ENGLAND has been granted "dialogue partner" status by the Association of Southeast Asian Nations, UK's Foreign, Commonwealth and Development Office (FCDO) announced on Thursday (5), saying that the partnership is expected to lead to closer cooperation between the UK and the region on a range of issues such as trade, investment, climate change, security, and education.
Britain has been seeking the status as part of its post-Brexit policy shift to focus more on the high-growth economies of Asia and the Indo-Pacific, and away from the EU which it left in 2020.
ASEAN foreign ministers welcomed the UK foreign secretary Dominic Raab in a virtual ceremony as an ASEAN ‘Dialogue Partner’, a status which puts England at the heart of the Indo-Pacific nations, FCDO said, adding that the countries are expected to work on key shared challenges such as maritime security and transnational crime apart from boosting economies through trade, and strengthening cooperation on issues such Covid-19 and climate change.
ASEAN is an influential group of ten member countries in the Indo-Pacific including Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. The group has close diplomatic relations with other world powers including the EU, the US, India and China, and is seen by many as an important forum for discussion of geopolitical issues.
Raab said that UK is the first new country in 25 years to formally become a dialogue partner of the ASEAN bloc.
“This is a landmark moment in the UK’s tilt towards the Indo Pacific. Our closer ties with ASEAN will help create green jobs, reinforce our security cooperation, promote tech and science partnerships, and safeguard key pillars of international law like the UN Convention on the Law of the Sea," Raab said in a statement.
The new agreement will also help the UK to deepen its economic links with ASEAN countries. Total trade between the UK and ASEAN was £32.3 billion in the four quarters to the end of Q1 2021, FCDO said, adding that there is a huge potential to boost this trade while creating jobs at home.
Raab has visited Southeast Asia five times since becoming UK’s foreign secretary.
The announcement comes amid growing UK defence and security cooperation in the Indo-Pacific, as England's Carrier Strike Group, led by the HMS Queen Elizabeth, is in the region and has completed a series of engagements with a range of ASEAN partners, with further interactions planned in the autumn.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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