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    (for the year ended 31 March 2020) Annual 2019-20 Accounts Report and


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    Annual Report and Accounts 2019-20 3 Department for International Trade Annual Report and Accounts 2019-20 (for the year ended 31 March 2020) Accounts presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000. Annual Report presented to the House of Commons by Command of Her Majesty. Order by the House of Commons to be printed on 16 July 2020. HC 409


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    © Crown copyright 2020 This is part of a series of departmental publications which, along with the Main Estimates 2020-21 and the document Public Expenditure: Statistical Analyses 2019, present the government’s outturn for 2019-20 and planned expenditure for 2020-21. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/official-documents Any enquiries regarding this publication should be sent to us at Department for International Trade, Finance and Business Services Directorate, Windsor House, 50 Victoria Street, London, SW1H 0TL ISBN 978-1-5286-2068-0 CCS0120905966 July 2020 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office


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    Annual Report and Accounts 2019-20 5 Contents Accountability Report Foreword by the Secretary of State 7 Corporate Governance Report 68 Permanent Secretary’s Statement 9 Non-Executive’s Report 68 Ministers and Departmental Board Performance Report Members 70 Overview 12 Statement of Accounting Officer’s Responsibilities 76 Department for International Trade in 2019-20 14 Governance Statement 77 DIT’s Structure 16 Remuneration and Staff Report 92 Context: Notable Issues and Risks 18 Remuneration Report 92 Performance Summary 20 Staff Report 101 Objective 1 (Exports) 20 Parliamentary Accountability and Audit Report 109 Objective 2 (Investment) 26 Statement of Parliamentary Supply 109 Objective 3 (Trade Policy) 32 Notes to the Statement of Objective 4 (Global Britain, Prosperity, Parliamentary Supply 111 Stability and Security) 38 Parliamentary Accountability Objective 5 (Building an Disclosures 114 Effective International Economic Department) 42 The Certificate and Report of the Comptroller and Auditor Performance Analysis 48 General to the House of Commons 116 Sustainability Report 58 Financial Review 62 Financial Report Financial Statements 122 Notes to the 2019-20 Resource Accounts 126 Annex A: Sector Sponsorship 145 Annex B: Core Tables 146


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    6 Department for International Trade The Rt Hon Elizabeth Truss MP Secretary of State for International Trade and President of the Board of Trade


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    Annual Report and Accounts 2019-20 7 Foreword by the Secretary of State The Department for International Trade is at the Much of our preparatory work on our negotiating heart of this Government’s ambitions to seize the programme is now beginning to come to fruition. We opportunities of being a free trading nation and have now launched trade deal negotiations with the US, becoming a truly Global Britain, whilst levelling up Japan, Australia and New Zealand - the agreements our country and delivering prosperity for all. from which will help generate new opportunities across all regions and nations of the UK. This is part Our departmental mission remains clear: to of our commitment to sign Free Trade Agreements encourage, equip and enable British exporters, with countries accounting for 80% of UK trade within to drive inward and outward investment; to forge the next three years. We are now turning our attention trade deals and open up markets around the world; to prospective accession to the Comprehensive and and to champion free trade on the global stage. Progressive Agreement for Trans-Pacific Partnership, This Annual Report allows us to look back on the which is a key part of our trade negotiations programme. achievements of the past 12 months, whilst re- focusing our intent as we continue to navigate the The world-class negotiating team we have created has fast-changing global economic environment. the right expertise and experience to broker agreements that deliver for the whole of the UK, and we approach Despite a difficult economic backdrop, global trade these talks with confidence and ambition. tensions and an increasing competitiveness, the UK has remained robust in attracting strong levels of investment. This is of course in parallel with our vital ongoing work In fact, the latest ONS data shows that the UK’s inward rolling over existing trade deals, which has seen us FDI stock reached its highest recorded level of successfully sign Trade Continuity Agreements with £1.5 trillion in 2018, with recent UNCTAD data 48 countries to date. That represents 74% of showing that we have maintained our top spot for trade in 2018 with countries with whom we were investment in Europe. seeking continuity. As a department, we are continuing to ensure that the In March, I had the honour of becoming the first Trade right financial, practical, and promotional support is in Secretary in almost half a century to represent the UK’s place to allow businesses to benefit from international sovereign voice at the World Trade Organization. We are export opportunities, and I am proud of the £24.4 billion committed to using our independent seat at the WTO to in Export Wins my department recorded in 2019-20. push for lower tariffs for UK exporters all over the world, From Welsh salami and water filters, to education as well being a vocal advocate for free and fair-trade fit and events, to supercars and soap, our expert for the future. advice and market access improvement work has Recently our work has, of course, focused on supported entrepreneurial UK businesses and brought overcoming the impacts of COVID-19. The pandemic amazing British products to an ever-growing band of has had a profound impact on the global economy, and global consumers. it is clear that trade will be more important than ever in We have been working to get the necessary helping the world to recover. The Department has been infrastructure ready to support UK trade after the instrumental in supporting the Government’s response – Transition Period ends, including the passage of the from procuring critical medical supplies from across the Trade Bill, which will establish the new Trade Remedies global market, to helping keep supply chains open, trade Authority. In the meantime, the Trade Remedies flowing, and businesses operating. Investigations Directorate has begun reviewing This work has made me even prouder to lead such an 43 priority EU trade remedy measures, which were energetic, dynamic and multi-talented department, and deemed important to UK industries, following a left me more convinced than ever that DIT possesses the Call to Evidence. focus, capabilities and expertise required to help the UK We recently launched the new UK Global Tariff, designed weather the economic challenges of COVID-19, and to with the UK economy in mind. This backs British shape our nation’s future economic success. businesses to compete on the world stage by cutting red tape and unnecessary barriers to trade, reducing cost pressures and increasing choice for consumers.


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    8 Department for International Trade Antonia Romeo Permanent Secretary, Department for International Trade


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    Annual Report and Accounts 2019-20 9 Permanent Secretary’s Statement Another year of significant progress in the The UK retained its strong position for Foreign Direct Department for International Trade as we continued Investment, reflecting DIT’s work promoting the to deliver a new trade policy for the UK, negotiated strengths of the UK economy to international investors. trade agreements and market access arrangements Tech investment in the UK remained particularly strong, with countries outside the EU, and promoted global increasing by 44% to over £10bn in 2019. In the last year, trade and inward and outward business investment. we have expanded our High Potential Opportunities DIT’s work remains at the heart of the Government’s programme to pinpoint emerging investment agenda to pioneer new trade deals, level up opportunities so that we target our activity accordingly, across every region across the UK, and promote and contribute to the Government’s levelling up agenda. Global Britain. The inaugural UK-Africa Investment Summit, held in the As we begin to operate the UK’s independent Trade UK in January, was a success. DIT played a central role Policy, our work this year included launching the UK’s in securing £6.5bn of commercial deals announced on Global Tariff regime; taking up the UK’s independent seat the day. This is an early step towards realising the UK’s at the World Trade Organization; continuing to negotiate ambition to be the investment partner of choice for Africa. and sign trade continuity agreements; and successfully Our commitment to staff engagement, and diversity removing market access barriers, including beef and inclusion, continued. I was pleased to see a 93% exports to the US. Our Trade Remedies Investigations response rate to our annual People Survey, the highest Directorate is now fully operational and working to yet, and an engagement score of 65%. Our D&I work protect UK businesses from unfair trade practices. We will continue as we ensure that our work supports the also built up the capability of the team in preparation for diversity, collaboration and inclusion agenda, particularly launching FTA negotiations (in May 2020). in supporting our colleagues from Black, Asian and Total UK exports rose to £690.7bn (31.1% of GDP), with Minority Ethnic backgrounds. goods exports at £365bn, and services at £326bn. DIT’s COVID-19 presented an unprecedented challenge, and work helped businesses across the whole of the UK I am proud of how the Department has responded. We explore global opportunities, with the highest growth rapidly rolled out a suite of digital tools and software rates for UK goods exports coming from Scotland and to support staff in working remotely, so we could Wales in 2019. Our export champions and advocates continue our work supporting business and helping played an important role in this, inspiring fellow the Government shape its response to COVID-19. Our companies to export. wellbeing network has played a crucial role in ensuring We made greater use of digital tools to help UK colleagues across the Department are supported exporters, and in 2019-20 published more than 230,000 during this time. export opportunities on great.gov.uk. We continued Our progress over the past 12 months was made to engage with business and governments around the possible by the enormous amount of work delivered by world, through trade missions, ministerial visits, and DIT’s growing network of over 4,300 people in the UK industry events. All of this work was supported by the and in 116 markets worldwide. It remains a privilege to credit support of UK Export Finance (UKEF). lead the Department. The GREAT campaign continued to underpin our trade promotion efforts worldwide. Notably, in 2019-20 we launched the refreshed GREAT Ready to Trade international marketing campaign, which was has been rolled out in 19 cities across 14 countries, promoting the UK as an independent trading nation.


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    Performance Report


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    12 Department for International Trade Department for International Trade Supporting businesses in all four nations of the UK, we work in: • 9 regions around the world • 117 separate markets • 197 individual locations North America Europe Eastern Europe and Central Asia South Asia China & Hong Kong Middle East, Pakistan and Afghanistan Asia Pacific Africa Latin America and the Caribbean


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    Annual Report and Accounts 2019-20 13 In 2019-20, DIT has continued to engage Overview directly with global investors and work with UK This overview section provides a summary of businesses to grow internationally and take our department, its purpose and structure, and advantage of our trading relationships. The the main issues and risks to the achievement Department has worked to open and develop of the Department’s objectives. Over the last markets, and support the Government’s ambition year, the Department’s work has been guided to level up the economy by attracting inward by the objectives listed in the 2019-20 Single investment to all parts of the UK and increase Departmental Plan; however, the Department has exports from every region. Through DIT’s now refocused its work onto new objectives for presence overseas and in the UK, the Department 2020-21. These are set out in the Department’s is unique in acting as a bridge between domestic Main Estimates for 2020-21, published on gov.uk1. and international policy and our growing expert global network brings in business intelligence of Our Mission international market access and regulatory issues. The Department for International Trade (DIT) helps In 2019-20, the Department has progressed work businesses to export, drives inward and outward to secure new trade deals for the UK, deepening investment, negotiates market access and trade our relationship with some of the advanced world deals, and champions free trade. economies and developing an ambitious trade programme with the economies of the future. By taking up our new independent seat at the Our Objectives World Trade Organization, DIT has established As an international economic department, DIT the UK’s role on the global stage in shaping a free promotes the UK across the world, works to and fair trading environment and supporting the grow UK exports from every region and enhance multilateral rules-based system. DIT is working our reputation as a top destination for foreign to increase new trading opportunities, dismantle investment. The Department uses an end-to-end barriers to trade and build a global trading structure to bring together policy, promotion and framework that underpins the Government’s financial expertise to break down barriers to trade ambition for prosperity and stability. and investment, access new markets, and works The Department’s current focus is supporting to ensure UK businesses are at the forefront of the Government’s response to the public health exporting opportunities. Now the UK has left the crisis as a result of COVID-19, both in the UK and EU, DIT is pursuing the country’s independent through our global network. DIT is working closely trade policy, working to deliver ambitious free with other departments to support UK businesses trade agreements that benefit businesses and to continue trading, to keep trade flowing and consumers and to ensure the UK’s role as a supply chains open. DIT is prioritising vital work champion of global free trade. to promote free trade and resilient supply chains to support the global economic recovery as the crisis passes. For 2019-20, the Department’s work was guided by the following five departmental objectives: 1. Support UK businesses to grow internationally in a sustainable way; 2. Ensure the UK remains a leading destination for international investment and maintains its number one position for international investment stock in Europe; 3. Open markets, building a trade framework with new and existing partners which is free and fair; 4. Use trade and investment to underpin the Government’s agenda for a Global Britain and its ambitions for prosperity, stability and security worldwide; 5. Build DIT as an effective international economic department where our people are expert, enterprising, engaged and inclusive. 1 https://www.gov.uk/government/publications/main-supply-estimates-2020-to-2021


