Baroness Neville-Rolfe speech at Import Export Show
Speech delivered by Baroness Neville-Rolfe, Minister of State at the Cabinet Office, at the Import Export Show on 15 November 2023.
Good morning, everyone, it’s a pleasure to be here with you all today…
…and may I thank the Institute of Export for organising this: their inaugural Import Export Show.
We should be encouraging forums like this…
…forums where businesses can openly discuss the opportunities and the challenges of trading in the 21st Century.
As the Prime Minister has said, we are determined to take the long term decisions needed to change this country for the better.
The Government has been clear that we want the UK to have the most effective border in the world…
…and recently, the UK was presented with an opportunity to improve our borders…
…which resulted from two simultaneous events – Brexit and the rise of innovative technology.
Leaving the European Union presented us with an opportunity to scrutinise our entire trading system…
…not just how we organised trade deals, but the practicalities of that trading.
We wanted to design a system that was as minimally burdensome as possible without compromising our security.
At the same time, the computer systems and software we used for shipping and trading could be improved by emerging technology…
…all positive changes which could make trading smoother and more straightforward.
We are seizing this joint opportunity to improve everything about borders…
…not just what comes through them, but how those goods enter and leave our shores.
Of course this is just as much about building on what works already, as it is introducing innovations.
Just look at the last twelve months, we’ve traded four-hundred-and-thirty-two-billion pounds worth of goods…
…that’s more than ever before.
At the same time, any innovation we bring to our borders must recognise just how complex an operation the borders are…
…dozens of Government departments are involved…
…there’s over one hundred inspection points…
…thousands employed to keep the border safe…
…and tens of thousands more throughout the supply chain.
There are conflicting considerations…
…but we know that we must have a system that both encourages the free-flow of trade…
…and provides security from smuggling, weapons, drugs and plant and animal diseases.
I believe that we have struck that balance in our Border Target Operating Model.
It’s an integral part of the Government’s 2025 Border Strategy…
…and it is this Model which will make a lot of the aspirations in that Strategy a reality.
It both adheres to the Windsor Framework – ensuring that Northern Ireland benefits from the same VAT and duty rates as the rest of the UK…
…and it builds on Brexit freedoms to make trading more straightforward than ever before.
The new Model will use new technology to reduce paperwork for UK importers, saving businesses over five-hundred-million pounds a year…
…it will introduce a new global regime for security and biosecurity…
…as well as bring practical changes to the way trade is managed through our borders for the benefit of businesses and customers.
First, I will focus on safety.
We have all seen and heard the horror stories of when trade comes with some unforeseen risks attached to it.
Right now, many countries are dealing with the fall out of African Swine Fever…
…which is a blight not only on livestock but the livelihood of the international agricultural sector.
I witnessed with horror the foot and mouth outbreak at the turn of the century. That cannot be allowed to happen ever again.
But how do you police these risks?
Well, we want to support global trade and have one set of regulations for businesses importing into the UK…
…whether or not they’re from the European Union.
That’s why the Operating Model includes a new global risk-based model.
It focuses on what food and plant goods are actually at risk – what kind of products they are, and where the risk is geographically located…
…and assigns them a risk factor.
This replaces the old model of subjecting some products to costly, rigorous controls and checks that were overburdensome relative to their risk.
We will also be trialling an ambitious ‘trusted trader’ scheme for animal and plant products…
…where specific traders will provide guarantees and – through greater access to new data and technology – this will help form trusted relationships…
…all decreasing the burden on individual traders.
Our safety checks will not significantly hinder trade, nor will they add to inflation…
…in fact, our current modelling shows that the new Operating Model would have a negligible impact on food prices.
But what would have an impact is a major disease affecting our food and vegetables…
…I mentioned foot and mouth earlier – if that occurred today, it would have an impact of over thirteen-billion pounds.
That’s a cost we cannot take, and it’s a cost which our Operating Model will help avoid.
The second part of this work is being more strategic – using technology and new ways of working to streamline trade…
…and ensure that when goods are imported, that they are handled in an efficient way.
Technology is the foundation that the Operating Model is built on…
…and we’ll be using new tech to reduce the volume of paperwork for UK importers.
We have partnered with industry to test the whole border process…
…to see how we can use technology to cut costs and save time.
Whether that’s using ledger technology to ensure that everyone – from trader to border staff – are quite literally on the same page…
…or using GPS trackers on goods to ensure that anything lost becomes found.
We are also addressing the fundamentals of trade…
…as the new operating model will not only introduce new routes into Liverpool ports…
…but also help resolve delays in goods travelling through Heathrow.
We are also solving one of the most long-standing complaints that new traders have…
…that when they apply for licences or submit other trade data to the government, the system can be multifaceted, repetitive and, frankly, confusing.
That’s why we’re introducing the new UK Single Trade Window.
When fully operational, it will provide one digital gateway for users…
…one where they can provide all the data needed to trade, as well as apply for licences and authorisations for trusted trader schemes.
All of the changes I’ve described today will be introduced steadily throughout 2024.
It will begin at the end of January…
…with the introduction of health certification on imports of medium risk animal products…
…as well as plants, plant products…
…and high risk food and feed of non-animal origin from the European Union.
By the end of April, imports of sanitary and phytosanitary products from the rest of the world will benefit from the new risk based model.
And, by the end of October, safety and security declarations for EU imports will come in to force…
…as well as introducing a reduced need for data for imports.
Ladies and gentlemen, these are significant positive changes…
…and I believe we can look forward to this future with great confidence.
The Government wants nothing less than the most effective border in the world…
…one which embraces innovation to keep citizens and businesses healthy and robust.
I believe we can bring major benefits to our trading communities so well represented here today…
…and I look forward to working with you all to increase UK trade throughout the world.
Thank you very much.