Downtown of Johannesburg, South Africa

New global train, plane and submarine deals to create jobs

British workers are set to benefit from a major package of international trade deals that will see the UK build and maintain trains, planes and submarines across the world, announced by the Prime Minister during the G20 summit in Johannesburg.

The agreements form part of the government’s campaign to open new markets for British businesses, create jobs and strengthen the UK’s position as a global leader in engineering, transport and defence.

As part of the new rail partnerships, a new UK-South Africa agreement will see Crossrail International provide strategic advice to reform South Africa’s rail system, driving private investment and creating opportunities for British firms in freight and passenger rail. Alongside this a landmark UK-Vietnam partnership will deliver digital transformation across Vietnam’s railways, leveraging UK expertise from projects like the Elizabeth Line.

British Steel will also supply an additional £35m of products for Türkiye’s high-speed rail network, building on last year’s similar-sized deal.

Regarding aviation, Rolls Royce will supply and service jet engines for Air Algerie in a £370m deal, supporting 14,500 jobs in Derby and boosting UK aerospace exports.

British defence company Babcock has also secured its first South African defence contract to assess and maintain Type 209 submarines, marking a significant milestone in UK-South Africa naval collaboration. As well as this, a first-of-its-kind Authorised Economic Operator Mutual Recognition Arrangement between the UK and South Africa will cut red tape, simplify trade and unlock £400m–£700m in export opportunities over five years.

Education will also benefit, with Pearson has announcing £50m in exports to Brazil, to deliver English language training, digital platforms and assessment services.

Prime Minister Keir Starmer commented:

“Working with international partners to deliver jobs and opportunity at home is a one-way ticket to growth.

“The UK is a world leader in engineering, from steel welders in Scunthorpe to technicians in Derby, British workers are powering the world through their skill and profession.  

“I am determined to open more doors for British businesses across the world so together we can drive growth, create highly skilled jobs to drive down the cost of living, and deliver opportunity to people across the United Kingdom.”

Global trade QUOTE

Trade between the UK and South Africa already totals £12bn annually, and these agreements will make trade simpler, faster and more reliable for nearly 600 UK businesses and 99 South African exporters.

 

Image credit: iStock

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