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    14 Department for International Trade The Department for International Trade in 2019-20 £690.7bn 44,830 UK exports jobs created from DIT in 2019-20. supported investment (31.1% of GDP) in 2019-20. 237,846 export £24.4bn opportunities Export Wins published on in 2019-20. (expected value of supported great.gov.uk in 2019-20. exports over the next five years) £1,409bn £4.92bn UK outward Foreign value of DIT Outward Direct Investment FDI Wins in 2019-20. (expected value of supported (FDI) stock in 2018. investment over the next five years) £1,031m value of growth capital investment £1,521bn supported in 2019-20. UK inward (comprising venture capital and the GREAT FDI stock in 2018. Investors Programme)


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    Annual Report and Accounts 2019-20 15 Trade Continuity Publication of our Agreements successfully signed at time of publication Free Trade with 48 countries, Agreement negotiating objectives representing with the United States, 74% of trade and our scoping in 2018 with countries economic assessment. with whom we were seeking continuity. Completion of a public consultation on 1,238 market the UK Global Tariff access barriers with nearly 1,400 reported on our Digital submissions Market Access Service received and in 2019-20, with 115 of analysed from right those barriers already across the UK economy. resolved in full. Securing over Successful transition to an £6.5bn independent position at worth of the WTO since 1 February commercial deals - representing ourselves announced at and championing the the UK-Africa UK’s priorities. Investment Summit. 65% 30th in Stonewall’s UK DIT 2019 Workplace Equality Index 2020 - a jump of 71 places from People Survey our ranking in 2019, recognising engagement score. our work on LGBT+ inclusion.


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    16 Department for International Trade DIT’s Structure DIT is led by our Secretary of State and as • Global Strategy Directorate and the at 31 March 2020 was organised as follows: Ministerial Strategy Directorate include the Department’s work in support of • Global Trade and Investment contains national security and prosperity, Official Exports and Investment teams, which work Development Assistance, Trade Envoys to encourage UK businesses to export or and support for Ministers in setting and invest abroad, and support international delivering the Department’s strategy. companies to increase Foreign Direct • Digital, Data and Technology provides Investment (FDI) to the UK. Additionally, the digital services to support exporters they provide operational support to the and investors as well as the infrastructure international network and Her Majesty’s required for the achievement of Trade Commissioners (HMTCs), coordinating DIT objectives. across the overseas posts, UK regions and sectors, and DIT’s Defence and • Analysis, Business Services, Security Organisation. Commercial, Estates, Finance and HR provide the support structures and • Our overseas operations are led by nine resources required for the achievement HMTCs, each responsible for delivering a of DIT objectives, including the buildings Regional Trade Plan. and facilities management in the UK for • Trade Policy Group is tasked with the DIT workforce. opening markets across the world • Communications and Marketing includes alongside negotiating the UK’s new trading support for inward and outward trade arrangements and leading the UK’s interests missions, major trade-related events in supporting and strengthening the rules and the DIT elements of the GREAT based international trade system. It also Britain campaign. ensures the UK tackles unfair and damaging practices to protect industry. DIT also works closely with UK Export Finance (UKEF), the UK’s export credit agency, which has • The Trade Remedies Investigations a mission to ensure that no viable UK export fails Directorate (TRID) is the precursor to for lack of finance or insurance, while operating the Trade Remedies Authority, which will at no long-term net cost to the taxpayer. UKEF be established by the Trade Bill 2019-21 operates under its own Act of Parliament, under announced in the Queen’s speech on consent from HM Treasury and has its own 19 December 2019. The Trade Remedies Parliamentary Vote. It is a separate government Authority will be a new independent UK department but reports to the Secretary of State body which will investigate possible cases for International Trade, its management, strategy of dumped and subsidised imports and and operations are aligned with DIT, and the Chief unforeseen surges in imports in order to Executive of UKEF is line managed by determine whether a new trade remedy the Permanent Secretary of DIT. measure is needed to protect UK industries. • The GREAT Britain campaign works to showcase the best of what the UK has to offer to inspire and encourage people to visit, do business, invest and study in the UK.


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    Annual Report and Accounts 2019-20 17 DIT’s leadership structure The following represents the leadership structure of senior officials within DIT as at 31 March 2020. Permanent Secretary & Accounting Officer SCS4 Director General Director General Director General Chief Executive UKEF Chief Operating Officer Policy & Exports & Investment SCS3 SCS3 Programmes SCS3 SCS3 Director, Human Director, Ministerial Director of Director, UK Regions Director, Investment Resources and Organisational Strategy Communications Development SCS2 SCS2 SCS2 and Portfolio SCS2 & Marketing SCS2 Director, Finance & Director, Financial Director, Defence and Director, Global Strategy Director, Campaigns Business Services & Professional Security Organisation and Development & Marketing SCS2 SCS2 Services SCS2 SCS2 SCS2 Director, Digital, Data & Director, Healthcare, Life Cyber Security Chief Scientific Advisor Director, GREAT SCS2 Technology SCS2 Sciences and Bio SCS2 Ambassador SCS2 SCS2 Director, Capital Director, Commercial Director, Technology and Investment and SCS2 Entrepreneurship SCS2 Entrepreneurship SCS2 Director, Analysis Group Director, Energy and Director, Creative, & Chief Economist Infrastructure SCS2 Lifestyle & Learning SCS2 SCS2 Director, Change Director, Planning & HMTC China SCS2 Capability SCS2 & Hong Kong SCS2 HMTC HMTC Africa SCS2 North America SCS2 HMTC Latin America & HMTC Europe SCS2 the Caribbean SCS2 HMTC Middle East, Pakistan and HMTC South Asia SCS2 Afghanistan SCS2 HMTC Eastern Europe & HMTC Asia Pacific SCS2 Central Asia SCS2 Chief Trade Negotiation Adviser & 2nd Permanent Secretary SCS4 Director General Trade Policy Group SCS3 Director, Negotiation Director, Asia DIT Legal Director, Bilateral Planning & Capability & Australasia SCS2 Trade Relations SCS2 SCS2 Negotiations SCS2 Director, Americas Director, Trade Remedies Director, Policies SCS2 Neg. and Stakeholder Implementation SCS2 Engagement SCS2 Director, Controls Director, Continuity, Director, Remedies, EU Wider Europe Neg. and Trade Policies SCS2 Exit & WTO SCS2 Development SCS2 In response to COVID-19, the Department also established a Gold-Silver-Bronze command structure and Departmental Operations Centre, led by the Director General, Chief Operating Officer. The Department’s policy response and input into the cross-Government Ministerial Implementation Groups was led by the Director, Ministerial Strategy and Portfolio.


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    18 Department for International Trade Context: Notable Issues and Risks The main challenges to delivery of the Department’s strategic objectives are driven by Trade Policy and EU Exit our new work establishing the UK’s independent Uncertainty over the timings and basis of the UK’s trade policy as we prepare for the end of the EU departure from the EU and the resulting lack of Transition Period and the geopolitical risks and clarity over the new trading environment caused opportunities this entails. The impact of COVID-19 challenges for businesses in their preparations. on public health and the global economy are Over the course of 2019-20, DIT was required also both critical issues that the Department is to be fully prepared for a range of EU Exit dates playing a central role in Government to tackle, and to provide the necessary support and both in the immediate term and in relation to the preparation for businesses and mitigate this risk. future trade agenda. DIT successfully delivered all elements of its EU Exit preparations by 31 January 2020, prior to Global Economic, Trade and which the Department was fully prepared for each of the potential exit dates in 2019. Throughout Investment Outlook the period, DIT was able to develop and deploy DIT is working to deliver an ambitious new full policy and operational plans for a range international trade agenda for the UK. of scenarios, feeding these into wider cross- As the Department works to promote British Government efforts where appropriate. Over trade and investment across the world it will be the course of the year, DIT was able to re-profile operating in an uncertain global context, subject its preparations in line with the Government’s to geopolitical risks and opportunities often evolving position. From August 2019, this activity outside its control. As the Transition Period was accelerated to make maximum use of the comes to an end and DIT implements the UK’s time available to support businesses to prepare independent trade policy, remaining cognisant of for the UK’s Exit from the EU. these global risks, and adapting accordingly, will The Department is now working to deliver a be key to delivering the Government’s ambition for number of projects ready for our future trading prosperity and stability. environment after the Transition Period ends, With the maturing of new technologies and whilst supporting businesses to adapt to and increasing global connectivity, the future trade capitalise on the new trading landscape. DIT’s and investment landscape is expected to become preparations include implementing the UK’s more decentralised. Trade and investment are permanent Most Favoured Nation tariff policy also likely to be impacted by global economic and our own Tariff Suspensions regime; and downturn, pipeline disruption, and reduced ensuring the UK’s system of export and import investor confidence as a result of COVID-19. controls continue to operate effectively. DIT also The United Nations Conference on Trade and established robust and appropriate procedures Development’s (UNCTAD) World Investment in response to the breaches of the undertaking Report 2020 predicts a severe drop in global given to the Court of Appeal in respect of licences FDI (Foreign Direct Investment) flows by up to for export of arms or military equipment to Saudi 40% in 2020, including a 30% to 45% decline in Arabia for possible use in the conflict in Yemen. flows to Europe. The World Trade Organization To ensure the UK is fully protected in trade (WTO) expects that global trade volume will fall by remedy measures as an independent member between 13% and 32% in 2020. The Department of the WTO, the Department is prioritising continually gathers and prioritises information on preparation of the necessary infrastructure, current issues and future global trends through including establishing the new Trade Remedies tools such as horizon scanning, scenarios and Authority and the passage of the Trade Bill, as futures thinking to inform its work.


