Source · Select Committees · Business and Trade Committee
8th Report - Export led growth: Trade with the Asia-Pacific region
Business and Trade Committee
HC 1048
Published 29 June 2025
Recommendations
1
Acknowledged
Include robust, enforceable intellectual property chapters in all new and updated FTAs.
Recommendation
Asia-Pacific offers vast commercial potential for UK exports of both goods and services, but realising these opportunities for greater trade will depend on overcoming barriers through targeted regulatory diplomacy and sustained engagement through dialogues and trade frameworks. In particular, the …
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Government Response Summary
The government agreed on the importance of trade dialogues for achieving trade outcomes and described its ongoing engagement with Asia-Pacific partners to address market access and regulatory environments. However, it did not explicitly commit to including robust IP chapters in all new FTAs or to allocating specific resources for IP enforcement and promotion.
Department for Business and Trade
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2
Accepted
Utilise trade dialogues in Asia to reduce tariffs, regulatory uncertainty, and enhance intellectual property protection.
Recommendation
The Government should use its full network of trade dialogues in Asia to push for real, commercially meaningful outcomes to drive down tariffs, remove regulatory uncertainty and improve intellectual property protection. In particular, the Department should explore wider use of …
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Government Response Summary
The government agrees on the importance of trade dialogues and states it already uses them to address market access barriers and engage with businesses at various levels, including ministerial dialogues, without committing to new methods like 'between the meeting' task and finish groups.
Department for Business and Trade
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3
Acknowledged
Maintain commitment to Global Combat Air Programme and provide longer-term funding for industry confidence.
Recommendation
The Government must continue its commitment to the Global Combat Air Programme as a conduit to build further on good relations with Japan, a key partner in the region. By recognising the power of such partnerships, and exploring where these …
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Government Response Summary
The government reaffirms its commitment to the Global Combat Air Programme and continued defence cooperation with Japan, highlighting ongoing annual steering panels. However, it only acknowledges the importance of stable funding without committing to the recommended longer-term funding cycles.
Department for Business and Trade
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4
Deferred
Explore widening UK-Japan partnership to include digital, cyber technologies and AUKUS ties.
Recommendation
The UK should explore with Japan the potential to widen the partnership to include digital and cyber technologies, to explore potential ties to the AUKUS programme, and to develop joint exports to allies across the region. 34 Furthermore, the Government …
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Government Response Summary
The government's response focused on the importance of education exports and soft power strategy in the Asia-Pacific region, including ongoing engagement by the International Education Champion and the development of a Soft Power Strategy. This did not address the committee's specific recommendation regarding digital/cyber technologies with Japan, AUKUS ties, joint exports, or deepening economic security dialogues.
Department for Business and Trade
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5
Acknowledged
Confirm education as a priority sector within trade strategy to maximise export potential.
Recommendation
Education and higher education are critical export sectors in Asia-Pacific and strategic enablers of the best possible export environment in the region. The Government’s trade strategy should confirm that education is a priority sector and the Industrial Strategy Council should …
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Government Response Summary
The government acknowledges the importance of education exports and is delivering through its International Education Strategy, having reappointed an education champion. It also notes that embassies have been instructed to consider deploying soft power, and a Soft Power Strategy is being developed, but does not specifically commit to a cross-Whitehall dialogue via the Industrial Strategy Council or a five-year business plan for universities.
Department for Business and Trade
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7
Acknowledged
Shift greater attention to joining open-ended digital agreements for faster market access.
Recommendation
As part of the new trade strategy, the Government should shift greater attention and resourcing toward joining open-ended digital agreements, such as DEPA, that better reflect the Indo-Pacific’s role as the engine of global digital growth, and offer faster, more …
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Government Response Summary
The government states its Trade Strategy intends to explore deepening digital trade cooperation and agreements, including exploring accession to DEPA if in the national interest, but is not yet in a position to confirm seeking accession.
Department for Business and Trade
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8
Accepted
Step up engagement to encourage alignment in digital rules and support WTO e-commerce.
