APPENDIX 32
Third supplementary memorandum by UK Trade
and Investment
1. Q366, Page 5: To provide a detailed breakdown
of export activities which together comprise the £2.3 billion
figure for exports from January to November 2005.
Details of the UK's trade in Services with India
are given below. 2005 figures will be available from the ONS in
July 2006.
Details of the UK's exports of goods to India
for 2005, are attached in various tables as follows:
— India SITC 66 68 28.doc shows
a breakdown of the three codes as requested by TISC;
— India SITC 5 digit.xls lists
the full 5 digit SITC breakdown.
[25]
— India EU rankings.xls consists
of three tables showing EU rankings taken from Eurostat: one for
total goods, one for goods excluding diamonds, and one excluding
diamonds, silver and gold.
It should be noted that:
— Including diamonds, the UK was
the second largest EU exporter to India in 2005, after Belgium.
Excluding diamonds, the UK was the second largest exporter to
India in 2005 after Germany.
— The growth in value of UK exports
to India from 2004 to 2005 was about 20-30%, depending on which
items you ignore.
UK TRADE IN SERVICES WITH INDIA 2000-04
Trade In Services with India (£ Million)
| 2000 | 2001
| 2002 | 2003 | 2004
|
| UK Exports | 549 | 664
| 619 | 688 | 812
|
| UK Imports | 663 | 814
| 804 | 783 | 1,015
|
| UK Balance | ¸114 |
¸150 | ¸185 | ¸95
| ¸203 |
| | |
| | |
Trade in Goods and Services with India (£ Million)
| 2000 | 2001
| 2002 | 2003 | 2004
|
| UK Exports | 2,067 | 2,461
| 2,374 | 2,981 | 3,049
|
| UK Imports | 2,314 | 2,639
| 2,598 | 2,871 | 3,291
|
| UK Balance | 293 | ¸178
| ¸224 | ¸110 |
¸242 |
Source: ONS, United Kingdom Balance of Payments (The Pink
Book).
EU25 COUNTRIES EXPORTS TO INDIA 2004-05 MILLION EURO
Total Goods Excluding Diamonds (HS 7102) silver (HS
7106) and gold (HS 7108)
| 2004 | 2005
|
| | |
| Germany | 3,284 | 4,145
|
| UK | 1,752 | 2,135
|
| France | 1,445 | 1,973
|
| Italy | 1,272 | 1,676
|
| Sweden | 784 | 931
|
| Netherlands | 908 | 751
|
| Belgium | 615 | 726
|
| Spain | 379 | 554
|
| Austria | 266 | 404
|
| Denmark | 301 | 335
|
| Finland | 264 | 279
|
| Czech Republic | 163 | 212
|
| Ireland | 69 | 160
|
| Poland | 108 | 130
|
| Hungary | 29 | 36
|
| Slovakia | 21 | 34
|
| Greece | 27 | 32
|
| Portugal | 18 | 26
|
| Slovenia | 14 | 23
|
| Lithuania | 18 | 21
|
| Luxembourg | 11 | 13
|
| Cyprus | 2 | 13
|
| Estonia | 4 | 3
|
| Latvia | 2 | 3
|
| Malta | 0 | 1
|
| EU25 Total | 11,758 | 14,615
|
2. Q378, Page 10: To provide a note on the impact of
Gershon on UKTI staffing figures.
1. UK Trade and Investment draw its staff and support
services from the Foreign and Commonwealth Office (FCO) and the
Department of Trade and Industry (DTI) as well as the Government
office network and the private sector. The organisation deploys
some some 2,400 people across the world, including over 300 in
the English regions and some 1,500 overseas across the wider FCO
network in more than 100 countries.
2. Under the provisions of its settlement under Spending
Review 2004, which took account of the Gershon agenda, UK Trade
and Investment is reducing the number of posts in headquarters
offices by 200 by April 2008. This represents a reduction of some
25% of headquarters numbers. The organisation will also reduce
the resource deployed in the overseas operation by £20 million,
from a total value of £140 million. At the same time the
organisation has been building front-line capability in the regions.
