thousands of jobs and bring a huge boost to the UK’s automotive sector.

Tata Group confirmed the UK had secured one of the largest ever investments in the UK auto industry today (19 July). The gigafactory will secure UK-produced batteries for another Tata Sons investment, Jaguar Land Rover, as well as other manufacturers in the UK and Europe.

The new gigafactory, at 40GWh, will be one of the largest in Europe. It will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, helping grow the economy and take forward the UK’s commitment to net zero.

Prime Minister Rishi Sunak said: “Tata Group’s multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers.

“With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain.

“We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles.”

Mr N Chandrasekaran, Chairman, Tata Sons, said: “The Tata Group is deeply committed to a sustainable future across our business.

“Today, I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK. Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR (Jaguar LandRover).

“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.

“I also want to thank His Majesty’s Government, which has worked so closely with us to enable this investment.”

The investment of over £4 billion represents a historic moment for the UK’s growing electric vehicles industry.

The new gigafactory will supply JLR’s future battery electric models including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers. Production at the new gigafactory is due to start in 2026.

This investment will be crucial to boosting the UK’s battery manufacturing capacity needed to support the electric vehicle industry in the long term. With an initial output of 40GWh it will also provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.

Business and Trade Secretary Kemi Badenoch said: “Today’s multibillion-pound investment demonstrates that this Government has got the right plan when it comes to the automotive sector.

“We are backing the UK car industry to help grow our economy as we transition to electric vehicles, and this latest investment will secure thousands of highly-skilled jobs across the country.

“Tata’s decision is a major vote of confidence in UK automotive. The Government is committed to making the UK one of the best places in the world for automotive investment, as evidenced by the Automotive Transformation Fund, the British Industry Supercharger, and the strong programme of support for research and development.”

Chancellor of the Exchequer Jeremy Hunt said: “This is a huge vote of confidence in the UK and one that will drive growth in our economy, creating thousands of jobs and powering our transition to electric cars.

“Tata Group’s gigafactory builds on the strength of our manufacturing industry and shows we’re on the right track, backing the sectors that will underpin our future prosperity for decades to come.”

Energy Security Secretary Grant Shapps said: “Today’s announcement from Tata is excellent news. We have been working tirelessly with the company, and across government, to make the case for why the UK is the best place for them to invest.

“This new gigafactory puts us firmly in the fast lane to becoming the capital of Europe’s electric car market, and makes crystal clear how they see the UK as the place to be for their future growth.

“With thousands of jobs on site and in the supply chain, this new factory will be the cornerstone of our automotive industry, backing manufacturers to develop and expand, and customers to make the switch from petrol and diesel.”

MEGA-DEAL? UK signs treaty to join ‘vast’ Indo-Pacific trade group

Business and Trade Secretary Kemi Badenoch has formally signed the treaty to accede to CPTPP trade group in New Zealand this morning

  • Business and Trade Secretary Kemi Badenoch formally signed the treaty confirming the UK’s accession to CPTPP – the Indo-Pacific trade bloc now worth £12 trillion in GDP – in New Zealand today [Sunday 16th]
  • To celebrate this huge moment, the Government released new figures showing CPTPP-owned businesses employed one in 100 UK workers, with membership expected to turbocharge investment in the UK even further
  • British whisky and cars amongst 99% of current UK goods exports to CPTPP set to be eligible for zero tariffs as UK businesses given unparalleled access to market of over 500 million people

Business and Trade Secretary Kemi Badenoch has formally signed the treaty to accede to CPTPP trade group in New Zealand this morning [Sunday], kickstarting the UK’s membership of a modern and ambitious trade deal spanning 12 economies across Asia, the Pacific, and now Europe.

The Secretary of State is in Auckland to put pen to paper on this ‘mega deal’, alongside New Zealand Trade Minister Damien O’Connor, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalisation Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.

The signature is the formal confirmation of agreement for the UK to join the group, following substantial conclusion of negotiations earlier this year. The Government will now seek to ratify the agreement, which will include parliamentary scrutiny, whilst other CPTPP countries complete their own legislative processes.

The signing comes as a new government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country.

Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion in 2021, by guaranteeing protections for investors.

Ian Stuart, CEO at HSBC UK, said: “The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology.

