UK eyes trade boost from Commonwealth
The U.K. is pouncing on the organization’s analysis showing the advantages of trade between Commonwealth countries due to their common language and legal systems.But some are warning that Britain’s trade with Commonwealth nations lags so far behind that with its European Union neighbors that a straight replacement is impossible.
The 53 member states are gathering for their biennial Commonwealth Heads of Government Meeting (CHOGM), being hosted this year in London.
The summit proper takes place April 19 and April 20 but kicked off on April 16 with three days of forums and events that lay the groundwork.Born out of the former British empire, the voluntary organization, covering a third of the world’s population, focuses on development and democracy, but is placing greater attention on boosting trade.
Intra-Commonwealth trade is expected to increase by at least 17 percent to around $700 billion by 2020, according to the 2018 Commonwealth Trade Review.There are “opportunities for the UK in the post-Brexit period to... negotiate new bilateral trade agreements with interested Commonwealth members,” the report said.
Britain is set to leave the EU in March 2019. It is seeking new trade deals outside the European single market and is looking to its former global network to make up for any slack.London is going for the hard sell during CHOGM, hosting a reception aimed at showcasing British exports, from food and drink to the English Premier League football trophy.British Prime Minister Theresa May said: “Our Commonwealth family already accounts for one fifth of global trade, and we must continue to work together to build further upon this solid foundation by building on our existing trade links and establishing new ones.”
The Commonwealth’s business chief Jonathan Marland told The Times newspaper that it would be a “dereliction of duty” if Britain failed to boost exports to member states and persuade them to commit formally to free trade.
However, The Economist magazine said the Commonwealth “won’t save Britain from Brexit”, calling the idea that Commonwealth business could replace EU trade “an amiable delusion.”In terms of goods and services trade in 2016, Britain does more business with 15 countries -- nine of them in the EU -- before its biggest Commonwealth trade partners Canada and India.Overall, the EU accounts for nearly half of Britain’s trade; the Commonwealth just a tenth.