3. The 2006 budget statement announced a new focus for
UK Trade and Investment under which the organisation will undertake
a programme of organisational change with the aim of transforming
its effectiveness in marketing the UK economy internationally.
Planning for this change is under way.
3. Q386, Page 13: To provide more detail on the promotion
of energy efficiency in India through JETCO.
Under the auspices of the JETCO initiative the Power Team,
within UK Trade & Investment, commissioned a scoping report
in July 2005 on "The potential business opportunities in
the power sector for UK companies". Members of UK Trade and
Investment's Power Sector Advisory Group carried out the report.
The report identified a number of areas for potential export
and collaborative activity. These included the emphasis on improving
energy efficiency by strengthening transmission and distribution
networks and bring forward end use energy optimisation schemes
such as prepaid and more sophisticated meters. Other areas, which
would contribute to an increase in efficiency, are the optimisation,
management and maintenance of power plant. Other distinct areas
of opportunities/collaboration identified included training ie
capacity building within regulators and consultancy including
market reform and liberalisation advice.
A seminar was organised in March 2006 to disseminate the
report findings to the UK power industry. Speakers included a
senior director from National Thermal Power Corporation (the largest
power producer in India) and the Managing Director North Delhi
Power Limited (a TATA Power and Delhi Government joint venture).
The delegation also had a number of organised meetings including
one with a leading UK supercritical boiler manufacturer. This
manufacturer also attended a meeting, as part of a Joint Power
Sector Working Group, in January 2005 in Delhi where they set
out the benefits of using supercritical boilers. (This company
is already actively building in the Chinese market).
Following on from this seminar, the Power Sector Team and
their Advisory Group is developing a strategy to target the opportunities
in the India power sector, which will add value to UK exports
and to assist the Indian power sector improve its efficiency.
In addition to this, the Climate Change Projects Office (CCPO)
have run three trade missions since 2003. India has approved more
Clean Development Mechanism (CDM) projects than any other country
(currently running at 240). UK companies are investing in CDM
projects in India eg a project co-firing using sugar waste. Several
companies have recently set up CDM project offices in India with
Ecosecurities leading the field (who developed the worlds 1st
CDM project and recently floated on the AIM for $400 million).
In a series of workshops earlier this year, UKTI's Oil and
Gas Team invited relevant speakers from India to present their
views on the current and future opportunities in India for UK
companies in this sector. Although the focus was more in the deep
water and subsea areas, energy efficiency was touched on.
SBGI/UKTI took UK companies to a conference in India in February
where both security of supply and energy efficiency were subjects
within the more overarching geopolitical discussions."
The Indian government has expressed keen interest in energy
efficiency. It figures (R&D, IPR, technology transfer) in
the Indian Non paper ("A new Paradigm for International Co-operation
for Action on Climate change") shared at the Gleneagles (G8)
summit last year. Indians have so far been very pleased and positive
about their involvement in the Gleneagles Summit but are now keen
to see action. Sustainable consumption and production figures
in as a potential area for bilateral co-operation under the India
UK High Level Dialogue on Sustainable development, which was signed
in October last year. India and UK have also agreed to a joint
study on barriers to technology transfer for a low carbon economy,
the contract is now to be finalised"
4. Q418, Page 32: To provide written details of measures
taken by the DTI to inform UK potential exporters about the caste
system.
The Government is committed to ensuring that British businesses
operate to the highest possible standards. This includes taking
account of the social and environmental impact of their activities
worldwide. We firmly believe that everyone is entitled to all
of the rights and freedoms set out in the Universal Declaration
of Human Rights, without discrimination of any kind.
We and our EU partners are committed to human rights and
will continue to raise such issues as discrimination based on
work and descent in our meetings with governments of those countries
affected by this problem. We consider that success in the fight
against racism, xenophobia, discrimination against minorities
and indigenous people is best sought through our efforts to raise
awareness of responsible business behaviour worldwide.
