JCB to the fore as Prime Minister embarks on SE Asia trade visit
STAFFORDSHIRE excavator manufacturer JCB is one of the top British firms accompanying Prime Minister David Cameron on his trade visit to the Far East.
The Prime Minister will touch down in Jakarta this morning on the start of a four day visit to South East Asia.
As part of the Government’s efforts to increase UK exports to £1 trillion a year and to get 100,000 more UK companies exporting by 2020, Mr Cameron is taking the first trade mission of the new Parliament to a region forecast to grow at 5% this year and with potential to unlock huge opportunities for jobs and growth in the UK.
Trade deals worth around £750m are expected to be announced during the visit and with JCB’s participation; speculation is rife that the Rocester company may be set to announce a major new export order.
JCB is considered by the Government to be a prime example of how British businesses can lead the world in certain areas.
Speaking ahead of the visit, the Prime Minister said: “British companies like JCB are flying the flag and unlocking the economic potential of the fast growing economies of South East Asia. I am delighted that they have joined me on my first trade mission of this government and I hope that we can work together to create jobs and growth for the UK.”
The Government is also making available up to £1bn to finance infrastructure projects in Indonesia through its export guarantee scheme. This financing could pave the way for growth of £200m worth of exports to UK. Projects up for grabs include a sewage treatment system in Jakarta worth £400m and geothermal power projects worth £66m.
As well as boosting bilateral trade, the Prime Minister will also put his weight behind an EU-ASEAN deal. Becoming the first British Prime Minister to visit ASEAN headquarters in Jakarta, he will call for the EU and ASEAN to jump start negotiations talks on a free trade agreement.
A deal between these two trading blocs has the potential to benefit the UK economy by £3bn every year by creating one of the biggest free trade areas in the world with combined GDP of over $20 trillion.
Following on from the EU-Singapore FTA and on the back of recent progress on an EU-Vietnam trade deal, the Prime Minister is hopeful the need for economic growth in Europe will spur on trade agreements with the rest of the world.
His call comes as the ASEAN countries prepare to establish an economic community by the end of this year.
The UK will support these efforts by providing technical assistance to improve economic policy, planning and implementation. The Government said this would strengthen the business environment, increase the attractiveness of the region to international companies, and give a real boost to prosperity for the people of South East Asia.
With British businesses stepping up their interest in the region, it is hoped this will help them invest and grow as the region develops.
