UK on course to strengthen international trade as an independent nation

Summary

  • Of late, the government has been apparently working on a slew of measures that can bolster the trade prospects of the UK as an independent nation.
  • The government, alongside the trade bodies and respective departments, have duly supported the exporters, as well as importers doing trade with the partner EU countries.

The tactical response to the Covid-19 crisis so far by the government of the United Kingdom and the spontaneous measures implemented by the Department for Health and Social Care, especially in the present calendar year, have supported the revival of business confidence with most of the commercial settings eyeing at a fresh piece of revenue in more than a year.

The initial few months of 2021 were quite difficult as the domestic businesses were grappling with the fresh curbs implemented by the government as a part of third national lockdown, at the time when a large section of enterprises involved in international trade with European Union were acclimatising to the new regulations inducted after a mutual agreement between the UK and the EU, post-Brexit.

The government, alongside the trade bodies and respective departments, have duly supported the exporters, as well as importers doing trade with the partner EU countries during the Brexit transition period and after its termination.

Of late, the government has been apparently working on a slew of measures that can bolster the trade prospects of the UK as an independent nation. The actions can certainly help reduce the dependence on the EU countries and improve ties with other non-EU countries. Moreover, these are likely to amplify the trade volumes in the upcoming years as countries recover from the Covid-led distraught.

The Downing Street administration has already started the negotiations with as many as 11 countries, joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These countries possess a joint gross domestic product (GDP) of GBP 9 trillion that include some of the world’s biggest economies as of now and a few immensely growing nations, collectively representing nearly half a billion people.

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With the ongoing deliberations with the countries belonging to the CPTPP, the UK is aiming to capture new markets for its products as well as services which have remained in regular demand in the overseas countries.

A prospective arrangement with these countries will create new opportunities for the UK farmers, inaugurate new international trading lines for services industries, and help in reducing the trade tariffs imposed on the UK exports, including single-malt scotch whisky and cars.

According to the early estimates by the Department for International Trade (DIT), the exports from the UK to countries under the umbrella of CPTPP are expected to increase by 65%, approximately GBP 37 billion by the year 2030. This brings an exclusive opportunity for the UK to capitalise on the dynamically evolving market as nearly two-thirds of the world’s middle classes are likely to be in the Asian region by 2030.

This will not only benefit the exporters or the enterprises that are directly or indirectly involved in the cross-border trade but, on the other hand, the improved partnership and increased trade volume will help sustain the growth of the nation, alongside supporting hundreds of thousands of jobs in Britain.

The designated negotiating teams are supposed to grab good deals for businesses, consumers, as well as producers and small-scale enterprises supporting the bigger cause across Northern Ireland and Great Britain. All this could lead to tariff-free trade between the UK and these countries for nearly 99.9% of the exports, the DIT indicated.

The trade between the UK and CPTPP countries has grown at an annual rate of 8% from 2016 to 2019, registering a total trade of GBP110 billion in 2019. The net exports of goods from the UK in 2019 stood at GBP367 billion.

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