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    Annual Report and Accounts 2019-20 19 as well as working cross-Whitehall to implement to fresh challenges for DIT in supporting the the Ireland and Northern Ireland Protocol. DIT wider Government response. Towards the provides regular updates to UK businesses on EU end of 2019-20 at the start of the outbreak, Transition developments, as well as promoting DIT refocused its work to contribute to the exports and securing inward investment. COVID-19 response. The Department put in place structures to address the immediate impacts The Department continues to finalise Continuity of COVID-19, including establishing a delivery Agreements to come into force at the end of team to support the sourcing of international the Transition Period, to ensure continuity for medical supplies, redeploying its overseas UK businesses and trading partners. Upon network and providing critical support to entering the Transition Period, DIT has been citizens and business. Through its delivery of the actively managing the risks around trade Government’s international sourcing agenda, DIT negotiation activities by establishing strong is now seeking to ensure a strategic approach to programme controls and embedding robust sourcing and securing critical medical supplies governance, performance and risk procedures. from the global market. DIT is using internal DIT is also closely involved in cross-Whitehall assurance and cross-government support coordination efforts to effectively align strategy for from the Government Internal Audit Agency and trade negotiations. Cabinet Office’s COVID-19 Fraud Team to ensure the Government’s resources are appropriately Capacity and Capability deployed. DIT is also leading ‘Project Defend’, The challenges around EU Exit and preparing established to identify vulnerabilities in global for the end of the Transition Period, the rapid supply chains and create an actionable strategy deployment of staff to the COVID-19 response for building resilience in non-food critical supply and a changing global economic landscape has chains. More broadly, the Department is heavily stretched the capacity and capability of DIT to involved in Government-wide plans to deliver a deliver across its objectives. DIT has responded stronger and more resilient economy as the UK to this by adopting a range of flexible resource navigates towards recovery. practices across the business. To carry out its This refocussing of work and staff put a strain ambitious trade agenda and enable DIT to better on delivery of other DIT activities. Through prepare for future pressures on its capacity and prioritising of work and careful management of capability, the Department has carefully managed resources, the Department sought to ensure its approach to hiring and retaining the essential as far as possible that it continued to deliver on skills and experience it needs to deliver, whilst domestic and international priorities, so that the building expertise through the International Department is in a position to realise its longer- Trade Profession. term objectives once the peak of the crisis has Operating globally, in varied contexts and passed. With the uncertainty and stress resulting climates, presents a challenge to cohesive from changes to everyday life during this period, implementation of DIT’s work and has required us the wellbeing of our staff remains a critical priority. to look at how we have robust workforce planning DIT has implemented and refined its business processes that allow the Department to react continuity arrangements to manage the impact quickly to shifts in the Government’s priorities. of the outbreak. We have enabled staff to stay This can be expected to be a continued challenge home and continue their work in accordance with as DIT responds to shifts in the global economic the Government’s guidelines, while progressing outlook and trading landscape. To facilitate more work in key areas, such as the virtual launch of effective work between DIT’s internationally the UK-US Free Trade Agreement negotiations. dispersed staff, the Department has implemented DIT’s overseas network have adapted to the broader changes to working practices to allow crisis and remained responsive to risks, as well us to operate on the global stage as One DIT, and as contributing to the COVID-19 response work have established a strengthened approach to through business intelligence sharing and have future workforce planning. also provided substantial support to the cross- Government effort to repatriate UK nationals overseas as part of the immediate crisis response. COVID-19 A more detailed statement on the main issues The outbreak of COVID-19 presented a unique and risks that could impact on the delivery of set of challenges for the Government. As objectives in our Single Departmental Plan is set well as putting significant pressure on DIT’s out in the Governance Statement. own staff and delivery plans, it has given rise


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    20 Department for International Trade Performance Summary Objective 1 Support UK businesses to grow internationally in a sustainable way.l UK exports have seen near consistent growth DIT’s support to businesses is central to this over the past decade, but COVID-19 presents ambition. The needs of businesses are not significant challenges for exporters and the long uniform, with less experienced exporters facing term effects of the economic shock are unknown. different issues from those that are seasoned The International Monetary Fund projects that exporters. DIT provides tailored support to emerging markets will be less heavily impacted businesses of all sizes to help them overcome the than advanced economies, and that recoveries barriers that are holding them back and achieve will be stronger for emerging economies. sustainable growth through international trade. DIT continues to support the expansion of UK DIT works to connect businesses to encourage exporting globally, with an increasing share exporting globally. DIT staff use their local of exports heading for destinations outside expertise, networks, and Government-to- Europe. In 2019-20, UK exports to non-EU Government (G2G) relationships to reduce market countries saw growth of 9.3%, to reach £398.8bn. access barriers for UK businesses and connect At the same time, UK exports to the EU fell by businesses with overseas buyers. Through 3.2%, to £291.9bn. the GREAT International Trade campaign, DIT promotes the UK brand abroad and showcases The UK is well placed to seize these the UK’s strengths to international buyers. opportunities. According to UNCTAD, The Department’s global presence is extended we were the world’s sixth largest through overseas delivery partners that work exporter of goods and services in 2018. alongside our international network. These We have a global reputation for partners help UK businesses to export by giving innovation, a skilled workforce and practical and cultural advice on developing a well-regulated economy. exports, and helping businesses meet overseas buyers. Following the publication of the Government’s Export Strategy in August 2018, DIT is focused In the UK, our regions team provide international on delivering the challenging, long-term, support for small and medium-sized enterprises exporting ambition for the UK, to strengthen our (SMEs) at a local level to drive growth and position as one of the 21st century’s great trading prosperity. This is accomplished through our nations and raise exports as a percentage of network of approximately 275 International Gross Domestic Product (GDP) to 35%. Trade Advisers (ITAs) who offer one-to-one support to businesses. DIT continues to support UK businesses globally to achieve their full potential. We are already DIT’s sector teams work to maximise the number making progress on this ambition: in 2019-20 total of export ready UK companies. They work directly exports increased by £24.2bn to £690.7bn. This with industry and the international network to is equivalent to 31.1% of GDP, a 0.4 percentage facilitate collaboration between UK businesses, point increase from 2018-19. co-ordinate G2G engagement and support trade missions. DIT also runs the E-Exporting and Export Opportunities programmes, connecting UK businesses to global marketplaces and overseas buyers.


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    Annual Report and Accounts 2019-20 21 Following a commitment in 2018-19 to develop DIT also works through UK Export Finance (UKEF) and facilitate a community of export champions, to ensure trade and export finance, as well as who could provide peer-to-peer support and insurance, is available to exporters. DIT and UKEF expertise for UK businesses to export, there are enable exporters to access the advice, practical now 397 individuals from businesses who have assistance, and finance needed to help build the taken on this role (as at 31 March 2020) and a UK as an exporting nation. further 1,200 export advocates who share their exporting experiences and top tips through social media channels. DIT Achievements In February, DIT also jointly launched with HM Treasury, the Ministry of Housing, Communities and Local Government and the • DIT Africa hosted the inaugural UK-West Department for Transport a consultation to inform Africa Agritech summit in Nigeria bringing the Government’s Freeports policy. Freeports are together business leaders, investors and secure customs zones located at ports where senior executives from across West Africa. business can be carried out inside a country’s The summit will be held annually in a land border, but where different customs rules different West African country. can apply. This can reduce administrative burdens • DIT successfully assisted FITCH Brew and tariff controls, provide relief from duties Co. with their export strategy and the and import taxes, and ease tax and planning business has already seen their cold-brew regulations. Given many sectors with an interest drinks reach consumers in France, Kuwait, in the Freeports policy have been affected by Bahrain and Saudi Arabia. The new listing COVID-19, the decision was taken to extend the with distributor KeHE, which supplies more consultation from 20 April until 13 July 2020 to than 30,000 stores across North America, give stakeholders more time to submit their views. will also see the products released online. DIT’s support for UK businesses to build and With the assistance of their ITA during the strengthen trading partnerships with new COVID-19 pandemic, the company were also customers and markets directly contributes able to access the Government’s Bounce to Sustainable Development Goals 8 & 17 and Back Loan Scheme. With two new products positions UK companies to benefit from new currently in development, plans are already opportunities2. Increased trade, achieved through underway for the company to enter more DIT’s export support activity, is linked to increased markets. Co-founder of FITCH Brew Co., productivity, job creation and prosperity, at home Andy Deeley, stated that ‘our International as well as abroad. Trade Adviser has provided fantastic Trade with developing countries is an effective support over the past two years. Having method of reducing poverty. Supporting UK worked on this agreement for the past businesses to build trade links with developing 12 months, we’re now incredibly excited to countries through trade promotion, outward be entering the US market which offers us Foreign Direct Investment (FDI) and integration an unparalleled opportunity.’ into global value chains, empowers developing • DIT Automotive Team and Northern countries to build their production of tradeable Powerhouse team supported Liverpool- goods, stimulating economic growth, reducing based supercar manufacturer Briggs poverty and driving job creation. In addition to the Automotive Company (BAC) to secure general benefits, DIT’s export and outward FDI new Export Wins to the United States activity is an integral part of delivering on specific and Hong Kong to the value of £20m. development ambitions as described under DIT’s core Objective 4, including the UK being the investment partner of choice for Africa. 2 Goal 8 refers to promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all; Goal 17 refers to strengthening the means of implementation and revitalising the Global Partnership for Sustainable Development.


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    22 Department for International Trade • DIT provided the specialist HR and the Philippines and Indonesia primarily recruitment company, Jackson Hogg, by assisting the company with navigating with detailed advice on entering the US and overcoming regulatory challenges in and German markets, as well as practical respective markets. To date, total Export support connecting the company with the Wins for TransferWise across Asia Pacific German Honorary Consul to facilitate useful amount to £275m, including Australia’s introductions. The ITA also arranged local Export Win valued at £242m. funding to help Jackson Hogg make • DIT joined up with Alvis Car Company a business development trip to the to help them apply for a SME international United States. As a result, the company growth project grant from the European has secured new accounts in the US and Regional Development Fund, in order to Germany expected to be worth more than exhibit at the Automobile Council in Tokyo £500k over the next five years. (a classic car show). The company’s • DIT Asia Pacific helped UK-based FinTech successful application led to a signed giant, TransferWise, expand into multiple agreement with the distributor in Japan markets across Asia Pacific including worth £3.7m across the next five years. Japan, Singapore, Malaysia, Thailand, What’s next? DIT is developing a new Export Strategy to ensure • Continuing to work with UKEF and the that the Government has the right financial, British Business Bank to ensure that access practical and promotional support in place for to finance does not act as a barrier to firms to recover from COVID-19, adjust up to exporting for SMEs; and through the Transition Period, and to benefit • Working to keep trade flowing, and ensure from new trading relationships. In so doing, we exports policies and measures support the will drive clean growth, foster a dynamic and development of the UK’s border; productive economy, support jobs, and level up every region of the UK. • Supporting firms to understand and realise the benefits of new trade agreements; We will build on this by continuing to improve the services available to businesses through: • Promoting and driving clean growth among UK exporters; and • Transforming our business support, primarily • Working across Government to build through great.gov.uk as a digital platform international trade considerations into wider that meets the needs of UK exporters and Government policy. supports business growth; • Playing a key role in the Government’s levelling up agenda by directing support to areas that need it most, while building an exporting movement for the whole of the UK through bespoke, localised services;


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    Annual Report and Accounts 2019-20 23 Exporting is GREAT campaign The Exporting is GREAT campaign aims to inspire In the National Survey of Registered Businesses business leaders to take up exporting and export published last year, it was reported that 17% further, and in doing so help drive down our trade of those who recognised the campaign when deficit, increase and protect jobs, help build a prompted during interview reported that it had resilient economy, and strengthen our position driven them to take or consider taking action. as one of the 21st century’s great trading nations. This equates to between approximately 18,500 Last year the campaign’s focus moved towards and 33,000 businesses (with an annual turnover supporting businesses to get ready for the UK of £500k+). Campaign recognisers were also leaving the EU. This year, with COVID-19 having more likely than non-recognisers to be interested a significant impact on businesses and trade, the in information and business support services campaign will evolve to play an important role in to assist with exporting. 60% of recognisers supporting the recovery for businesses and the were either ‘very interested’ or ‘fairly interested’, economy post COVID-19. compared to 46% of non-recognisers. The gap between the two groups expanded relative to As of January 2020, the GREAT campaign results published for 2017. was active in 144 countries around the world. On 1 February 2020, the campaign was also brought under a refreshed overarching trade promotion campaign the GREAT Ready to Trade (RTT) international marketing campaign.


