Table of Contents

List of figures.............................................................................................................................3

1. Introduction............................................................................................................................4

2. Immigration and trade policies in United Kingdom..............................................................4

2.1. Immigration policies.......................................................................................................4

2.2. Trading policies in UK....................................................................................................5

2.2.1. Trading policies of UK related to the Food and Agricultural products...................7

Laws related to food products in UK.................................................................................7

Labeling requirements........................................................................................................8

Packaging...........................................................................................................................9

3. Impact of migration trade on UK.........................................................................................10

4. Trade agreements of UK with other countries.....................................................................11

5. Border openness...................................................................................................................12

6. Geographical location and impact on trade..........................................................................12

References................................................................................................................................12

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List of figures
Figure 1 Day trading process in UK..........................................................................................7
Figure 2 Example of food labelling in UK – chocolate advent calendar...................................8
Figure 3 Color coding of food products in UK..........................................................................9

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1. Introduction
The report analyzes the UK's immigration and trade policies and their impact on regional
trade patterns. It focuses on the points-based immigration system prioritizing students, skilled
professionals, and those with job offers. The study explores concerns about pricing and job
competition for native workers, while also highlighting how immigration contributes to
economic growth and efficiency.

The report discusses the UK's pursuit of new trade deals outside the EU post-Brexit to
strengthen economic ties. It examines the advantages of the UK's open borders and its
strategic location at the crossroads of Europe, influencing trade practices.

Furthermore, the report examines how multinational companies introduce products in the
UK, including trading and shipping procedures and adherence to packaging regulations. It
stresses the importance of understanding immigration and trade rules for policymakers,
businesses, and researchers to capitalize on available opportunities in the modern world.

2. Immigration and trade policies in United Kingdom

2.1. Immigration policies
The United Kingdom's immigration policies underwent significant changes after its exit from
the European Union (Brexit) (Team, I. 2023). The UK implemented a points-based system,
ending free movement, and introducing new regulations effective from 1 January 2021. Some
important points have been demonstrated below.

 Points-Based System: The UK adopted a points-based immigration system to govern who

has the right to visit or stay in the country. The system categorizes individuals based on
points they accumulate from various attributes.
 Electronic Travel Authorisation (ETA): As part of Brexit-related changes, the UK
planned to introduce an Electronic Travel Authorisation system to pre-check migrants
traveling to the country.
 Sponsorship: The new immigration system requires applicants to have sponsorship from
UK organizations registered on the UK Border Agency's list of sponsors to be eligible for
certain categories of visas.
 Skilled Worker Visa: Under the points-based system, the Skilled Worker route allows
individuals to work in the UK. It requires a minimum of 70 points, which can be acquired

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 through factors like offer of employment, appropriate skill level, English language
proficiency, and salary level.
 Graduate Route: The UK introduced the Graduate Route for international students who
complete a UK degree or eligible qualification, allowing them to work in the UK for up to
2 years. The High Potential Individual Visa was later introduced for graduates from non-
British universities ranked in the top 50 of international university rankings.
 Tier 1 (Entrepreneur) and Tier 1 (Investor): These categories were intended for
entrepreneurs and investors who wish to start or take over businesses in the UK or invest
capital. The Tier 1 (Entrepreneur) route was eventually closed, and the Graduate
Entrepreneur route was introduced for international graduates pursuing business ventures.
 Tier 2 (General): The Skilled Worker category replaced the Tier 2 (General) route, which
had been in place since 2008. The new system includes several changes, such as the
removal of the annual cap and lowering education qualification levels.
 Tier 3 (Suspended) and Tier 4 (Replaced): Tier 3 was designed for low-skilled workers to
fill temporary labor shortages, but it is currently suspended due to a strong supply of labor
from the European Economic Area (EEA) (Immigration policy of the United Kingdom
2023). Tier 4, which covered student visas, was replaced by the New Student Route under
the new points-based system.

2.2. Trading policies in UK

There is a free and fair trade in UK, that is crucial to the success of the economy of UK and
the global economic condition. In UK, international trade is responsible for nearly half of the
GDP of country. The UK considered the decision to walk away from the EU as an
opportunity to establish a more powerful fairer, and prosperous nation that is accessible and
outward-looking. Two significant pieces of regulation were submitted to get ready for a post-
Brexit situation and run an independent trade policy (UK trade policy: A guide to new trade
legislation , 2022).

