| In today’s
global economy, the need for businesses to compete internationally
is critical to their long-term success. Businesses,
large and small, engage in international business in
order to make their companies more profitable and increase
productivity.
UK Trade & Investment (UKTI), formed after the merger
of the organisations formerly known as Trade Partners
UK and Invest.UK, works closely with BABi to strengthen
business ties and facilitate commerce between the United
States and Britain.
Our mission is to support UK business wishing to expand
abroad, and overseas businesses seeking to set up in
the UK. In UKTI, we work to strengthen these business
links to ensure complete efficiency in the international
marketplace.
Today, we’re seeing extraordinary activity between
the UK and the US. The facts speak for themselves: UK
goods exported to the US in 2002 totalled £28.38bn.
This makes the UK the sixth largest exporter to the
US. UK imports from the US in 2002 amounted to £26.06bn.
This makes the UK the fourth largest market for US firms.
We are very proud of the fact that US companies continue
to make the UK their top European business location,
with 16.8% of total US investment overseas, and 36.5%
of such investments in the European Union. All of which
makes Britain the “Number One” recipient
of all US global foreign direct investment.
The UK continues to be the leading foreign investor
in the US with £155bn ($283bn) in 2002, representing
21% of total foreign direct investment into the country.
It remains the leading destination for British overseas
investment, which means we are the largest investors
in each other’s economies.
As many US companies have found, establishing a base
in the UK is easy and rewarding. The British government
has pursued policies that promote competition, economic
stability, low inflation and low interest rates. The
UK has great resources, including a friendly business
environment, a skilled workforce and an excellent science
base. The benefits the UK offers to overseas companies
are many. Low rates of corporate and personal taxation
and labour costs are among the most competitive in Europe.
Tax credits for research and development, for example,
make the UK especially attractive for technology companies.
In addition, no taxation on foreign dividend income
and capital gains tax exemption on the sale of subsidiaries
provide strong incentives. Grant assistance is also
available to companies that locate, expand, or modernise
in selected areas.
UK Trade & Investment’s network is available
to assist with partner agencies in regions all the Britain
including Scotland, Northern Ireland and Wales to help
investors plan, establish and expand their projects.
In the US, we have specialist teams working out of
11 offices across the country to inform US companies
about the advantages of investing in the UK. We offer
practical advice for companies that are seeking to locate
in the UK, such as how to apply for entry clearance,
obtain a work permit, and form a company. UK Trade &
Investment also offers detailed information on company
taxation and on the assistance is available to small
businesses.
Once a foreign company has invested in the UK, it is
treated exactly like a domestic business and is therefore
equally able to use UKTI services to expand its UK business
overseas.
UK Trade & Investment, now under its new single
identity, better meets the needs of companies operating
worldwide. We want to help companies realise their international
business potential through knowledge transfer, and on-going
partnership support.
UK Trade & Investment values its relationship with
BABi, and we look forward to continuing to work together
to assist the transatlantic business community.
Sir Stephen Brown is Chief Executive of UK Trade &
Investment, the government body set up to support UK
firms trading internationally and to encourage foreign
investment.
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