“At HSBC UK, we are incredibly excited about the opportunities this agreement presents; as the world’s leading global trade bank we will support UK businesses to achieve their full potential and open up a world of opportunity.”

Cath White, Head of International at Belvoir Farm said: “The UK’s accession to CPTPP will mean more than 99% of UK goods exported to CPTPP member countries will be eligible for zero tariffs.

“It will also ease administrative and commercial trade barriers to allow talented and passionate UK producers to tell their story on a worldwide scale.

“At Belvoir Farm, we export 20% of our turnover to markets across the globe, with one third of exports bound for Indo-Pacific markets, including Australia, New Zealand, Japan and Singapore. This is a fantastic opportunity to grow British brands, especially this year when the spotlight is on the UK.”

Ian Galbraith, Group Strategy Director at Mott MacDonald, said: “Mott MacDonald is strongly supportive of UK accession to CPTPP and proud to have been part of the technical board advising the British negotiating team.

“The Partnership’s ambitious services and procurement chapters pave the way for greater recognition of professional competence in engineering and architecture, and establish open, fair and transparent competition rules in government procurement, allowing world-leading firms like Mott MacDonald to win and service new contracts across the many countries covered by CPTPP.”

Speaking ahead of the signing, Kemi Badenoch said: “I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.

“We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”

The report found CPTPP investment accounted for:

  • Over £240 billion in turnover in London, £35 billion in the South East and £18 billion in the East of England
  • The creation of 26,000 jobs in 2021 and 2022
  • 75% of all employment in CPTPP-owned businesses was outside of London
  • One in 50 jobs in the North East
  • One in every 25 jobs in the manufacturing sector

The report also found that CPTPP companies punch above their weight economically. While they account for 0.3% of all businesses in the UK, they generate 6.1% of the UK’s total turnover – 20 times higher than the proportion of businesses they represent.

The UK will be the first European member and first new member since CPTPP was created, which would have been impossible had we remained in the EU. With the UK as a member, CPTPP will have a combined GDP of £12 trillion and account for 15% of global GDP.

The UK Government will now take the steps needed to bring the agreement into force, expected to be next year.

Being part of CPTPP will mean that more than 99 per cent of current UK goods exports to CPTPP countries will be eligible for zero tariffs.

Dairy farmers, for example, will benefit from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico. This builds on the £23.9 million worth of dairy products we exported to these countries in 2022.

The UK Government says the agreement is a gateway to the wider Indo-Pacific which is set to account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come, bringing new opportunities for British businesses and supporting jobs.

UK signs historic trade deal with Ukraine as part of enhanced support

  • Business and Trade Secretary Kemi Badenoch and Ukrainian First Minister sign UK-Ukraine Digital Trade Agreement to provide vital support for Ukrainian economy
  • Department for Business and Trade mobilises UK businesses to engage in future reconstruction projects in Ukraine with major conference
  • UK pledges to extend the removal of tariffs on all Ukrainian products until March 2024

The UK today [Monday 20 March] signed a pivotal digital trade deal with Ukraine that will support the country’s economy and greatly enhance the UK-Ukraine trade and investment relationship.

The Department for Business and Trade today hosted a number of Ukrainian ministers, as well as 200 UK and international businesses and officials, at Mansion House to lay the foundation for closer future co-operation.

The Road to Ukraine Recovery Conference, geared towards supporting Ukraine’s National Recovery Plan and mobilising UK businesses to engage in future Ukraine reconstruction projects, opened with a welcome from the Business and Trade Secretary. This event, and our mobilisation of UK industry, is a key stepping stone on our route to the Ukraine Recovery Conference that will be hosted in London in June.

Ms Badenoch, alongside Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, virtually signed a ground-breaking new Digital Trade Agreement (DTA) that will help Ukraine support its economy through the current crisis and lay foundations for its recovery and revival.

Business and Trade Secretary Kemi Badenoch MP said: “The historic digital trade deal signed today paves the way for a new era of modern trade between our two countries.

“We are also extending tariff free trade on imports from Ukraine to early 2024, providing much needed support to Ukrainian businesses. These initiatives will help protect jobs, livelihoods and families now and in Ukraine’s post-war future.”