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    24 Department for International Trade DIT’s impact Pan American Games 2019 DIT provided end-to-end support to the Peruvian government to prepare to host the 2019 Pan American Games under a first-of-its-kind agreement, signed in 2017, which sold UK Civil Service expertise in a government to government (G2G) services deal. The Games are the third largest multi-sport event in the world, bringing together athletes from nations across North and South America to compete in 39 different sports. The event saw 175,000 international tourists visit Peru, adding an estimated half a million domestic visitors who attended 419 events, contested by 6,680 athletes from 41 nations. The deal saw DIT officials working closely with the Lima 2019 Organising Committee, helping it deliver the infrastructure and organisation of the games on-time and on-budget. DIT led UK efforts in London, with a team of UK subject matter experts, with experience running over 100 major sporting events including the London 2012 Olympics, supported by a cross-departmental team of functional experts. A permanent infrastructure team based at the British Embassy in Lima also worked directly with Peruvian officials. Since the G2G agreement was signed in 2017, British firms won over £100m of work through involvement with Lima’s games. Two leading UK firms, Mace and Pattern architects, have established permanent offices in Lima. The UK has since been selected as Peru’s delivery partner to rebuild crucial facilities, such as schools and hospitals, affected by the El Niño phenomenon in 2017 in Peru. The UK Delivery Team is represented by the strategic partners Mace Limited, Arup Limited and Gleeds International Limited. By the time of conclusion of this work, and at no net financial cost to the Department, this G2G delivered an important enhancement of the legacy of London 2012, enriching the lives of the people of Peru, as well as a valuable G2G partnering model, which UK plc can use to establish and strengthen trade relationships elsewhere.


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    Annual Report and Accounts 2019-20 25 DIT’s impact World Cup Qatar 2022 DIT has supported UK companies to win exports in connection with the FIFA 2022 World in Qatar since the country was awarded the tournament in December 2010. The bid to host the iconic global sporting event was part of a wider strategy of development in Qatar including major infrastructure projects and societal reforms. UK companies have worked on all aspects of this development and delivery of the 2022 World Cup and beyond to Vision 2030, including the major upgrade of the international airport - a global connections hub; an ambitious renovation and development programme for the Metro system; and the design and construction of iconic sports stadiums and venues. The DIT Sports Economy team has worked closely with staff at the British Embassy in Doha to support companies pursuing opportunities, up-skill British businesses on the Qatari market and wider business environment of the Middle East, and connect UK companies directly with key stakeholders. This success has been a direct result of the breadth and depth of the Embassy’s network in Qatar with government ministries, key stakeholders and the Organising Committee for the tournament. Through the British Embassy in Doha, DIT has run an extensive engagement programme over the last few years including ‘Meet the Buyer’ events, conferences, workshops and trade missions – the most recent mission in February 2020 was a joint programme with DIT’s Defence & Security Organisation and involved almost 30 UK companies. The UK has consistently been positioned as partner of choice for delivering a safe, secure and successful World Cup in 2022 and a reliable partner for Qatar. The teams in the UK and Qatar will continue to develop an extensive engagement programme to maximise opportunities for UK companies around the World Cup and further activities around Vision 2030.


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    26 Department for International Trade Objective 2 Ensure the UK remains a leading destination for international investment and maintains its number one position for international investment stock in Europe. DIT’s role is to champion and enhance the UK’s DIT has supported this achievement by providing reputation as a world-leading, open, and business tailored propositions, intelligence and insight friendly destination for foreign investment. We to meet specific investor needs that make the aim to maintain the UK’s number one position for business case for why the UK is the best place investment stock in Europe. to invest versus other competing jurisdictions. These services include: information on As we move into 2020-21, it is becoming investment opportunities and the UK business increasingly clear that the COVID-19 crisis will environment; delivering practical support to have a profound impact on both the global enable investors to establish their operations in economy and investment flows, as businesses the UK; and supporting existing investors through focus on protecting cash flows and the resilience initiatives such as the Strategic Relationship of their current operations. The United Nations Management Programme, both in the UK and Conference on Trade and Development’s overseas, working with colleagues across (UNCTAD) World Investment Report 2020 predicts government, in London, UK regions and devolved a severe drop in global FDI (Foreign Direct administrations. This suite of services helps Investment) flows by up to 40% in 2020, including investors prosper and succeed, which in turn a 30% to 45% decline in flows to Europe. leads them to invest further in the UK. DIT has been at the forefront of responding to the crisis, from securing vital equipment for the NHS to helping businesses (including foreign-owned businesses that we account manage) to navigate DIT Achievements the range of financial support on offer from the Government. We will continue to prioritise support as the UK overcomes this unprecedented In 2019-20, DIT and its local partners supported challenge, including promoting investment the delivery of 1,449 inward FDI projects opportunities that have arisen from the crisis, for (a 0.9% increase on the 1,436 projects in example in vaccine manufacturing. 2018-19) with firms establishing or expanding their presence in the UK, across a range of sectors. However, conversely, much of 2019-20 has been DIT also supported institutional investors, large typified by the resilience of the UK economy in corporates, venture capital firms, high net worth attracting investment in the context of contracting individuals and other capital investors to invest in global flows, increasing tensions from escalating local energy, infrastructure and housing projects trade wars, domestic uncertainty until our across the UK. The FDI projects supported by DIT path of exit from the EU became clear, and an are estimated to have generated 44,830 new jobs, increasingly competitive market place. while safeguarding 7,815. The number of new jobs generated shows a reduction of 14% compared to the year before. In 2019, the UK attracted an additional $59 billion in inward FDI and retains the largest inward FDI stock in Europe, according to UNCTAD3. 3 UNCTAD data used to allow international comparisons. Exact figures may differ from those provided by the ONS, presented elsewhere in this report.


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    Annual Report and Accounts 2019-20 27 Building on the progress last year, DIT has entrepreneurs from over 30 countries continued in 2019-20 to target government to bring their innovative, fast growth promotion and advisory support to the investors businesses to the UK, 26% of which landed that would have the greatest positive impact for outside of London. the whole of the UK economy, ensuring we use • DIT worked closely with long term investment to drive regional growth, supporting international institutional investors including levelling up of the UK economy. Sovereign Wealth Funds, pension funds and Achievements this year in supporting that real estate investor-developers to support approach include: the deployment of capital into housing projects, clean energy and improved • Expansion of the High Potential infrastructure. From large regeneration Opportunities programme, working closely schemes to nimble modular housing with devolved administrations and local developments, and capital investment to partners to identify emerging clusters, fund improved electric vehicle charging sub-sectors, supply chain gaps and other infrastructure, our work with institutional investment opportunities from across the investors has contributed to regional whole of the UK which have great potential economies. Additionally, DIT sources for prospective FDI investors and which live capital investment opportunities in would benefit from targeted promotion by real estate, regeneration, energy and DIT. Through this programme DIT launched infrastructure from across the UK for 13 High Potential Opportunities this year, promotion overseas. There are currently ranging from Aquaculture in Dorset to 76 large capital investment opportunities Aerospace in Northern Ireland: packaging promoted on great.gov.uk4. these opportunities up into commercial • DIT Growth Capital secured £1,031m of propositions to promote to companies investment from international high net worth overseas, supported by company individuals and venture capital investors targeting and digital marketing. In 2019, we into a range of sectors. DIT also held a secured three investments from European venture capital showcase and produced investors against our first three pilot High sector “Lookbooks” profiling companies Potential Opportunities, creating 60 new from the fintech, artificial intelligence and high-quality jobs. life sciences sectors seeking international • DIT continued to work with colleagues in capital. We have already achieved our government, local and industry partners to five-year ambition from the 2017 patient implement policy that reduces barriers to capital review, supporting over £1 billion investment and ensures the UK continues of venture capital investment into the UK. to improve its business environment, which This investment will strengthen the ability is fundamental in attracting investors. For of innovative firms to obtain the long-term example, DIT was a key partner in delivering ‘patient’ finance they need to scale up. the Post Study Work Visa, helping the • Having embedded new metrics into UK retain overseas talent once they have operational objectives, plans and completed their studies in the UK. performance reporting, DIT improved further • It is crucial we have the global capability our econometric modelling for measuring the to engage with business and secure contribution of FDI projects to UK economic investment. The year saw the successful output (Gross Value Added). The updated launch and expansion of the FDI Academy approach, which takes into account a range – a training model that supports DIT staff to of economic variables such as capital develop the skills and capabilities required invested and jobs created, allows us to more to operate effectively in the changing effectively prioritise the projects we support, investment climate. ensuring we target investments that will have • Our innovative Global Entrepreneurship the greatest impact across the UK. Results Programme, which partners with a network on this basis are not yet available: further of successful entrepreneurs across a range information on the updated methodology will of sectors, enjoyed significant success be published in due course. in 2019-20 and exceeded its targets by attracting 89 internationally mobile 4 Source: https://www.great.gov.uk/international/content/opportunities/


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    28 Department for International Trade What’s next? Given the current global economic challenges, • Negotiating future trade agreements in a way DIT will be crucial in securing investments into the that will deepen our economic relationship UK that both reduce the impact of the COVID-19 with important sources of investment crisis in the short term and accelerate the UK’s including the US, Japan and Australia. recovery and prosperity beyond that. We will These partnerships will be key drivers in undertake this challenge by: levelling up the UK and securing prosperity for towns and cities across the UK. • Focusing on responding to the COVID-19 • Playing a central role in the Government’s crisis and prioritising immediate business levelling up agenda, working with other support where it is needed most and government departments to identify and preparing our response, for example in promote areas across the UK that could our Sector Recovery Strategies - the benefit from overseas investment. first of which was launched in June 2020 detailing new measures to boost digital • Expanding the High Potential Opportunities trade and help turn the UK into a global programme through sourcing up to tech powerhouse. 25 new High Potential Opportunities that are aligned to Government’s strategic • In parallel, we are looking at what longer- priorities will support this agenda. term shifts the Government can adopt to The programme, built on local engagement, retain and enhance our world-leading status is key to drive investment towards the in FDI attraction and retention. Our plans sections of the economy and communities for how we promote and facilitate foreign that will put the UK at the forefront of the investment in the UK will put the investor industries of the future. at the heart of our thinking, enable a whole government approach to enhance the UK’s • In the year ahead, aiming to build on business environment, transform our offer our productive relationships with capital to investors and upgrade our operational investors to highlight exciting regional model accelerating the economic recovery opportunities which align with the from the COVID-19 crisis and further sustainable and environmental, social building prosperity for the UK. For example, and governance objectives of institutional in enhancing our promotional model we investors. With respect to growth capital, are focusing on: we are expanding our suite of ‘Lookbooks’, with an estimated total investment value - Appropriately serving the broad range of of £500m, continuing to develop capability investors based on their value, and the across DIT on attracting venture and complexity of their requirements; private investments. - Creating a competitive advantage by being ‘intelligence’ led – targeting the right investors, with the right offer and via the right person; - Leveraging data and technology to create a seamless investor experience and maximise the effectiveness/efficiency of our staff.