1. The Trade Bill: The law, introduced on November 7th, 2017, provides the UK with
the legal framework and authority to pursue an independent trade strategy. It allows
the creation of laws to support trade agreements with current third-country partners,
aiming to prevent disruptions for UK firms and consumers. Additionally, it ensures
access to public contracting opportunities for UK enterprises and establishes a new
framework for trade procedures to protect local businesses from unfair trade practices.

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 2. The Taxation (Cross-border Trade) Act: This act, which received Royal Assent on
13th September 2018, establishes a standalone customs regime and ensures that VAT
and excise arrangements function effectively after Brexit. It enables the UK to charge
customs duty on goods, define customs duty rates, and request, collect, store, and
share tax-related information.

Key policies and measures in the Trade Bill include:

 Maintaining membership of the Government Procurement Agreement (GPA) to

ensure access to public contract opportunities worth approximately £1.3 trillion per
year.

 Enabling the adoption of deals with existing EU third country trade partners, ensuring
a smooth transition of trade agreements.

 Establishing the Trade Remedies Authority, an independent body responsible for

investigating and addressing unfair trade practices.

 Ensuring data collection and sharing to facilitate essential trade functions and inform
trade policy.

To capitalize on transient price changes, day trading, which involves exchanging financial
assets within a single day, is the most well-liked trading strategy in the UK. Almost 24-hour
trading is available; thus, it is not just for markets with set closing times. The market that one
chooses will rely on their own interests, budget, and time commitment. Shares are a common
market for day trading and beginning favor it for its variety. Positions are liquidated by day's
end to prevent "gapping risk." Forex offers a wide variety of currency pairs and strong
liquidity, which helps traders avoid overnight risks and rollover costs. Indices include betting
on the performance of a group of shares. This has illustrated in figure 1.

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 Figure 1 Day trading process in UK

2.2.1. Trading policies of UK related to the Food and Agricultural products

Laws related to food products in UK
The UK's food law is based on EU food law, and the European Union (Withdrawal) Act of
2018 transposed pre-existing EU law into UK law on January 31, 2020, resulting in "retained
EU law." UK authorities enforce food regulations consistently, and the UK has a well-
regulated and scrutinized food market. The Food and Agricultural Import Regulations and
Standards (FAIRS) report by the U.S. Mission to the EU is a resource that importers can use
for more information.

International trade policy, including agricultural biotechnology and organic standards, is

controlled by the Department for Environment, Food, & Rural Affairs (Defra). In order to
import animal or plant goods, the Animal and Plant Health Agency offers guidance and
support. For all food items marketed straight to users, the Food Standards Agency (FSA) is in
responsibility for assuring food safety and standards. It also evaluates agricultural
biotechnology products for use in human and animal feed.

Food intended for human consumption must meet general food safety requirements of
retained EU law. Compliance with UK food regulations and standards is essential for
exporters seeking to enter the UK market. Importers are responsible for ensuring legal
importation and proper paperwork for shipments, and port health officials are helpful in
ensuring all import conditions are met. The "Home Authority Principle" allows businesses to
seek advice and support from their local Trading Standards office. Enforcement actions for
non-compliance may vary depending on the nature and public health implications.

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UK buyers may request detailed information on the sources of individual ingredients in food
products to ensure traceability and identify any undesirable or illegal ingredients in the
UK/EU.

Labeling requirements
The stick-on label with mandatory information is accepted by some UK Trading Standards
and nutrition and health claim policies are aligned with those inherited by the EU. Label
conversion for the UK market can be complex. The Department for Environment, Food and
Rural Affairs (Defra), the Food Standards Agency (FSA), and the Department of Health are
in charge of the laws and policies governing food labelling in the UK. With tiny regional
variances, Scotland, Wales, and Northern Ireland all stick to the same labelling regulations.
When an example of a UK food label (Figure 2) for a chocolate advent calendar is
considered, It highlights the allergens in bold and the format of the "Nutrition" panel.
Additionally, it mentions the voluntary "traffic light labeling" system for front-of-pack
nutritional information used by many UK manufacturers and retailers (Food and Agricultural
Import Regulations and standards, 2021).

