Global Tech & Trade Policy Update

Jonny Reynolds, the previous Secretary of State for Business and Trade but one, has returned to head up the Department for Businesses, Innovation, Science and Trade. He returns after overseeing the development of the Industrial Strategy and Trade Strategy during his last stint as Secretary of State.

A surprise addition to the BIST team has been the leader of Scottish Labour Anas Sarwar, who will be given a peerage to serve as Minister for Trade and will replace Chris Bryant, who is off to the Northern Ireland Office.

Outside of BIST, Kanishka Narayan has been appointed AI Minister in the Cabinet Office, Ed Miliband takes the reins of the FCDO as Foreign Secretary and Hamish Falconer has taken over Nick Thomas-Symonds’ role negotiating with the EU as Minister for Intergovernmental Relations and European Relations. Falconer will be split between Cabinet Office and the FCDO, with EU relations and the ‘reset’ to now be run by the FCDO. Uma Kumaran meanwhile, a Parliamentary Under-Secretary of State in the FCDO, has global tech and AI as part of her portfolio.

Ed Miliband is also tipped to appoint Dame Karen Pierce, former Ambassador to Washington, as the new Permanent Under-Secretary at the FCDO. Pierce was known for her good relationship with the Trump administration, and may offset some disquiet about Miliband as Secretary of State from across the Atlantic.

We are still waiting to see the final division of responsibilities in Whitehall, especially in DCMS where the majority of DSIT’s civil servants and agencies have gone. We are also waiting for a full trade vision from Burnham, who has chosen to focus squarely on domestic priorities so far. Certainly, the recent push for ‘reindustrialisation’ and ‘Made in Britain’ could, if mishandled, could create protectionist barriers to the UK’s trade with other markets.

However, Burnham has already given rhetorical backing in the Times for a closer relationship with the EU, and the team managing this relationship is in place. The new government therefore can, and should, restart the EU reset talks and prioritise ensuring the UK is a fully included partner in the EU’s Technology Sovereignty Package.

techUK will continue monitoring the new government’s announcements to find their priorities for the UK’s trade policy. Members can join our EU policy group to stay up to date.

UK-Switzerland FTA

The FTA includes a number of provisions securing the flow of data between the UK and Switzerland. These come alongside other measures designed to protect IP and copyrighted material in Switzerland; provisions preventing businesses from being forced to disclose their source code of software or cryptographic material as a condition for doing business in Switzerland and vice versa for Swiss firms in the UK; and clauses meaning many services firms will now not be required to establish a physical presence in Switzerland to supply services (a full list is yet to be published)

There are also measures on procurement allowing UK firms to bid more easily for contracts at all levels of Swiss government, including by modernising procedures and making them more transparent. Similarly, there includes direct facilitation of digitalised trading, with the FTA facilitating paperless trading, digital payments, e-commerce and promoting future co-operation on key technology areas such as AI.  

Overall though, this looks like a good deal for the UK tech sector. The main question now is what the actual text of the FTA is, given DBT/DBIST has stuck to publishing factsheets. This is also not the end of the process, and the UK and Switzerland need to sign and ratify the deal.

techUK Delegations

techUK was out in Washington DC in June, and we’ve got a great range of delegations lined up for the Autumn. Join us for our delegations to:

These delegations are great opportunities to meet policymakers, tech companies and officials throughout the world, and suit a wide range of senior policy and sales officials.

UK faces exclusion from EU Scale Up Fund

The UK began accession talks in May and has agreed to provide €150 million in seed funding. It is likely the strong UK tech sector likely to be a key market for the fund and UK scaleups will export to the EU.

However, France and other EU states have raised objections to the UK’s entry into EU schemes despite leaving the bloc several years ago. This has come after the EU reset talks stalled with the change in the UK government and as the UK remains unsure of its inclusion in the ‘Made in Europe’ rules outlined by the Industrial Accelerator Act, where talks are ongoing between France and Germany.

We will keep a close eye on this and are working in Brussels to ensure the UK is included, with a strong scaleup ecosystem in the UK part of strengthening the wider European tech economy.

Worldwide 6G standards

The UK has joined over 20 countries in a US-led effort to set global 6G standards. The move from the White House has come in order to counter China’s growing influence in telecoms.

Matthew Evans was quoted in Politico as saying “For the U.K., participation provides an opportunity to help shape the future global standards and governance of 6G technologies from an early stage, while strengthening collaboration with key international partners on research, innovation and secure telecommunications. We see this as an important step in ensuring U.K. businesses remain competitive in the development and deployment of next-generation wireless technologies.”

UK India FTA goes live

techUK has published a full guide on how to utilise the new agreement including where to find government resources, how to claim preferential tariffs and where wider support is available.

Tolls in the Strait of Hormuz

Politico’s Morning Trade newsletter and Insurance Times report that The Lloyd’s Market Association has issued a new model clause insurers can include in their policies that will release them from liability for paying any tolls through the Strait of Hormuz. Insurers are also released from liability if a payment were to breach sanctions law.

This is the latest setback to resuming shipping through the Straits, with the insurance problem one a potential peace deal would have to tackle.

techUK's Policy and Public Affairs Programme activities

techUK helps our members understand, engage and influence the development of digital and tech policy in the UK and beyond. We support our members to understand some of the most complex and thorny policy questions that confront our sector. Visit the programme page here.