Recommendation
The Government should step up collaborative engagement to encourage greater alignment and interoperability in digital rules, while maintaining strong multilateral commitments. In particular, the Government must continue to support the WTO e-commerce moratorium and the Joint Statement Initiative on e-commerce. …
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Government Response Summary
The government states that the UK is a leading voice at the WTO, actively supports the e-commerce moratorium, and has played a leading role in the E-Commerce Joint Initiative, having joined the resulting agreement in July 2024.
Department for Business and Trade
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9
Acknowledged
Set out plan to promote liberalisation and export of environmental goods and services.
Recommendation
As part of its new trade strategy, the Government should clearly set out how it will promote the liberalisation and export of environmental goods and services, particularly in and to the fast-moving Asia-Pacific region. The strategy must be aligned with …
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Government Response Summary
The government outlined its general engagement with Asia-Pacific markets, including ministerial travel, CPTPP membership, and existing trade agreements, stating that its trade policy aims to generate UK growth through various levers. However, it did not specifically detail how it will promote environmental goods and services exports or align this with the UK's industrial strategy to address strategic dependencies as recommended.
Department for Business and Trade
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11
Accepted
Provide long-term policy certainty to businesses for greater trade with Asia.
Recommendation
The Committee, therefore, calls on the Government to provide long-term policy certainty to businesses navigating rising geo-political and regulatory complexity across the region to enable them to take up the opportunities that greater trade with Asia. It must also continue …
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Government Response Summary
The government states its Industrial Strategy provides long-term certainty and stability, and its Trade Strategy outlines policy priorities, committing to continue engagement with Asian partners. This indicates existing frameworks address the committee's call.
Department for Business and Trade
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12
Accepted
Embed UK in Asia's regional growth corridors through regular ministerial attendance at events.
Recommendation
The Government should look to incorporate regular ministerial and official attendance at key events in Asian economic centres, such as GIFT City in India, where UK exports have the most potential to grow. Diplomatic trade policy should move beyond a …
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Government Response Summary
The government states that Ministers have already engaged extensively across Asia and will continue to do so, highlighting CPTPP membership and ASEAN partnership as ways it is embedding itself in key markets. It also confirms its trade policy goes beyond a solely export-driven model.
Department for Business and Trade
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13
Accepted
Invest properly in tailored trade resources and realign DBT staff for Asian markets.
Recommendation
We agree with Douglas Alexander that the Government’s trade-focused resource must be matched to the potential of the export opportunities around the world. The Government must, therefore, invest properly in trade resources that are tailored to the needs of each …
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Government Response Summary
The government states it is already prioritizing support for businesses in high-opportunity markets and is reviewing the size and shape of its overseas network, informed by analysis from the Global Trade Outlook 2025, to ensure resources are focused on strategic priorities.
Department for Business and Trade
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Conclusions (2)
6
Conclusion
Acknowledged
Asia is fast becoming a key market for digital trade, shaped by divergent data governance models and rapid technological transformation. While regulatory fragmentation poses challenges, it also creates a window for the UK to support greater alignment through trusted, collaborative partnerships. There is a clear opportunity to promote convergence—via CPTPP, …
Government Response Summary
The government acknowledges the importance of digital trade and states its Trade Strategy aims to explore deeper digital trade cooperation, including potentially acceding to DEPA and other agreements, while continuing to lead at the WTO. However, no firm commitments are made regarding new actions or accession.
10
Conclusion
Accepted
The UK’s reputation as a reliable and constructive partner makes it well-placed to navigate Asia’s evolving trade landscape. However, the Committee heard that seizing these opportunities will require a more embedded and consistent approach, underpinned by policy certainty and sustained political engagement at the highest levels. (Conclusion, Paragraph 63)
Government Response Summary
The government stated its continued investment in building deep expertise and contacts in Asia-Pacific markets as part of the Global Trade Outlook 2025, aiming to deliver growth, aligning with the committee's observation on the need for a more embedded and consistent approach.