Figure 2 Example of food labelling in UK – chocolate advent calendar

The UK government focuses on reducing greenhouse gases associated with food production,
and the recyclability of packaging is a significant concern, especially for plastic. Colour
coding in label is not required by law in UK. But many private label products sold in the UK
by manufacturers and retailers feature front-of-pack nutritional information that is color-
coded according to a method known as "traffic light labelling” (Figure 3).

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 Figure 3 Color coding of food products in UK

For many kinds of food items, the UK has particular rules and labelling requirements.

 Health and Nutrition Labels: Special use food claims, such as "gluten-free," are restricted.
 Biotechnological products, food for animals biotech products, wine, beer, and other
alcoholic beverages are all under the Food Standards Agency's purview. The labelling
standards for allergens need to be met by all alcoholic beverages.
 Organic Foods: The UK has an equivalence arrangement with the US, allowing organic
products certified to either USDA or UK organic standards to be labeled and sold as
organic in both countries.
 Frozen Foodstuffs: The Food Standards Agency is responsible for frozen foodstuffs,
governed by specific regulations (Quick-frozen Foodstuffs Regulations).
 Vertical Legislation on Specific Products: The Department for Environment, Food &
Rural Affairs handles vertical legislation for specific products like sugars, cocoa and
chocolate products, honey, fruit juices, preserved milk, coffee extracts, chicory extracts,
and fruit jams.
 Plant-based Meat and Dairy Alternatives: No legal definitions exist for terms like
"vegetarian" and "vegan," but labeling of plant-based alternatives cannot use dairy-related
names like "cheese," "butter," or "milk," following the EU's position.

Packaging
The basic rules for UK packaging law are established by the Packaging (Essential
Requirements) Regulations.

The National Measurement Office (NMO), a division of the UK's Department for Business,
Innovation and Skills (BIS), is responsible for administering the weights and measures
legislation. Local enforcement is carried out by Trading Standards Departments of local
councils ( Food and Agricultural Import Regulations and standards, 2021).

Responsibility for Packaging and Packaging Waste Regulations is divided between the
Department for Environment, Food & Rural Affairs (Defra) and the Department for Business,

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Energy, and Industrial Strategy (BEIS). BEIS handles the EU Packaging and Packaging
Waste Directive and the UK's domestic Packaging (Essential Requirements) Regulations
2003. Defra leads on UK waste policy and domestic implementation of the Packaging
Directive through the Producer Responsibility Obligation (Packaging Waste) Regulations
2005.

WRAP (Waste and Resources Action Programme) is a not-for-profit organization working

closely with the government and businesses to promote sustainable change in supply chains
towards achieving net zero greenhouse gas targets. The UK's national approach to materials
in contact with food is governed by the Food Standards Agency and The Materials and
Articles in Contact with Food Regulations 2012. It consolidates retained EU regulations and
directives and includes plastics, ceramics, and epoxy derivatives.

3. Impact of migration trade on UK

The country's trade and economy may be impacted by migration in both favourable and
unfavourable ways (Migration and mobility between the UK and EU after, 2018).

Positive Impacts:

1. Skilled Labour Force: Migration attracts skilled experts, researchers, and

businesspeople, benefiting various sectors like healthcare, technology, and finance. A
trained workforce enhances productivity and innovation, making industries more
competitive on a global scale.

2. Consumer Base: As a result of an increase in immigration to the UK, the customer

base may become more diverse and expansive. So, the demand for the products and
services increases. In order to fulfill the increasing demand trade opportunities with
other countries are developed by encouraging economic growth.

3. Export Opportunities: Immigrants usually maintain close contacts with their native
countries, which fosters rising trade and investment between the UK and their
countries of origin.Because of this, UK companies and goods may be able to sell their
goods abroad.

4. Facilitating Cultural Exchanges: Migration enables the UK and other countries

exchange and comprehend cultural ideas. As a result, trade ties with other nations

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 may improve and British goods and services may be more appealing to overseas
consumers.

Negative Impacts:

1. Disturbances to the Labour Market: A significant influx of immigrants, particularly in

certain industries, may lead to disruptions to the labour market and wage pressures on
local workers. For some UK citizens, this may lead to affects about a tight labour
market and stagnant wages.

2. Pressure on Public Services: Public services like healthcare, education, and housing
may experience stress from a big population growth brought on by migration. The
entire quality of life for immigrants and UK natives may be impacted if this burden is
not properly managed.

