Britain’s Trade Minister Urges Reset of Trading Relationship with the EU
Britain is urgently looking to reset its trading relationship with the European Union, as international commerce plays a vital role in reviving UK growth, according to trade minister Douglas Alexander.
Significant Disruption Caused by Brexit
- Britain’s 2016 vote to leave the EU caused “significant disruption” to its trade policy.
- The country needs to recalibrate its global trade outlook.
Revamped UK Trade Strategy
- Alexander met with the head of the World Trade Organization in Geneva to piece together a revamped, long-term UK trade strategy to be published in spring 2025.
- This move demonstrates the commitment of the incoming government to the WTO and the multilateral trading system.
Political and Economic Stability
British Prime Minister Keir Starmer’s Labour Party aims to bring stability and progress to the economy. Alexander highlighted that Britain will be the most politically stable democracy in the G7 in the coming years, which can positively impact economic stability.
Trade Growth as a Key Mission
- Trade growth plays a critical role in the Starmer government’s mission to grow the British economy.
- Alexander emphasized the importance of trade in bringing economic and fiscal stability.
Pursuing New Opportunities
The UK is keen on resetting its relationship with the EU and exploring new trade agreements worldwide. With 47% of the UK’s trade still with the EU, there is urgency in reshaping this relationship.
Focus on Services and Digital Trade
- Britain, being an 81% services-based economy, has a significant interest in expanding digital trade.
- Alexander highlighted the importance of unlocking opportunities beyond the EU while maintaining ties with the bloc.
Support for the WTO
Alexander sees the WTO as a crucial institution of international cooperation and supports director-general Ngozi Okonjo-Iweala’s bid for a second term. He praised her leadership for bringing authority and credibility to the organization.
Multilateral Trading System
The minister emphasized that the multilateral trading system will be foundational in the UK’s trade strategy moving forward.
Global Trade Forecast
Despite facing significant headwinds, international trade continues to grow. The WTO recently lowered its global goods trade growth forecast for 2025 to three percent.
Challenges and Opportunities
While global growth has been slower than desired, there are still opportunities for countries like the UK to navigate the complexities of international trade and drive economic progress.