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    Annual Report and Accounts 2019-20 29 Invest in GREAT Britain & Northern Ireland campaign Invest in GREAT Britain and Northern Ireland has evolved to become the UK Government’s flagship international marketing campaign for attracting inward investment. As referenced on page 23, the campaign was brought under a refreshed overarching trade promotion campaign the GREAT Ready to Trade (RTT) international marketing campaign on 1 February 2020, bringing together propositions to both international trade buyers and investors. The campaign has been rolled-out across 19 cities in 14 countries. Ready to Trade demonstrates to international buyers and investors that the UK is ready and able to trade with them post-EU Exit, encouraging more inward investment and making clear the UK’s strengths. This multi-channel campaign is based on insight and fully tested propositions. It includes Out-Of-Home (billboards), digital and print in important locations across the world and international press advertising. This is supported by the distribution of high quality relevant content across digital and social channels, engaging a target audience of senior business decision makers and driving traffic to the great.gov.uk international website where users can see what the UK has to offer and access services and support to realise their business growth ambition. Highlights in 2019-20 included: • Receipt of over 8,500 enquiries from • Multiple media partnerships with the potential investors, exceeding our stretch Financial Times, CNBC, CNN, The target and converting 432 of these to Economist, New York Times, Bloomberg, qualified FDI leads. Reuters and Nikkei (Japan only). • The launch of the UK Investment • The campaign worked closely with overseas Prospectus, which provides insights into: posts on milestone events such as the Tech Rocketship Awards, the Sustainable - the growth of UK sectors and which Fast Track UK Awards and GREAT geographic regions are best suited to Entrepreneur Games. These activities international businesses; aimed to link leading overseas entrepreneurs - UK tax, incentives, talent, labour and and start-ups with the UK’s investment innovation information to help draw ecosystem and opportunities. South comparisons with other European and Korea Tech Rocketship Awards secured international markets; and 57 investment leads, whilst Japan Tech - UK Industrial Strategy and how Government Rocketship Awards secured 74. Turkey’s is supporting overseas businesses in driving GREAT Entrepreneur Games secured national skills, industries and infrastructure. 125 applications and 280 applications were submitted for Europe’s Sustainable Fast • Launch of the Sustainable Fast Track UK Awards. Track UK Campaign to promote and In 2020-21, GREAT Ready to Trade will build on its support European companies with great early success to date with a campaign supporting sustainability products or services to start Regional Trade Plans and activities across all nine their business in the UK and grow globally. DIT international regions each led by a HM Trade • Invest in GREAT digital campaigns for Commissioner. Priority markets will be targeted six new High Potential Opportunities within each region, which will include areas that promoting propositions in the UK support post-COVID economic recovery, with rail infrastructure, high productivity key trade and investment sector propositions food production and lightweight presented across relevant local media channels structures manufacturing. throughout the year. This will be augmented by local GREAT branded events and initiatives.


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    30 Department for International Trade DIT’s impact NVIDIA’s Artificial Intelligence Technical Centre in Reading The US-owned high-performance computing company, NVIDIA, is setting up a new Artificial Intelligence (AI) Technical Centre in the UK and expanding commercial operations. The centre, in Reading, will house 17 new AI specialists and allow the company to refine their service offering to clients whilst becoming a leader in emerging technology and associated vertical markets. DIT has supported the company by engaging them in AI programmes and initiatives, associated funding opportunities and connecting them to networking opportunities, which will allow them to navigate more easily the AI sector in the UK and beyond. Key account management yielded results with Intas Pharmaceuticals Intas Pharmaceuticals, a global Indian Pharmaceuticals company, through their subsidiary Accord Healthcare Limited, are the largest supplier of generics to the NHS in England by volume. After a few years of site acquisition and capital investment into the UK, their latest recorded investment was at their Fawdon manufacturing site in Newcastle upon Tyne. Incorporating capital expenditure of up to £12m and hiring 50 new staff, this investment is creating a new packaging line for imported sterile drugs and expanding the firms sterile filling capability - all part of a supply chain resilience program for critical medical supplies. DIT has relationships with both Intas Pharmaceuticals and Accord Healthcare in India and the UK as a key account managed company. Assistance has been with connectivity and networking for their site leadership and strategic operations function. This has focussed on raising a national profile within government for a relatively new player, sector engagement and fostering local dialogue with Local Enterprise Partnerships and local authorities to help with recruitment, site planning, and function promotion.


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    Annual Report and Accounts 2019-20 31 Modular housing by BoKlok In 2019-20, BoKlok announced three investment projects that amounted to 375 houses in Worthing, Bristol and Peacehaven in East Sussex. BoKlok, a residential project developer, operates in Sweden, Norway and Finland and have completed over 11,000 homes to date. Boklok are a joint venture between the furniture retail company IKEA and the construction company Skanska. DIT connected BoKlok with senior leadership within Homes England, and also facilitated introductions to relevant local authorities. The project meets the aims of the Government’s Construction Sector Deal to provide better homes that are cheaper to run; smarter and safer buildings; as well as lower emissions and cleaner air. Sustainable Fast Track UK Campaign DIT Europe implemented the Sustainable Fast Track UK Campaign to incentivise European businesses with sustainable products and services to use the UK as a platform to access green finance and to enter new high-growth markets in developing overseas regions, such as Africa. During 2019-20, DIT FDI teams across 25 European markets targeted companies that offer sustainable products or services aligned with the UN Sustainable Development Goals to drive economic growth, build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation. DIT Europe worked with several sustainability multipliers to provide access to the UK sustainability community and insight into major projects available to UK business in high-growth developing markets. The final Sustainability Fast Track Awards were granted to six innovative European companies at a virtual event in March where the participating companies were also matched with sustainable investment fund managers. Post COVID-19, a number of European companies will target the UK as their next expansion market.


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    32 Department for International Trade Objective 3 Open markets, building a trade framework with new and existing partners which is free and fair. DIT has primary responsibility across Government • Market Access: DIT has continued to work for delivering the UK’s independent trade policy. with a range of countries to explore the best In the run up to the UK’s exit from the EU on ways to open markets outside of formal 31 January 2020, we developed a coherent trade trade negotiations and enhance market policy based on our economic strengths, forging access for UK exporters. Through Joint and deepening relationships with trading partners Trade Reviews (JTRs) and Joint Economic and preparing to operate as an independent and Trade Committees (JETCOs), DIT is trading nation. strengthening bilateral trade relations and opening dialogues. • Setting up our trade policy infrastructure: We have an ambitious trade policy and We are also committed to implementing negotiations programme, including Free trade remedies policy to support UK Trade Agreements (FTAs), championing industry through the Trade Remedies the World Trade Organization (WTO) Authority and to develop capability and rules-based system, and securing to seek country-to-country trade market access wins. disputes resolution. This work includes: DIT Achievements • Negotiations on Free Trade Agreements: We are working to sign ambitious trade agreements with the US, Japan, Australia • Now we have left the EU, we can take and New Zealand. We are also seeking forward our own independent trade policy agreements to replicate the effects of EU for the first time in over 45 years. Part of trade agreements as far as possible so that independent trade policy comes with that UK businesses and consumers can establishing our Most Favoured Nation still benefit from their provisions after the (MFN) tariff schedule, a policy area Transition Period. co-owned with HM Treasury. DIT has run a public consultation on the UK Global • WTO and Multilateral: We are using our Tariff and received and analysed nearly independent voice at the WTO to work with 1,400 submissions from right across the our trade partners, including our partners UK economy. We have worked with HMT in the G7/G20 and the Commonwealth, to and with departments across the UK strengthen the multilateral system. It is more Government to prepare the final schedule important than ever that we work together to ensure it reflected multiple interests. with our allies to step up to the challenge We announced the UK Global Tariff on of COVID-19, enhance the credibility of 19 May 2020, giving business and the WTO and to lead on key aspects of individuals time to prepare for the change in transitioning the system to the next stage the UK’s tariff rates from 1 January 2021. of its development. • Under the Trade Agreements Continuity (TAC) programme, we successfully concluded and signed trade continuity


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    Annual Report and Accounts 2019-20 33 agreements with 48 countries, representing • In March, we took the important step of 74% of the trade in 2018 with countries publishing our UK-US FTA negotiating with whom we were seeking continuity5. objectives and our scoping economic Trade with these countries accounted for assessment. This sets out the potential long- £110 billion in 2018. The current Continuity term impacts of a bilateral trade agreement Negotiations programme is building on this with the US and includes the Government’s achievement, progressing work to transition response to the public consultation on remaining continuity agreements. a UK-US FTA. This was a critical step in progressing the Government’s ambitious • We have established ourselves as a manifesto commitment on new FTAs. member of the WTO outside of the EU. We have started to intervene on issues, • In support of our commitment to open up notify, and negotiate in our own right. international markets, work has progressed We have established the UK’s baseline at pace to identify, analyse, prioritise and terms of trade (‘schedules’) with the rest address individual market access barriers of the world separate from the EU. This faced by UK business, and ensuring has been the culmination of three years successes are effectively communicated so of continuous and unprecedented work the benefits can be exploited. In 2019-20, a in establishing our policy positions and total of 1,238 barriers had been uploaded engaging with WTO members. onto our Digital Market Access Service, of which 115 barriers have been resolved in full. • We continue to work to push for reform in the system at the WTO and through • Good progress has been made on JTRs trade discussions in the G7 and G20 are and JETCOs which we have in place with forging stronger links with international our key trading partners. Both JTRs and allies in the Commonwealth to deliver a JETCOs enable the development of clear more prosperous future for all our citizens. trade policy priorities informed by business In line with this vison, the UK hosted the needs and robust analysis. They provide a Commonwealth Trade Ministers Meeting platform from which we can influence other on 10 October 2019 as the Commonwealth countries to secure and enhance our trade ‘Chair in Office’. arrangements, support the rules-based international trading system, and align with • DIT has worked to ensure a level playing wider Government priorities. field by defending our industries from unfair trade practices through trade remedies • DIT has completed JTRs with Brazil and and dispute resolution. We have set up India and has launched reviews across an expert body to handle trade remedies multiple regions in countries including China measures, currently the Trade Remedies and Indonesia. We have also held JETCOs Investigations Directorate (TRID) and with India, Taiwan and Vietnam, and look developed a dedicated trade remedies forward to dialogues with Qatar, Brazil, team that is prepared to provide policy and India, China and Mexico. sponsorship support to the TRID and, once • We have been leading on the development the Trade Bill receives Royal Assent, the of the UK’s trade policy and negotiation Trade Remedies Authority (TRA). The TRID skills and capability. We have developed has begun reviewing 43 EU trade remedy and are delivering a broad range of learning measures, which were deemed important to opportunities for people in DIT and across UK industries and should be transitioned to government to further develop and challenge the UK system. The framework will provide their capabilities and readiness for trade real and robust protections to UK industries policy and trade negotiations. In addition, we and the consideration of what is appropriate have continued to develop the International for, and benefits, UK industry as we operate Trade Profession, supporting people to an independent trade policy. develop their careers in trade and building a strong community of trade professionals across government. 5 Statistical ad-hoc release on the trade agreements continuity programme published on GOV.UK.


