The Trade Facilitation Commission release their report entitled ENSURING ECONOMIC GROWTH

5th November 2024

ENSURING ECONOMIC GROWTH

At an event held in the House of Lords on 5th November, The Trade Facilitation Commission released their detailed report and announced a series of proposals aimed at boosting the UK’s economic growth by modernising and simplifying customs and border processes. As the government places economic growth at the forefront of its agenda, the TFC urges immediate action on trade facilitation to support UK businesses and increase GDP per capita.

Reflecting on the urgency of these reforms, Shanker Singham, trade expert and Co-vice Chairman of the TFC, said:

“Trade facilitation could unlock an increase of up to £3,500 in GDP per capita per UK household, bringing greater prosperity through more efficient border processes and reduced friction for businesses.” 

He further emphasised that enhancing the UK’s trade openness could fuel economic growth at a time when the country faces a pressing growth crisis.

Prime Minister's Economic Growth Mission
During a recent visit to Italy, the Prime Minister underscored the government’s dedication to fostering economic growth by removing impediments to progress and evaluating every decision by its potential to promote growth. This commitment is part of the government’s broader set of objectives, which include strengthening the economy, making Britain a clean energy superpower, and breaking down barriers to opportunity.


The TFC identified four reasons why trade facilitation is urgently needed:

  1. Economic Growth Crisis: The UK, along with other G7 countries, faces an ongoing economic growth challenge since the Global Financial Crisis.
  2. Declining EU Trade: Trade with the EU has decreased due to new trade processes, impacting UK businesses.
  3. Supply Chain Vulnerabilities: COVID-19 disruptions exposed weaknesses in the UK’s understanding of its supply chains.
  4. Increasing Complexity: With new regulations emerging, particularly from the EU, a more streamlined and manageable trade system is critical to future resilience.


Robert Hardy, a leading expert in customs and Co-vice Chairman of the TFC, stressed the importance of simplifying customs processes to help traders navigate this evolving environment:

“Customs simplifications, including streamlined declaration procedures, are essential. Reducing administrative burdens and leveraging real-time supply chain data will allow traders to focus on growth instead of red tape.”


Trusted trader programs, which pre-qualify businesses that meet compliance standards for quicker border processing, are pivotal to the TFC's vision for trade facilitation. 

Lars Karlsson, a trusted trader authority and TFC Commissioner, said: 

“We need to rethink trusted trader schemes in the UK, expanding them to ensure secure, streamlined processes across all government agencies. This will empower compliant traders and allow for faster, smoother border transactions, promoting both economic growth and security.”


The TFC recommends that the UK move toward implementing smart borders and digital trade corridors. This technology-driven approach would allow for automated monitoring, real-time container tracking, and pre-arrival data exchanges, thus minimising border delays and enhancing security. 

Lord Agnew, Chairman of the TFC concluded:

"Trade facilitation is not a luxury—it’s an essential driver of growth. By embracing digital tools, simplifying customs, and empowering trusted traders, we can transform the UK’s trade landscape and secure a prosperous future for businesses and people alike.”

 

Unlocking UK Trade Potential – 
A Strategic Discussion

We dive deep into the UK’s evolving trade landscape, exploring the key steps needed to facilitate smoother, more efficient border management and unlock economic growth. 

The podcast covers crucial topics such as, Trusted Trader Schemes, Supply Chain Data and Smart Borders and Digital Trade Corridors.

Join us as we discuss the transformative steps the UK can take to lead the world in trade facilitation and the pivotal role of innovative border strategies in driving economic growth.

 

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