West of England to benefit from recent trade deals

Three trade deals agreed by the UK Government in recent weeks will benefit manufacturing that accounts for around 5% of all employment in the West of England.  

Reducing India’s tariffs on machinery, reducing the US tariff on cars and removing American tariffs on UK aerospace will support employers with a significant presence in the region like Airbus, Rolls-Royce, and GKN Aerospace.  

This means job security for workers, jobs creation supported in local communities and higher living standards across the West of England. 

Prime Minister Keir Starmer said: “The trade deals that we have closed provides certainty for the 5% of all working people who are employed in manufacturing, delivers security for their families and puts more in people’s pockets.   

“It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.    

“These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across the West of England.” 

68,000 people employed in agriculture (a fifth of all agriculture workers in England) across the South West will benefit significantly from the UK’s trade deal with the EU, that removes red tape and burdens on business, meaning regional specialties like Cheddar Cheese now have easy access to the UK’s biggest trading market. 

In another win for local producers, the deal means goods like Gloucestershire sausages that previously could not be exported can now be sold to customers in the EU. 

Business and Trade Secretary Jonathan Reynolds said: “The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need. 

“We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in the West of England, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.” 

John Harrison, Chair of Airbus UK, said: “We welcome this new chapter in the UK-EU relationship. In an uncertain world, closer cooperation gives businesses greater certainty and unlocks new opportunities for investment, innovation and growth. 

For Airbus, with our unique industrial footprint across both the UK and EU, this reset provides a vital platform to strengthen partnerships in defence, space and civil aerospace, areas where collaboration is essential to Europe’s long-term security and competitiveness.” 

The UK’s increased trade with India will unlock opportunities for every region in the UK to access the world’s fastest growing major economy, including the West of England.  

Under the Free Trade Deal that was concluded, the barriers to trading have been dropped, with India agreeing to reduce tariffs on products including advanced machinery, aerospace and medical devices that are made in the West of England.  

Based on 2022 trade alone, this amounts to India cutting tariffs worth over £400 million when the deal comes into force, which will more than double to around £900 million after 10 years.     

India reduced tariffs on medical devices and machinery exported from the UK, that will deliver significant benefits for firms across Bristol and the wider region.  

The deals both support collaboration on green energy tech, aligning with the region’s initiatives in renewables and energy innovation. They also bring benefits to the financial, digital and services companies that are based in Bristol which employ local people and generate economic growth across the region.  

Peter Dilnot, CEO of GKN Aerospace, said: “These deals provide the certainty our industry needs to continue investing in the UK. The aerospace exemption in particular is critical as our supply chains operate globally and tariffs disrupt the efficient flow of parts and technology.  

GKN Aerospace looks forward to continue developing the advanced technologies and future skills needed to maintain the UK’s aerospace leadership.” 

During the week of 19th May, the Prime Minister confirmed a new agreement with the European Union that will look to grow the economy, creating more jobs in the West of England, raising standards and putting more money in people’s pockets.   

For the full press release on the announcement, please see here: West of England to benefit from recent trade deals – GOV.UK