3. Social Difficulties: excessive amounts of migration can occasionally result in social

discord and conflicts between cultures, which may negatively impact societal
cohesiveness and, in extreme circumstances, provoke hostility towards immigrants
and international trading partners.

4. Brain Drain: While immigration can draw skilled employees to the UK, it can also
cause a "brain drain" from the countries of origin, where the loss of skilled workers
could harm those nations' economies and trading potential.

4. Trade agreements of UK with other countries

Since establishing an independent trade country, the UK has taken an active position in a
number of trade accords. As of June 2023, it had more than 70 active trade agreements,
which facilitated trade with nations like Australia, New Zealand, Singapore, Japan, and EU
member states (Trade, D. for B. and 2023). Additionally, the UK has agreements with
Madagascar and Comoros under the economic partnership agreement with nations in Eastern
and Southern Africa, but agreements like these have not yet come into effect.

Additionally, the UK is negotiating new trade deals with a number of other nations.
Progressing negotiations with Israel, Canada, Mexico, Canada, and the Gulf Cooperation
Council are among its top priorities for 2023 (Trade, D. for B. and 2023). The
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an
agreement that was recently reached by the UK.

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The UK consults with the general people to get their opinions on how to improve or change
the existing trading arrangements before commencing new trade agreements. The UK's
strategy for upcoming trade agreement negotiations is shaped by these discussions.

5. Border openness
The UK's open borders have been a source of debate, particularly throughout the Brexit
negotiations. Although the UK maintains relatively open borders with nations with which it
has cordial diplomatic ties, Brexit changed how individuals moved between the UK and EU
member states. The implementation of the points-based immigration system represented a
change towards a more regulated immigration strategy. However, if trade agreements and
geopolitical conditions shift, this may alter over time.

6. Geographical location and impact on trade

The UK's geographic location has historically provided a considerable trading advantage.
United Kingdom plays a crucial role in trading between the continents and other areas as it
has been situated at the nexus of Europe. The important ports like London, Liverpool, and
Southampton, create a connection between the UK and other regions of the world while
having fostered maritime trade (Matthew W. 2020). There are two important channels which
enables the entering and leaving of the products of the nation. They are the English Channel
and the North Sea. Due to the geographical location of UK, it has been reupdated as a
financial and trading center. The UK's trade future, however, faces uncertainty due to
changing global trade patterns and the effects of Brexit. In furthermore, additional factors
such as trade agreements, economic policies, and market access are all very important in
deciding how successful a trade will be.

References
1. Team, I. (2023) Immigration rules changes 2023, Davidson Morris. Available at:
https://www.davidsonmorris.com/immigration-rules-changes-2023/ (Accessed: 02
July 2023).
2. Updated immigration rules to the UK, commencing 12 April 2023 (no date) Brand.
Available at: https://www.rlegal.com/news/updated-immigration-rules-to-the-uk-
commencing-12-april-2023/ (Accessed: 02 July 2023).
3. (2021 a) Report name: Food and Agricultural Import Regulations and standards ...
Available at:

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 https://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/FoodandAgricult
uralImportRegulationsandStandardsCountryReportNewDelhiIndia12312020.pdf
(Accessed: 21 July 2023).
4. (No date b) A radical departure: Migration and mobility between the UK and EU
after ... Available at: https://epc.eu/content/PDF/2020/11_A_radical_departure.pdf
(Accessed: 21 July 2023).
5. Immigration policy of the United Kingdom (2023) Wikipedia. Available at:
https://en.wikipedia.org/wiki/Immigration_policy_of_the_United_Kingdom
(Accessed: 21 July 2023).
6. Trade, D. for B. and (2023) The UK’s trade agreements, GOV.UK. Available at:
https://www.gov.uk/government/collections/the-uks-trade-agreements (Accessed: 21
July 2023).
7. UK trade policy: A guide to new trade legislation (2022) GOV.UK. Available at:
https://www.gov.uk/government/publications/a-uk-trade-policy-a-guide-to-trade-
legislation/preparing-for-a-uk-trade-policy-a-guide-to-trade-legislation (Accessed: 21
July 2023).
8. Matthew W. (2020) the geographical pattern of UK trade. Available at:
https://researchbriefings.files.parliament.uk/documents/CBP-7593/CBP-7593.pdf
(Accessed: 21 July 2023).

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