Head of Trade Policy, William Bain, looks beyond the State Visit by the German President to look at what’s next for trade relations between our two nations:
This week’s State Visit by the German President, Frank-Walter Steinmeier, is a sign of the growing co-operation and common ties between our two nations. Germany is the UK’s second largest trading partner, by nation.
It is a major investor in our economy, and a solid partner in keeping our continent secure. There are already strong ties between our countries, with healthy flows of business and leisure travel in both directions. And with the potential of further direct train links to Germany, and greater use of e-gates at borders, those will only grow further.
The signing of the Kensington Treaty, in July this year, is proof of the great potential in UK-German co-operation. We both see opportunities to remodel our economies, with a focus on clean energy and sustainability, defence, advanced manufacturing, automotives, pharmaceuticals, semiconductors, business and professional services, and growth industrial sectors.
Siemens’ investment of over £20m in a biomarker facility in Bedfordshire shows the commitment to innovation which our countries share. And UK investment in Germany is also at record levels.
The North Sea is also a shared interest, and we have a common agenda through the North Sea Energy Infrastructure Project. It offers great potential to meet our future energy needs, not only through its oil and gas but also renewables, green hydrogen and hybrid interconnectors.
The North Sea Energy Summit, in Hamburg in late January, is also a key staging post in developing the North Sea as a strategic solution for wider European energy security, both now and in the future.
Our Strategic Science and Technology Partnership will ensure our researchers collaborate on making the most of AI, quantum computing, space, semiconductor and batteries technology. This will keep our advanced manufacturing sectors innovative and competitive globally.
On defence, both countries have shown leadership to build the public and private frameworks we need for increased defence investment throughout the 2020s.
Germany’s £800m investment in UK defence industries, in Telford and beyond, over the next decade creates jobs and secures supply chains. Building on the 2024 Trinity House Agreement on Defence, there are further areas of collaboration where we can combine to meet our responsibilities for a secure Europe within NATO.
These include our work on joint weapons projects and related procurement, undersea co-operation, and German patrol aircraft missions from RAF Lossiemouth.
We look forward to joining UK and German businesses and political leaders in Berlin for next year’s Inaugural Joint Business-Government Forum to mark a year of progress for businesses in both countries.
The aim will be to set an even higher bar for further joint success.