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    34 Department for International Trade What’s next? DIT will continue to progress the Government’s Over the course of 2020, DIT will work with commitment to negotiating ambitious new free the Saudi Arabian G20 presidency to drive a trade agreements and to transition existing EU global and coordinated response to COVID-19 agreements. Much of this work will be done in and secure UK priorities. This work is vital for the context of significant pressures to global keeping trade flowing and avoiding further trade trade, rising global tensions and the challenges distortive measures. posed by the COVID-19 pandemic. Free trade and To support global economic recovery following resilient supply chains through open markets will the COVID-19 pandemic, it is essential that all be crucial to the global economic recovery after nations revert to a system of open, connected the COVID-19 crisis. global trade. DIT will continue to develop our The Department is taking a central role in the independent trade policy in order to ensure free wider government response to COVID-19. We and fair global trade; and progress work with our will capture and report on current and emerging overseas networks to resolve market access trade restrictions related to COVID-19, including barriers which prevent new opportunities for UK closely monitoring exports of medical equipment exporters. This work includes: and food supplies. Our primary focus will • Progressing our FTAs with the US, Japan and continue to be supporting the Department’s Australia and New Zealand. We have already efforts in developing strategic partnerships taken important steps this year to publish our with major supply countries and identifying negotiation objectives, scoping economic vulnerabilities in global supply chains of critical assessments and government responses to medical equipment. the consultations for FTA negotiations with the An extensive database of known trade restrictions US and Japan on 3 March and 13 May 2020 is updated in real time and we are providing respectively, and with Australia and regular horizon scanning updates which highlight New Zealand on 17 June 2020. potential risks to achieving the trade impacts • Under the Continuity Negotiations programme, we want for the UK’s COVID-19 response and we are seeking to transition remaining our international objectives. Our intelligence is continuity agreements (including Singapore considered alongside further analysis of supply and Vietnam) and ensure that signed trade chains and other economic impacts. This is continuity agreements can be brought into important to ensure we have clear information effect once the Transition Period ends. about domestic supply chain vulnerabilities to enable us to focus on and address any emerging • We are aiming to conclude an FTA trade restrictions globally and flag potential trade with Norway, Iceland and Liechtenstein developments on the horizon; and recommend (EEA EFTA States) to come into force at the what international engagement would be useful. end of the Transition Period. This FTA will seek to replicate the effect of our existing trade The UK will play a leadership role in the global relationships, as far as possible, and enable us economic recovery through our independent seat to continue to strengthen it over time. at the WTO. We will seek to utilise our unique set of global relationships to broker agreements on • We are aiming to conclude an FTA with these strategic issues underpinning the COVID-19 Turkey that will take effect from the end of crisis in the multilateral trading system. the Transition Period in the scenario that an UK-EU FTA is agreed. We are seeking As an immediate priority, we are developing UK to secure continuity as far as possible with G20 policy positions in response to the global Turkey and to a timeline that reflects the pandemic; working with allies to reset WTO progress of the UK’s negotiations with the EU. negotiations and leading preparations for the UK G7 presidency in 2021.


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    Annual Report and Accounts 2019-20 35 • Regional teams will continue to identify simplified thereby reducing unnecessary opportunities for bilateral engagement with compliance burdens on businesses and non-FTA countries. We are working to secure reducing the risk of circumvention. The agreement from China and hold a JETCO. monetary element has been converted into We are also developing proposals for greater pound sterling in both the UKGT and the trade collaboration with Canada (alongside UK’s draft bound Goods Schedule at the Comprehensive Economic and Trade WTO. Under the UKGT, 47.5% of tariff lines Agreement negotiations). A JTR with Indonesia will be duty free, up from 26.6% under the will also be completed by the autumn of 2021, EU’s Common External Tariff. Throughout the subject to any delays caused by COVID-19. rest of 2020, DIT will work with HM Treasury to put in place the supporting secondary • Following the deal reached on the withdrawal legislation and programme of communication agreement and political declaration with with business to ensure the UKGT is fully the EU, DIT has worked with HM Treasury operational by the end of the Transition Period. and other departments across government to prepare a UK specific Most Favoured • Finally, we are taking forward the Trade Bill in Nation (MFN) tariff schedule called the UK Parliament. We will seek an implementation Global Tariff (UKGT) to make best use of the power in the Bill. The implementation power opportunity that our trade independence is a measure intended to enable the UK brings us. The new schedule is tailored to to ensure that procurement and mutual the UK economy and supports our trade recognition provisions in trade continuity objectives, while positioning the economy to agreements can be fully implemented in compete on world markets. Some of the most domestic law (via secondary legislation) over complex elements of the existing schedule time and in all circumstances. (the EU’s Common External Tariff) have been Image: Secretary of State launching trade negotiations with Japan’s Minister for Foreign Affairs, Toshimitsu Motegi, in June this year.


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    36 Department for International Trade DIT’s impact Colombia – Double Taxation Convention DIT Colombia worked with HM Revenue & Customs to secure the ratification of a Double Taxation Convention with Colombia. The cost and inconvenience of double taxation has deterred UK companies from choosing to operate in Colombia. Working with HMRC, DIT helped achieve the signing of an agreement during the State Visit of the previous Colombian President, Juan Manuel Santos, to the UK in 2016. The complex ratification process in Colombia required sustained lobbying by DIT to enable the agreement to come into force on 1 January this year. With all provisions of the agreement now in force, trade and investment in both directions should see a significant boost. For instance, UK providers of services to Colombia who are not present in Colombia for more than 183 days in any year will not now need to pay any tax there, and withholding taxes on interest and dividends are reduced under the agreement, providing future certainty to businesses investing in Colombia. More information on how business can benefit from the Double Taxation Convention between the UK and Colombia can be secured from our DIT Colombia office.


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    Annual Report and Accounts 2019-20 37 DIT’s impact Myanmar – Insurance DIT worked across HMG to support DIT worked with the Foreign & Commonwealth Prudential’s entry into Myanmar’s previously Office to coordinate supportive work from monopolised insurance market. HM Treasury; organised trade missions to London and arranged meetings between Prudential’s For decades Myanmar’s insurance sector was run staff and Myanmar ministers; and organised by a state-owned monopoly intrinsically linked the 2018 UK Capital Market and Insurance with the military. This began to change in 2013 Conference in Yangon where regulators and when 12 domestic licences were granted. The multiple stakeholders participated. Throughout UK Embassy undertook a campaign to enable this, DIT lobbied the Myanmar government UK companies, like Prudential, to access this for its insurance sector liberalisation and market building on long-standing work by the consistently maintained contact with Prudential Department for International Development’s senior management. broader economic development programme for Myanmar to promote the benefits of responsible In November 2019, Prudential ultimately secured investment and liberalising the sector. their operating licence for the country, opening up the opportunity of further UK engagement in the newly liberalised insurance market in the future. Image: Bogota city centre, Colombia.


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    38 Department for International Trade Objective 4 Use trade and investment to underpin the Government’s agenda for a Global Britain and its ambitions for prosperity, stability and security worldwide. Prosperity, stability and security are at the heart visits from foreign governments, Ambassadors of what DIT does. This is a mutually reinforcing and High Commissioners, to raise the profile of agenda - a prosperous, trading, UK relies on the UK and champion open and fair trade. stable global partners that are flourishing. Over During the course of the year we established a the course of a year that has seen the UK leave new future focussed analytical strategy team the EU and once again become an independent to identify the long-term trends that will shape trading nation, DIT has championed the UK as a UK trade and investment in the coming years proponent of free, fair, rules-based trade, which – ensuring that the Department’s strategic is committed to defending market principles and decisions are underpinned by forward-looking promoting global stability as well as prosperity. analysis of the world in 2030 and beyond. The great majority of DIT’s work on trade policy and trade promotion helps drive UK and On 3 March, the Secretary of State global prosperity. This work is underpinned by became the first Trade Secretary to GREAT - the Government’s most ambitious represent the UK’s independent voice at international promotional campaign. It has an international meeting in almost half also been supported through a range of major a century, with her inaugural address domestic and overseas events. On 20 January, to the World Trade Organization (WTO) the UK hosted the Africa Investment Summit, General Council. which showcased the breadth and quality of investment opportunities across Africa. The Summit strengthened the UK’s partnership with During this speech, the Secretary of State not African nations to build a secure and prosperous only made clear the UK’s commitment to rules- future for all our citizens. DIT played a leading role, based trade underpinned by a forward-looking ensuring the Summit’s success and securing over WTO, but also the Government’s intention to take £6.5 billion worth of commercial deals that were the lead in tackling climate change, reflecting the announced on the day. importance of its effects on the global security and prosperity agenda. DIT leads on the strategic planning and delivery of UK activities and programmes at World Events DIT has established a new team to embed climate such as the World Expo in Dubai, now expected policy work into the Department ahead of the to begin in October 2021. The event will be a key UK hosting COP26 and to prepare for the global platform to drive long term economic benefit transition to low-carbon economies, ensuring and boost the UK’s global reputation. The UK’s DIT is an active contributor to climate policy presence at the Expo 2020 Dubai will profile our development across government. economy as being at the forefront of innovation The Department remains focussed on promoting and will facilitate collaboration and partnership shared prosperity in developing countries, between the UK and other participating nations, including through programmes using Official creating solutions to global challenges. Development Assistance (ODA), and has Our HM Trade Commissioners and their overseas continued to develop its ODA and non-ODA networks have driven forward the Government’s spending capabilities to ensure we have the ambitions for a more prosperous UK through people, processes and systems required to spend their Regional Trade Plans. Alongside this, DIT programme funds responsibly and effectively. supports the coordination of the Prime Minister’s Trade Envoys, and uses Ministerial visits, inward