Since June 2022, UK negotiators worked at record pace with their Ukrainian counterparts to deliver a deal after President Zelenskyy highlighted the important role Ukraine’s first ever digitally focused trade agreement could play in bolstering his country’s economy.

Ukraine will have guaranteed access to the financial services crucial for reconstruction efforts through the deal’s facilitation of cross-border data flows. Ukrainian businesses will also be able to trade more efficiently and cheaply with the UK through electronic transactions, e-signatures, and e-contracts.

First Deputy Prime Minister and Minister of Economy for Ukraine, Yuliia Svyrydenko said: “This digital trade agreement illustrates that Ukrainian IT companies operating in Ukraine are in demand around the world despite all the challenges of war.

“The UA-UK Digital Trade Agreement has enshrined core freedoms for trade in digital goods and services. Ukraine believes that an open and free framework for the digital economy is the best investment in future oriented development.”

The UK’s total military, humanitarian and economic support pledged since 24 February 2022 now amounts to over £4 billion. The UK is a key partner for Ukraine in its reconstruction efforts.

We hosted the UK-Ukraine Infrastructure Summit in June 2022, signed a Memorandum of Understanding (MoU) agreeing to play a leading role in the reconstruction of Kyiv Oblast and set up the Infrastructure Taskforce to implement this agreement.

Stuart Senior, Member of the Supervisory Board, Gleeds said: “As international construction consultants, Gleeds has had a presence in Ukraine for many years. We welcome this new agreement which strengthens UK-Ukraine relationships and helps Ukraine’s increasing development as a modern, open economy.

“The DTA will remove barriers to digital trade and enable partnership initiatives and collaborative working to be delivered more effectively. It will also further enhance the acceleration of economic recovery through the faster delivery of critical infrastructure reconstruction projects by implementing better processes and standards.”

In the margins of the Road to URC event, the UK confirmed its intention to extend the removal of tariffs on Ukrainian products until March 2024. This follows the UK’s world-leading decision in May 2022 to cut tariffs on all goods from Ukraine to zero and will provide much needed support to Ukrainian businesses given the impact of the war on Ukraine’s ability to export goods.

The UK also continues to support Ukraine through decisive sanctions against Russia. The UK and its allies have introduced the most severe economic sanctions ever imposed on a major economy, including on £20 billion (96%) of UK-Russia goods trade from 2021.

Sanctions are having deep and damaging consequences for Putin’s ability to wage war. Since the start of the invasion, UK goods imports from Russia have fallen by 99% and goods exports to Russia have fallen by 80%.

Do The Right Thing!

Alister Jack calls on all Scottish MPs to back UK-EU trade deal

Secretary of State for Scotland, Alister Jack, has called on all Scottish MPs to support the UK’s historic Free Trade Agreement with the EU when Parliament votes on it this week.

He said: “We have secured a historic Free Trade deal with the EU that delivers for Scotland and the whole of the UK. This is a deep and wide-ranging deal, covering trade, security, travel, transport, energy, health and social security.

“As Parliament prepares to vote on the deal this week, I urge all Scottish MPs to give it their wholehearted support.

“Outside the EU, the UK can sign our own trade deals around the world, bringing new opportunities for exporters and some of Scotland’s most iconic products.

“For our farmers, the deal avoids tariffs on their world-beating Scotch lamb and beef.

“For our fishermen and coastal communities, the deal delivers what we promised.

“We are regaining control of our waters, we are restoring our status as an independent coastal state and, even during the five year adjustment period, there will be a big overall increase in our share of the catch in our waters.

“As we leave the Common Fisheries Policy, our fishermen will also enjoy near-exclusive access to inshore waters up to the historic 12 mile limit.

“The deal is good news for Scotland and I believe it is now time to move on from the Brexit debate and join forces in embracing our exciting future. Whether Leaver or Remainer in 2016 we need to come to together to make the most of our new opportunities.

“The people of Scotland will expect their MPs to do the right thing on Wednesday and vote for the deal. They will not easily forgive those who reject this Free Trade Agreement or throw their weight behind a no deal Brexit.”

As the Scottish Secretary is well aware, SNP MPs will vote against the deal this week. The Tories have a big majority at Westminster, however: the deal will go through – Ed.