Intercultural Business News

British businessmen and women from the UK’s defence industry met recently with Turkish officials and procurement officers to discuss initiatives to increase the volume of business done with Turkey within the sector.

The British defence industry has a prestigious worldwide reputation and Richard Paniguian from UKTI seemed assured that the presence of leading Turkish Government officials indicated a serious interest on their part.

Richard Paniguian, speaking after the seminar which was organised by UKTI Defence and Security Organisation, also explained that UKTI DSO “will do all [it] can” to ensure British defence firms have all the knowledge, tools and contacts necessary to further penetrate this “rewarding market”.

Since the seminar the 50 represented British companies have been liaising with both UKTI and Turkish officials to identify possible projects for future collaboration.

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AMR Research recently polled 130 global companies about the factors which contribute to risk in their global supply chains. The findings do not make good reading for China with “respondents overwhelmingly choosing China as the top contributing region for 9 of the 15 risks” the survey investigated.

Among the primary issues raised were risks of product failure, risks associated to the potential infringement of intellectual property rights and security threats.

China does nevertheless hold a number of draws for global companies. AMR Research’s Vice President Noha Tohany explained that,
“the advantages of cheaper materials and labor wages in China as well as the potential to reach vast consumer markets” continue to make China popular with global companies.

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The European Union has announced that it will be initiating disciplinary proceedings against 6 member states for breaking rules governing limits on budget deficits.

The current ruling, under the EU’s Stability and Growth Pact, proscribes that budget deficits should be no more than 3% but latest figures suggest that Ireland, Spain, Latvia, France, Greece and Malta all exceeded this limit in 2008 and are set to do so again in 2009.

The EU have acknowledged that much of this spending is the result of stimulus packages engineered to break the ongoing recession but has warned that it would issue a deadline of March for the member states to bring their public finances back into line with EU policy.

To read more click on the links below.

> BBC News coverage
> EU reports on member states Stability and Convergence Programmes

UKTI Chief Exec. Sir Andrew Kahn was last week in Hungary and Bulgaria to promote the UK’s expertise in environmental technologies. Hungary and Bulgaria are currently in receipt of considerable EU funding for improvements to major infrastructure such as roads, ports and rail links and given the strong relationships the UK already has in the region, Kahn was eager to encourage UK firms to further extend their trade ties with the two former Soviet Bloc countries.

Kahn said:

“UK firms can benefit from opportunities offered by the major infrastructure projects being funded by the EU. These include roads, rail and ports; urban regeneration and environment technologies. These are all areas where the UK has world-leading expertise.”

To read more on Sir Andrew Kahn’s visit click on the link below.

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Last week, as part of the annual UK-China summit being held in London, British Prime Minister Gordon Brown and Chinese Premier Wen Jiabao gave a joint press conference to announce a series of agreements designed to encourage and promote trade between the two countries.
Brown claimed that the deals struck would help double the UK’s exports to China to £10 billion and increase bilateral trade to $60 billion by 2010. Key agreements included a cooperation framework on intellectual property rights, an agreement on promoting UK trade and investment in China’s regional cities, a sub-contract between Airbus and Chinese aviation giants Xian on a wing-equipped project in Tianjin and a framework agreement to establish a long-term strategic partnership between the Chinese Academy of Sciences and BP Global Investments Ltd.
In addition the two leaders agreed that protectionism posed the “greatest threat” (GB) to a resolution to the global recession, and that reforms to international institutions and the creation of an early-warning system for the global economy should sit high on the agenda at the G20 Summit due to be held in London in April.
Other issues discussed during the UK-China Summit included human rights in Tibet, climate change, illegal immigration, cultural exchange programmes and the London 2012 Olympics.
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