Skip to content
Search

Latest Stories

Britain hoping for Brexit boost from Commonwealth summit

Britain is hoping this week's Commonwealth summit will prise open greater trade with its historic network as it prepares to quit the European single market under Brexit.

The UK is pouncing on the organisation's analysis showing the advantages of trade between Commonwealth countries due to its common language and legal systems.


But some quarters are warning that Britain's trade with Commonwealth nations lags so far behind that with its European Union neighbours 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.

Born out of the former British empire, the voluntary organisation focuses on development and democracy, but is turning its attention to 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.

"Brexit will have wide-ranging economic implications for the UK, the EU and many Commonwealth members," the report says.

"However, there may also be important opportunities for the UK in the post-Brexit period to... negotiate new bilateral trade agreements with interested Commonwealth members."

- Hard sell -

Britain is going for the hard sell during CHOGM.

The summit proper is on Thursday (19) and Friday (20) but kicks off today with three days of forums and events that lay the groundwork.

Britain's International Trade Secretary Liam Fox on Monday chairs a session on catalysing growth and championing free and fairer trade.

Meanwhile Britain is hosting a reception aimed at showcasing British exports, from food and drink to the English Premier League football trophy.

"You've got some of the fastest-growing economies in the world. It will be a great opportunity for us to rebuild old friendships," British Foreign Secretary Boris Johnson told BBC television.

"A lot of that is going to be on the table at the Commonwealth summit," he said Sunday.

When Britain joined the European Economic Community in 1973, it sidelined historic trading links with its former empire, causing much hurt in some countries.

Britain is due to leave the EU in March 2019. A transition period runs until the end of 2020 after which the UK will be out of the European single market and customs union.

Britain is gearing up to strike its own trade deals outside the single market and is looking to its former global network.

The Economist magazine said Saturday that the Commonwealth "won't save Britain from Brexit", calling the idea that Commonwealth trade 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 accounts for a tenth.

Philip Murphy, director of the Institute of Commonwealth Studies, wrote in The Guardian newspaper: "Sorry, Brexiters. Banking on the Commonwealth is a joke.

"The notion that it can pick up the slack when the UK leaves the EU is nonsense."

- Clean oceans focus -

Given its highly diverse membership, if agreements can be struck within the Commonwealth, they can likely achieve wider support.

At the last Commonwealth summit in Malta in November 2015, leaders struck a deal on climate change that paved the way for the Paris agreement days afterwards.

The theme this time is "Towards a Common Future". The group is hoping to agree an ocean governance charter, a connectivity agenda for trade and investment, and a declaration on tackling cyber crime.

"CHOGM 2018 promises to deliver transformational change for the people of the Commonwealth," said the organisation's Secretary-General Patricia Scotland.

"Immediate impact combined with wider influence make the Commonwealth an unparallelled force for building understanding and cooperation towards realising global goals for social and political progress, inclusive prosperity, and sustainable development."

The summit comes immediately after the 2018 quadrennial Commonwealth Games on Australia's Gold Coast.

Britain last hosted CHOGM in 1997 and is laying on the style.

Queen Elizabeth II, the Head of the Commonwealth, is hosting a dinner for the leaders at Buckingham Palace in London. On Friday they gather in private at Windsor Castle, west of the city.

More For You

UK-Jobs-iStock
People commuting on the London Bridge. (Photo credit: iStock)
iStock

UK job market slows before business tax increases

THE UK saw a drop in the number of payrolled workers and job vacancies in the lead-up to business tax hikes and US tariffs, according to official data released Tuesday.

Preliminary estimates from the Office for National Statistics (ONS) showed a fall of 78,000 in payrolled employees in March compared to February. In February, the number had dropped by 8,000 from the previous month.

Keep ReadingShow less
Mehul Choksi

Choksi, accused in a bank fraud case in India, has been arrested in Belgium and plans to appeal for release, citing medical grounds. (Photo: Getty Images)

Arrest of Mehul Choksi in Belgium Marks Major Break in £1.52bn Scam

Indian jeweller Mehul Choksi arrested in Belgium in £1.52bn bank fraud case

FUGITIVE Indian jeweller Mehul Choksi has been arrested in Belgium and will file an appeal for release, his lawyer told Reuters on Monday. Choksi is accused of involvement in one of India’s biggest bank fraud cases, which came to light seven years ago.

A source from India’s Enforcement Directorate (ED) told Reuters that the Indian government had sent an extradition request for Choksi before the arrest.

Keep ReadingShow less
Jonathan-Reynolds-Getty

'Free and open trade grows economies, lowers prices and helps businesses to sell to the world, which is why we're cutting tariffs on a range of products,' said business and trade secretary Jonathan Reynolds.

Government reduces tariffs on food and everyday products

THE UK government has announced temporary cuts to import tariffs on nearly 90 products, including items such as pasta, fruit juices and spices. The move is aimed at reducing prices for businesses and boosting economic growth.

The Department for Business and Trade (DBT) said the UK Global Tariff will be suspended on 89 products until July 2027. The changes are expected to save UK businesses around GBP 17 million a year.

Keep ReadingShow less
british-steel-iStock
An aerial view of Steel Plant Industry in Scunthorpe. (Photo: iStock)

Government takes control of British Steel under emergency law

THE UK government has taken control of British Steel after passing emergency legislation to stop the closure of the country’s last factory capable of producing steel from raw materials.

The plant, owned by Chinese company Jingye, was facing imminent shutdown. Prime minister Keir Starmer said the government "stepped in to save British Steel" to prevent its blast furnaces from going out.

Keep ReadingShow less