Rebalancing the Economy: Trade and Investment

Further written evidence from the British Exporters Association

1. BExA is grateful for the invitation to submit further evidence to the BIS Select Committee following publication of the Trade White Paper.

2. BExA welcomes the Trade White Paper, the co-ordinated approach for support for trade, and the new facilities from BIS and ECGD to finance and protect exports, including bond issue support. We see these new facilities as good stepping stones in the encouragement of exports.

3. BExA would like ECGD to discuss with exporters and their representative bodies

the design, implementation and distribution of the new facilities to ensure they

have a good take-up, are workable, and that commercial finance can be provided

on the back of them. BExA has instigated a working party with ECGD to discuss

structures and wordings

4. The Trade White Paper addresses key export concerns, and we are pleased that a

new Cabinet sub-Committee under the Minister for Trade & Investment has been

established to ensure implementation of the White Paper’s recommendations.

5. There is one bond issue support matter that has not been addressed.

The ECGD bond support facility will be for export only. UK infrastructure

projects also regularly require suppliers to provide on-demand bonds guaranteeing

performance and this is particularly prevalent in publicly-sponsored transportation

projects. Either the requirement from public and governmental bodies for high

levels of bonding in such projects should be scaled back, or a domestic bond

support facility should be provided to enable domestic UK suppliers to compete for

UK contracts on a level playing field with continental suppliers that have

government support for their bond issuance.

4th March 2011