We support a range of international initiatives, which encourage
responsible business practice worldwide. For example the OECD
Guidelines for Multi National Enterprises, which are a baseline
for corporate behaviour to help multinationals to design their
own codes of conduct. They are voluntary but include a mechanism
that allows individuals or organisations to raise potential breaches
of the guidelines with national governments. We are also strong
supporters of the UN Global Compact, an agreement between the
UN and business to uphold and promulgate a set of 10 principles
covering human rights, labour rights, environmental protection
and combating corruption.
Good human rights observance contributes to a stable secure
and prosperous world that benefits us all. The UK played a leading
role in promoting a constructive consensus-based approach to this
issue including in chairing the UN negotiations as part of the
cross-regional group that proposed the Secretary General's Special
Representative position. The mandate of the SRSG includes the
identification and clarification of standards of corporate responsibility
and accountability for business with regard to human rights, as
well as an elaboration of the role of States in effectively regulating
and adjudicating the role of business.
Through our work with the International Labour Organisation
(ILO) we are encouraging India to comply with those ILO Core Conventions
it has ratified—on forced labour and discrimination—as
well as its obligations under the 1988 Declaration to promote
and respect all of the core standards. Ratification of a convention
commits a country to applying the convention in its national laws.
Through our missions overseas, we also continue to seek out
opportunities to work with NGOs in India and elsewhere on caste
and other human rights issues. He British High Commission in New
Delhi has discussed these issues, with reference to specific cases
that have been brought to our attention with the Indian National
Commission for Minorities and with various State level authorities,
drawing their attention to British Parliamentary and public concern.
In addition we are trying to raise awareness of these issues with
Indian companies operating in the UK. The Director for Asia Pacific
at UK Trade and Investment recently met with the India Group in
London, the membership of which comprises CEOs from TATA, Infosys
and ICICI Bank amongst others, to discuss how they can incorporate
corporate social responsibility practices into their operations
in the UK. Many of them already have extensive CRS programmes
in India.
We are also taking part in a tripartite mission to India
in 2006. The mission comprising representatives from TUC, UK Business
and HMG will seek to forge closer links between the unions in
India and the TUC and promoting responsible business behaviour.
5. Q435, Page 40: To write to the Committee to explain
the apparent discrepancy between student visa work permits for
Scotland (two years) and England and Wales (one year).
This isn't a discrepancy, but is related to the different
aims and rationales of the different schemes, as outlined below.
UKvisas recognises the importance of international students to
the UK—not only because of the economic benefits of students
choosing to study here, but also because they can help the UK
to develop and maintain important trade and tourism links with
their home countries.
The new points-based system for managed migration offers
an opportunity to make the student route both simpler and more
robust. Integral to the new PBS is providing more objectivity
and transparency to the decision-making process and a greater
role for sponsors in vouching for the students they want us to
allow into the UK. It will continue to support the Prime Minister's
Initiative in making the system simpler for applicants (with on-line
assessment and clear entry criteria) and by putting sponsors at
the heart of the system.
The Immigration Rules already enable all non-EEA students
who graduate at degree level or above from a relevant UK institution
to switch into an appropriate category of immigration leave, such
as leave as a work permit holder or highly skilled migrant, to
pursue their career in the UK in the long term. These provisions
will continue under the points based system. In addition, students
applying for Tier 1 will be eligible for extra points because
they have chosen to study in the UK.
There are two existing schemes which enable non-EEA students
to gain some work experience in the UK after their studies but
prior to switching into a permanent managed migration route—the
Fresh Talent: Working in Scotland scheme and the Science and Engineering
Graduates Scheme. These two schemes have different aims, and therefore
different requirements and entitlements for the students using
them. However, they are both transitional schemes between studying
in the UK and pursuing a long-term career here. They will both
be incorporated into Tier 1: Post Study of the new points based
system (please see page 24, paragraph 86 of A Points-Based System:
Making Migration Work for Britain).
