British Economy:

1
British Economy

Lawrence Lui Frank Fritsch
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Department of Trade and Industry
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Background

• Worlds 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

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Goals

• 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

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Trade and Investment how the UK benefits

• lower prices and wider choice for consumers
• Promotes economic growth in developed and less
  developed economies

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UK trade and investment

• 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

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UK trade and investment

• Has contacts with over 200 different UK embassies
  that will help with the trading policy

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Gains from liberalization

• 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

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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

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EU Involvement
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Developing Countries Trade

• Competitive domestic markets
• promotes greater use of the market
• more stable and less arbitrary policy
  intervention
• stronger competition
• macro-economic stability

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Involvement in multiple organizations to help
international trade.

• 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)

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Presidency of the EU and DTI's four main goals

• 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

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World Trade Organization Involvement
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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?

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Chancellor Gordon Brown

• 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

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WTO Hong Kong Summit
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END.
Questions?