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    Annual Report and Accounts 2019-20 39 The Secretary of State for International Trade was Finally, the Export Control Joint Unit, which appointed as a standing member of the National brings together operational and policy expertise Security Council (NSC) and has represented the from DIT, the Foreign & Commonwealth Office Department at meetings of the NSC, raising the and the Ministry of Defence, has continued to profile of trade and prosperity in foreign policy license military and other sensitive exports to discussions across government. Towards the end ensure they are consistent with the UK’s national of the reporting year, DIT was closely engaged and international obligations, including the in planning for the Prime Minister’s Integrated preservation of regional peace, security and Security, Defence, Development and Foreign stability. In addition, this year it has implemented Policy Review, ensuring that the global trading the judgment of the Court of Appeal on context is fully considered in assessments of 20 June 2019 in respect of not granting export opportunities and challenges for the UK. licences for Saudi Arabia for equipment for possible use in the conflict in Yemen. DIT Achievements Over the course of 2019-20 DIT has: • Announced an end to the Government’s international support for the thermal coal • Coordinated 29 overseas visits to industry. DIT led Whitehall policy work for 31 markets by the Prime Minister’s Trade this announcement, made by the Prime Envoys. As of 31 March 2020, there were Minister on 21 January, and has helped 19 Trade Envoys. Ministers made 42 visits to the Government to demonstrate climate 28 countries in 2019-20, including visits to leadership and cement its policy position the UN General Assembly and the WTO. to ‘power past coal’. • Delivered the following ODA-funded activity: • Aligned the Department’s work with the - The Africa Uplift: DIT’s role in delivering the Government’s climate change objectives. objectives of the Africa Strategy involves A new Director-level Climate Steering Board safeguarding and promoting private and Climate Strategy Team have overseen investment in Africa; connecting high- preliminary work on how DIT’s policy levers development-impact projects with finance; could be used to help combat climate and helping African businesses grow. The change; how to resolve tensions between Africa Uplift began in April 2019 and 23 new trade and climate objectives; and how to DIT staff were recruited in the 2019-20 reduce the Department’s own contribution financial year. to global emissions. - Implemented the first year of the Investment • Worked to put trade and prosperity at the Promotion Programme (IPP). The IPP is a heart of national security discussions and 4-year programme to support Investment positioned the Department to engage fully Promotion Agencies in selected countries with the Prime Minister’s Integrated Review. to promote their markets and increase • Engaged actively in external events on the Foreign Direct Investment. With support future of trade, investment and the global from the Capability Programme, the IPP is economy – with speeches, participation on track to meet the Government standard and online articles from senior officials for transparency. that have drawn on internal analysis on - Launched the Business Integrity Initiative, the World in 2030. in partnership with the Department for International Development – a new service to help businesses manage integrity risks when operating in or pursuing new (developing) markets.


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    40 Department for International Trade What’s next? • 2020 marks an important landmark in • Export policy will continue to be used to the UK’s ambitions for promoting global contribute to global stability and prosperity. prosperity and the Department will align For example, the Department reconsidered with wider government policies by feeding decisions on the grant of new export into the Global Development Strategy, the licences and suspension of extant licences Government’s Integrated Review as well as for Saudi Arabia for equipment for possible any future Comprehensive Spending Review. use in Yemen as required by the Court of Appeal judgment of 20 June 2019. It will also • In the context of the new strategy set up a new digital licensing platform to and reviews, the Department will also facilitate responsible exports. consider how best to contribute to delivering the Government’s objectives for • Now that the UK has left the EU and will development and trade. operate as an independent trading nation, preparations are being made to implement • The Department will maintain its the Northern Ireland Protocol in respect of collaboration with other government export controls. departments including through working on the Business Integrity Initiative and • Finally, the Department will be taking a Growth Gateway. central in preparations for the UK Presidency of COP26 in 2021. • The Department will continue to prepare for the Expo 2020 Dubai (now expected to begin in October 2021), which will provide a platform to showcase Britain’s innovation and forge stronger ties with nations across the world to promote prosperity and solve global issues.


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    Annual Report and Accounts 2019-20 41 DIT’s impact UK-Africa Investment Summit 2020 On 20 January, the UK hosted the UK-Africa The Summit also saw the announcement of Investment Summit, which brought together several new initiatives and funding to: strengthen businesses, governments and international the joint trading relationship, support African institutions to showcase the breadth and quality countries in their ambition to transform their of investment opportunities across Africa. The economies, launch a major new partnership with Summit laid the foundations for new partnerships the City of London, turbo-charge infrastructure between the UK and African nations based on financing, and enable Africa’s clean energy trade, investment, shared values and mutual potential. Taken together, this will help to realise interest, in order to build a secure and prosperous the UK’s ambition to be the investment partner of future for all citizens. DIT played a leading role, choice for Africa, create hundreds of thousands of ensuring the Summit’s success and securing over jobs and ensure mutual prosperity. £6.5 billion worth of commercial deals that were announced on the day.


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    42 Department for International Trade Objective 5 Build DIT as an effective international economic department where our people are expert, enterprising, engaged and inclusive. This is the third full financial year that DIT has been For the start of the EU Exit Transition Period, operating and our capability and support services the Department launched two important digital have continued to evolve and mature in response services: Check how to export goods (CHEG), to departmental priorities and objectives. Led by which provides exporters of goods from the UK our Permanent Secretary, our global workforce with information such as duties and customs of over 4,300 committed professionals cover procedures for over 160 countries, and Trade with exports and investment from end-to-end and the UK (TWUK) that provides overseas sellers remain at the heart of delivering benefits to British of goods into the UK market with information on businesses across the entire UK. Now we have tariffs, taxes and rules. Both successfully replace left the EU, the Department’s role and purpose services previously provided by the EU, although is more critical than ever as we take forward our businesses will still have access to the EU own independent trade policy for the first time services until the end of the Transition Period. in over 45 years. The success of DIT continues to be driven by the capability of our workforce, enabling staff to provide expert support to our Ministers and DIT Achievements deliver our departmental objectives. Our work building capability is A focus for our corporate services has been underpinned by a strong departmental supporting the Department with preparations for learning culture that utilises new and the delivery of an ambitious programme of trade innovative methods of delivery. negotiations. In March, the Department published the Government’s strategic approach for agreeing a Free Trade Agreement with the US that included Our learning offer focuses on essential cross- a detailed analysis of the evidence to support departmental development priorities, including: this approach. During 2019-20, the Department developing trade capability through the also achieved an integrated financial settlement International Trade Profession; establishing from the HM Treasury that has provided a more a Heads of Profession network and ensuring secure financial base for our operational planning we have profession-specific learning in place; and delivery of DIT’s core objectives. As part of and building our leadership and management our preparations for a comprehensive Spending capability at all levels, including a Director Review, we are also continuing to improve our Development programme and a leadership evidence base on the value for money and impact programme for Civil Servants at Grade 6 and 7. of the Department’s activities. Supporting people to achieve their full potential Central to DIT’s trade ambitions is our ability is an important part of our employee offer. to conduct safe and secure negotiations DIT offers a range of apprenticeships across where our information assets are protected. In different disciplines to build both individual December 2019, the Department established a and departmental professional capability. This Trade Negotiations Security Board responsible year, we exceeded our target (of 51) with 57 new for implementing the necessary security apprenticeship starts. arrangements for the Department to conduct Commercial capability across the Department trade negotiation at scale both overseas and has also seen strong focus and significant within the UK. We have also taken additional improvement. DIT secured the first accreditations steps to strengthen the capability and capacity for the Contract Management Capability of our security team and the policies and Programme at Foundation and Expert levels and guidance that underpin how DIT manages its had the highest pass rate across government. information securely.


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    Annual Report and Accounts 2019-20 43 We ended the year with 82 people across the • Changed ways of working are also requiring Department achieving accredited status in investment in the digital tools and software contract management and a further staff need to work effectively. Following a 137 progressing on their learning journey towards rapid and successful roll-out of Microsoft accreditation. Over the year the commercial Teams, we are further developing our capability team also delivered over 250 training data infrastructure in order to facilitate hours on a suite of topics covering more general improvements to the many digital products commercial skills. and services provided to the Department, including our Digital Workspace and Finally, an engaged and motivated workforce Data Hub - the central system DIT uses remains important to DIT. In 2019-20, the to manage, track and build relationships Department’s People Plan was refreshed to with UK international businesses. Work reflect the 2018 People Survey results. The plan is is also planned to improve the Market crucial to our One DIT culture and making DIT an Access Service, enabling businesses to outstanding place to work; as well as embedding see market access barriers on both gov.uk our values of Expert, Enterprising, Engaged and and great.gov.uk, increasing the focus on Inclusive. Tailored interventions from our directors data quality and providing new guidance are having a positive impact and were reflected for businesses. in further improvements in the 2019 People Survey results. • Our Commercial team will continue to focus on supporting the Department’s work sourcing and securing critical What’s next? medical supplies from the global market. This will include conducting due diligence on potential suppliers and escalating and unblocking issues as they arise, and • Responding to the Government’s Places for supporting DIT’s efforts in developing Growth programme will be a priority for DIT strategic partnerships with major supply next year. The Department has committed countries. Our Analysis Group will also to having a strong presence within a new continue to ensure Ministers have rapid Northern Economic Hub being established data and analysis on the evolution of the by HM Treasury. We will also continue to pandemic and recovery to inform decisions, consider how the Department’s presence and initiate liaison across the trade can be strengthened across all four nations economics functions of the OECD, WTO and of the UK. Overseas we will continue to work partner trade ministries to fully understand closely with other government departments the impacts of COVID-19. to improve the consistency of experience for locally-engaged and UK-based staff as well • In addition to COVID-19 related activity, seeking improvements in the efficiency and support will continue to be provided to the effectiveness of the One HMG Platform. Department’s business-critical priorities, including our ambitious programme of Free • Since the start of 2020-21, the Department Trade Agreements as well as preparations has re-prioritised its resources to address for the UK’s first independent tariff policy. the unfolding consequences of the COVID-19 This includes objectives and scoping pandemic. A priority has been ensuring assessments for Japan, Australia and additional support is provided to individuals New Zealand (already published) and and managers adjusting to the ongoing need new analysis to support our export and for working remotely, particularly the impact investment strategies. In recent months, this can have on staff health and well-being. our Security and DDaT teams successfully Additional support will also be provided to facilitated the launch of formal trade our staff in managing a phased return to ‘in negotiations with the US and Japan, utilising office’ working, including ongoing policy technology to ensure the negotiations changes that are needed to adhere to public conducted remotely could proceed in an health guidelines. A refreshed interim People effective and secure way. Plan included interventions around health and wellbeing as well as activities focussed on inclusive behaviours and this will be supplemented with a further full People Plan later this year that will continue our focus on building capability even further.


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    44 Department for International Trade International Trade Profession The International Trade Profession was created • A new interactive Learning & Development to build a technically expert function across prospectus, incorporating details of all trade government that can negotiate and deliver the training (policy, negotiations, export and best deals for the UK, has high levels of business investment) into one place and making the acumen to support UK exports, investment and offer more accessible. trade policy and is deployable across the UK • Regular network and community events and overseas. Since launching in May 2018, and speaker series with both internal and the Profession has since grown to over external experts. 3,000 members across 25 departments and arm’s length bodies, including the devolved • A broadened careers offer by piloting administrations and overseas. mentoring and secondments between departments to develop knowledge and Over 2019-20, the Profession has expanded and share best practice across government. improved its offer to include: • A pay and reward toolkit to assist • Revised and refined professional standards departments in attracting and at foundation, practitioner and expert level, retaining their staff. to enable individuals to identify areas for • Regular communication and engagement, development and the skills, knowledge and including monthly newsletters to develop a expertise they require to operate effectively network across government and provide the in a trade environment. latest trade news.


