Global Arab Network | UK seeks to resume trade with Libya

Translate this article to your language:

GANPublications

e-Publications

Add Site to Favorites

Add Page to Favorites

Make Homepage

Share This Page

RSS Feed

--------------------------------------------------------------------------------------------------------------------
| |

UK seeks to resume trade with Libya

Global Arab Network - David Morgan

Tuesday, 27 September 2011 17:22

Global Arab Network - UK trade with Libya is set to resume at pre-war levels within days with both BP and Royal Dutch Shell are hoping to renew contracts with the new transitional government as soon as possible, Global Arab Network reports.

This week major business conferences that were held in London to discuss the resumption of trade with Libya attracted great interest.

UK Trade and Investment (UKTI) already announced that it has restarted its operations in Tripoli with a small UKTI team forming part of the UK mission in the capital. Diplomatic activities are being re-established following the recognition by the international community of the new Libyan government.

The UKTI team is now engaging with the National Transitional Council (NTC) and other key decision makers in the new administration, and seeking to maximise opportunities for British firms in Libya’s reconstruction and development. It plans to have a much larger team in place by the end of October.

No time is being wasted in getting back to business following the easing of UN sanctions.

One businessman told Lloyd’s List: “As soon as news came through of troops taking the city we were basically seeing orders straight away.” Orders were mainly connected to oil and gas, he added. “It was like someone opened the floodgates. A lot of people want to move things.”

The ports of Tripoli and Misrata are now open again and shipping lines are starting up their services, but ports such as Ras Lanuf and Marsa al Brega are still deemed too dangerous.

According to Lloyd’s List, at issue are letters of credit. If goods don’t arrive at the port of discharge, letters of credit are invalidated, as occurred to goods that were Libya-bound when the conflict broke out. Port congestion is not currently an issue, since carrier services are not yet at their regular frequency.

Meanwhile, Lord Green, the UK Minister for Trade and Investment, arrived in Libya on 26 September to meet members of the NTC for preliminary talks on the potential role for the UK in rebuilding the country’s economy and infrastructure.

While in Tripoli the Minister met NTC Ministers with responsibility for the economy, transport, education and communications. Meetings were also scheduled to take place with the Central Bank, the Libyan Businessmen Council and NTC international advisers.

Lord Green commented: “We completely understand that the immediate priority for the Libyan authorities is restoring security and meeting humanitarian needs; and we fully support them in that. But we also know that getting the Libyan economy up and running is a crucial factor in achieving political progress and stability. The international community, including British businesses, can play a role in Libya’s reconstruction.”

The minister was accompanied by a small business delegation which consisted of representatives from AMEC, Arup, BP, Mott Macdonald, Shell and Serco.

Officials are now monitoring the situation closely to determine when full trade links can be reopened with the country.

Before the conflict erupted, UK business with Libya was worth around £1.5 billion from activities predominantly focused in the oil industry.

In 2010, British exports to Libya were worth £377m, with imports peaking at £1.29bn.

Lord Trefgarne, chairman of the Libyan British Business Council, said trade between Libya and the UK had been “stopped dead in its tracks” by the conflict, but he went on to express confidence that it would begin again “as soon as it is practicable”.

“We are in touch with NTC members and we would hope to be following up as soon as circumstances are right,” he said. “But first there needs to be a ceasefire, and of course Gaddafi has to be found and an interim government put in place. Looking forward, I am optimistic, but not for this week – maybe the week after,” Lord Trefgarne told the Daily Telegraph.

Opportunities for suppliers and investors are likely to emerge with increasing frequency in the coming weeks as the new government in Tripoli establishes itself and once the conflict abates.

Global Arab Network

< Prev		Next >

Last Updated on Tuesday, 27 September 2011 18:56

Add comment

The opinions of the authors in articles published are theirs alone and do not necessarily reflect the views of Global Arab Network
------------------------------------------------------------------------------
Published comments are the opinions of private individuals and do not reflect the views of Global Arab Network