The Fresh Talent: Working in Scotland scheme was launched
on 22 June 2005. This scheme recognises the unique demographic
challenges that Scotland is facing. The scheme is part of the
Scottish Executive's Fresh Talent initiative, which aims to counter
Scotland's falling and ageing population. It encourages people
to consider living and working in Scotland, as well as supporting
efforts to retain indigenous people who wish to begin, or to further,
their career in Scotland. The scheme is being monitored and evaluated
by the Scottish Executive.
The Fresh Talent: Working in Scotland scheme aims to encourage
those who have chosen to study in Scotland, and have shown some
interest in and commitment to that country, to gain some work
experience in Scotland after study and to consider pursuing their
long-term career there. If they want to switch into leave as a
work permit holder following their time under this scheme, then
they need to hold a valid work permit for employment in Scotland.
2 May 2006
EU25 COUNTRIES EXPORTS TO INDIA 2004-05 MILLION EURO
Total Goods Excluding Diamonds (HS 7102) silver (HS
7106) and gold (HS 7108)
| 2004 | 2005
|
| | |
| Germany | 3,284 | 4,145
|
| UK | 1,752 | 2,135
|
| France | 1,445 | 1,973
|
| Italy | 1,272 | 1,676
|
| Sweden | 784 | 931
|
| Netherlands | 908 | 751
|
| Belgium | 615 | 726
|
| Spain | 379 | 554
|
| Austria | 266 | 404
|
| Denmark | 301 | 335
|
| Finland | 264 | 279
|
| Czech Republic | 163 | 212
|
| Ireland | 69 | 160
|
| Poland | 108 | 130
|
| Hungary | 29 | 36
|
| Slovakia | 21 | 34
|
| Greece | 27 | 32
|
| Portugal | 18 | 26
|
| Slovenia | 14 | 23
|
| Lithuania | 18 | 21
|
| Luxembourg | 11 | 13
|
| Cyprus | 2 | 13
|
| Estonia | 4 | 3
|
| Latvia | 2 | 3
|
| Malta | 0 | 1
|
| EU25 Total | 11,758 | 14,615
|
HS 7102
Diamonds, whether or not worked, but not mounted or set (excluding
unmounted stones for pick-up styluses, worked stones, suitable
for use as parts of meters, measuring instruments or other articles
of chapter 90).
HS 7106
Silver, including Silver plated with gold or platinum, unwrought
or in semi-manufactured forms, or in powder form.
HS 7108
Gold, including Gold plated with platinum, unwrought or not
further worked than semi-manufactured or in powder form.
Source: Eurostat Intra and Extra EU Trade.
| £ million 2005 | UK exports to India
| UK imports from India | UK exports to world
| UK imports from world |
| SITC | |
| | |
| 66: non-metallic mineral manufactures not elsewhere specified
| 1,121 | 89 | 6,905
| 7,591 |
| of which | |
| | |
| 66721: diamonds, rough, unsorted 66722: diamonds, sorted (other than industrial diamonds), unworked or simply sawn, cleaved or bruted
| 1,111 | 40 | 5,066
| 4,902 |
| 66729: diamonds (other than industrial diamonds), otherwise worked, but not mounted or set
| | | |
|
| 68: non-ferrous metals | 267
| 11 | 3,886 | 4,076
|
| of which | |
| | |
| 68113: silver (including silver plated with gold or platinum), unwrought 68114: silver (including silver plated with gold or platinum), in semi-manufactured or in powdered form
| 235 | 0 | 377
| 236 |
| 683: nickel | 14 | 0
| 522 | 356 |
| 28: metalliferous ores and metal scrap |
221 | 3 | 1,730 |
2,223 |
| of which | |
| | |
| 282: ferrous waste and scrap; remelting ingots of iron or steel
| 151 | 0 | 938
| 83 |
| 28823: aluminium waste and scrap | 35
| 0 | 299 | 90 |
| 28821: copper waste and scrap | 31
| 0 | 253 | 25 |
0 indicates less than £0.5 million.
Source: HMRC UK Trade Info.
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