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    Annual Report and Accounts 2019-20 45 People Survey Employee engagement continues to be a priority This reflects an ongoing commitment to invest for DIT. The 2019 People Survey achieved the in the skills and capability of our workforce with highest response rate for DIT to date (93%), specific focus this year on building our trade with an overall engagement score of 65%. This capability as well as developing leadership and reflects a nine percentage point increase in our management skills. The results also showed that score since the Department was established in staff remain interested in their work (91%) with 2016, and our score for 2019 remains higher than the right skills (89%) and are trusted (88%) to do the Civil Service benchmark of 63% (2019). The their job effectively. These scores show an overall biggest improvement amongst the 2019 People positive trajectory on engagement, although we Survey themes in DIT was for Learning and know there is still more to do around pay and Development (increase of four percentage points). reward, which continues to be the lowest scoring theme across the Survey (at 24%). Completion rate: Resources and workload score: 93% (4 percentage point increase on 2018 survey results) 71% (1 percentage point increase on 2018 survey results) Engagement score: Inclusion and fair treatment score: 65% (equalling the 2018 survey results) 80% (1 percentage point increase on 2018 survey results) Pay and benefits score: Learning and development score: 24% (1 percentage point increase on 2018 survey results) 59% (4 percentage point increase on 2018 results) Leadership and Organisational objectives and managing change score: purpose score: 51% (1 percentage point increase on 2018 survey results) 85% (1 percentage point decrease on 2018 survey results) DIT Spirit Expert: Enterprising: Engaged and We strive for brilliance We are commercially savvy, Inclusive: in every role, projecting exhibiting willingness to We treat everyone openly, fairly and confidence in undertake difficult projects and equally, and we collaborate proactively everything we do. innovative in how we work and with a can-do attitude, inspiring others address challenges. to want to engage with us.


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    46 Department for International Trade Diversity & Inclusion Building a diverse and inclusive department is a Diversity declaration for UK-based DIT staff, priority for DIT. Alongside the wider Civil Service as at 31 March 2020: (equivalent percentages ambition to be the most inclusive organisation at 31 March 2019 are given in brackets) in the UK, we are also ambitious to be a leading department on this agenda within the Ethnicity: wider Civil Service. 16% 47% 3% 34% In 2020, our priority will be to develop the first, BAME White Prefer not Not multi-year Diversity & Inclusion Strategy for the (15%) (49%) to say reported Department that builds on the strong foundations (3%) (35%) our Diversity & Inclusion Action Plan and Diversity Networks have laid over the last couple of years. Sexual orientation: Our current Diversity & Inclusion Action Plan, which is in line with the Civil Service Diversity & 6% 53% 6% 35% Inclusion Strategy, covers five strands: Enabling, LGBT+ (6%) Hetero Prefer not Not sexual to say reported Recruitment, Our Talent, Leadership, Engaged (54%) (6%) (35%) and Inclusive. In all these efforts our data and employee self- Religion or belief: reporting continue to be important. At the end of 2019-20, we had a total declaration rate6 of 12% 47% 5% 36% 65%, down one percentage point from the end No religion Religion Prefer not Not of 2018-19. We have worked with our Networks or belief or belief to say reported and leaders to increase the level of self-reporting; (11%) reported (5%) (36%) (47%) however, ongoing recruitment has meant that these increases have not yet impacted our overall self-reporting figures. The collection and analysis Disability: of diversity data will remain a priority in our work 6% 51% 3% 39% going forwards. Our goal remains to reach 70% Yes (7%) No (52%) Prefer not Not by the end of 2020-21. to say reported (3%) (38%) 6 Total declaration rate is the average positive self-nomination response across each of the above protected characteristics and nationality. Some figures may not sum to 100% due to rounding. Figures for 2019 are restated to account for revisions.


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    Annual Report and Accounts 2019-20 47 This year we have seen several notable The 2019-20 Gender Pay Gap (GPG) report has achievements on Diversity and Inclusion, including: not yet been published. The Department’s GPG increased in 2018-19. In this year, our mean • Being placed at number 30 in Stonewall’s gender pay gap was 5.5%, and our median was UK Workplace Equality Index and being 12.9%. DIT has a gender imbalance, with women named as one of the UK’s Top Trans making up only 44% of staff eligible for inclusion Inclusive Employers. Our position in in statutory GPG calculations (this had risen to Stonewall’s index represents a jump of 46% by 31 March 2020). We have been working 71 places from our ranking the previous to increase the diversity of our staff, and in 2018- year and recognises our work on 19, of people in scope for GPG analysis, the LGBT+ inclusion. proportion of women increased, but at more junior • Being ranked 42nd out of 75 in the Social levels, which increased the GPG compared to the Mobility Foundation’s Index, which ranks previous year. Correcting this situation will take employers on the steps they are taking to time. We are encouraging women to join DIT at all progress talent from all backgrounds. levels, but particularly at more senior roles, and we are committed to staff development to support • Continuing to deliver against the four women to progress into senior positions. Further pledges made when we achieved Disability information is provided in DIT’s Gender Pay Gap Confident Level 3 (the highest level possible), report for 2019, published on gov.uk7. demonstrating our commitment to building an inclusive workforce and providing support for those with a disability. Disability Confident is a voluntary government scheme designed to encourage employers to recruit and retain people with disabilities and health conditions. • Launching a new Neurodiversity Network, to support employees with a range of neurodiverse conditions, such as dyslexia, dyspraxia, ADHD or autistic spectrum conditions. • Exceeding our flow target for ethnic minority employees progressing into the Senior Civil Service (SCS). These targets have been introduced to increase the diversity of the SCS population. 7 https://www.gov.uk/government/publications/dit-gender-pay-gap-report-and-data-2019.


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    48 Department for International Trade Performance Analysis Introduction The following section provides a summary of the key metrics used to monitor the Department’s performance against the full breadth of our activity, covering all objectives in our 2019-20 Single Departmental Plan. These metrics are drawn from the Department’s performance framework, which is the basis of internal performance reporting as part of the governance process. The performance framework will remain subject to further improvement throughout 2020-21. Uncertainty cannot be eliminated from the data used to assess departmental performance - trade and investment data is frequently subject to revisions, and significant variations can be found between estimates by different organisations. To continue to maximise the accuracy of the data we use, a broad range of sources are used to inform department operations and policy. Quality issues are also routinely flagged as part of internal reporting, with verification procedures in place on the main operational metrics, to mitigate risks associated with the use of incorrect data. The figures presented here represent the most recent data available at time of publication. Exports and Outward Investment UK Exports of Goods and Services UK Exports as a % of GDP in 2019-20 £690.7bn in 2019-20 31.1% (3.6% increase from 2018-19) (0.4 percentage point increase from 2018-19) Source: ONS Balance of Payments, Source: ONS Balance of Payments and GDP quarterly UK: January to March 2020 national accounts, UK: January to March 2020 Outward Foreign Direct Investment UK share of goods exports (ODI) Stock in 2018 to the world in 2018 £1,409bn 2.4% (2.9% increase from 2017) (0.1 percentage point increase from 2017) Source: ONS Foreign direct investment Source: DIT Analysis involving UK companies In 2019-20, UK exports have risen by 3.6% to £690.7bn, equivalent to 31.1% of GDP. This is against the Government’s ambition of 35% of GDP from the 2018 Export Strategy. There was a significant difference in 2019-20 between the first three quarters and the last quarter, where COVID-19 begins to make an impact. As both exports and the wider economy are impacted further, exports as a percentage of GDP is expected to become a more volatile indicator. Market share represents the value of UK exports of goods in 2018 as a percentage of exports of goods by all countries, according to UN Comtrade data. This provides context to UK export figures by accounting for changes in global demand. Goods data are reported on a physical movement basis, rather than the balance of payments basis used elsewhere in this Annual Report. A combined market share for goods and services is not currently available.


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    Annual Report and Accounts 2019-20 49 Value of Export Wins in 2019-20 Value of ODI Wins in 2019-20 £24.4bn £4.92bn (10% decrease from 2018-19) (23% decrease from 2018-19) Source: DIT Export Wins Service Source: DIT Export Wins Service An Export Win is a deal, contract, sale, or other specific type of agreement for an eligible UK company which has resulted from support provided by the DIT network. In 2019-20, DIT achieved Export Wins worth 117% of the Department’s total ambition of £20.9bn. This ambition was set locally through Regional and Sector Trade Plans. The ambition is reduced from last year as emphasis on performance against Export Wins alone was reduced. Export Wins are just one of the metrics through which DIT’s export performance is monitored. During 2016-17 and 2017-18, Export Wins were the primary measure of export promotion performance and used for setting performance targets. From 2018-19, in line with the evolution of the Department, our overseas network was provided with greater autonomy in delivering their Regional Trade Plans against the full set of DIT objectives, including identifying and reducing barriers to trade and investment. DIT also supports a relatively small number of outward Foreign Direct Investment (FDI) projects as ODI Wins. This naturally results in significant year-on-year variability in the value of ODI Wins. There was no overall ambition for ODI Wins in 2019-20. Methodology and production of Export Wins and Outward Foreign Direct Investment Wins An Export Win or ODI Win record is created using support in exporting is required to confirm the a digital framework which registers information Win through a separate online form. A Win counts entered by a lead officer from the DIT network. once it has been confirmed by the customer Lead officers are responsible for the quality and and this must be done within 12 months of the accuracy of the data they enter. Once the Win has company winning the deal. been entered, the UK customer which received Coherence and comparability DIT records export deals, contracts, sales or Revenue & Customs both publish exporting agreements where there has been support data at the UK level. For more information, visit provided by our export promotion operations as www.ons.gov.uk and www.uktradeinfo.com. an Export Win or an ODI Win. Moreover, the metric The sources for exporting data at a UK level only captures customers DIT has assisted who used in this Annual Report are from ONS UK have realised a deal, not those DIT has worked Balance of Payments (January to March 2020) with but have not reached a deal. and UK GDP quarterly national accounts (January to March 2020). The metric is a departmental performance measure and does not capture exporting or investment activity on the same basis as measured in official statistics. The Office for National Statistics (ONS) and Her Majesty’s HM


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    50 Department for International Trade Accuracy and definitions An Export Win or ODI Win is a deal, contract, sale, or other specific type of agreement for an eligible UK company which has resulted from support provided by the DIT network. The Win is self- reported by the UK company and captures the expected value of the Win up to a five-year period. The Win metric contains some inherent characteristics that will always present challenges in assuring value and data accuracy. The metric relies heavily on the relationships DIT staff have with customers, and the information customers are prepared to share. Values of Wins include specific expectations and forecast values up to a five-year period, these are subjective. Some deals are very complex, involving global supply chains and in-market requirements for local supply / presence and the ask of customers to separate UK export value from others is a distinction that is artificial for them. The information captured, therefore, represents a snapshot at a certain point in time based upon what the customer is willing or able to provide. The metric has been subject to a review to enhance understanding of the quality and robustness of the data. From 2017-18, new validation processes aimed at delivering a proportionate but systematic validation approach have been introduced for Export Wins. These validation approaches continued through 2019-20 and focussed on Export Wins led by, or contributed to by, DIT teams in the English Regions and Export Wins over £50m. Wins that failed either validation process are amended or deleted from the system. During 2019-20, all Export Wins over £50m were validated and Export Wins for English Regions were validated for Q1 to Q3. Due to COVID-19, the validation of Export Wins for English Regions in Q4 was cancelled to reduce the burden on business in the first weeks of the pandemic in the UK. However, we do not believe this will have had a material impact on the reported figures.

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