Trade with ex-colonies OK with U.K.
Brexit proponents seek alternative EU markets
LONDON — After decades of sidelining the Commonwealth as a relic of their imperial past, many in Britain are now promoting the group of ex-colonies as a ready-made market for what they hope to be the country’s buccaneering global business spirit after the exit from the European Union.
It’s unlikely to be that easy.
At this week’s summit in London of leaders from the Commonwealth, Prime Minister Theresa May and her international trade secretary, Liam Fox, sought to underline the group’s importance to a “Global Britain” after Brexit in less than a year.
Brexit proponents like Fox cast the Commonwealth as a more natural fit for Britain than the centralized EU. Ever since the Brexit vote campaign, they referred to the “old friends” in the Commonwealth, some of whom still have Queen Elizabeth II as their sovereign, use English as their official language, and share a cultural and sporting heritage.
“As the United Kingdom leaves the European Union, we have the opportunity to reinvigorate our Commonwealth partnerships and usher in a new era, harnessing the movement of expertise, talent, goods and capital between our nations, in a way that we have not done for a generation or more,” Fox said.
The potential of the Commonwealth, a varied group of 53 countries that includes Australia, Canada, countries in sub-saharan Africa, many of the islands of the Caribbean and India, is “vast,” according to Fox. He cited forecasts that trade between Commonwealth countries is expected to total $700 billion by 2020, up from $560 billion now.
However, the idea that the Commonwealth can ever match the
EU as a trading partner is widely dismissed by experts, as is the notion that striking new deals will be simpler.
In 2017, nearly half of Britain’s exports went to the 27 other EU countries. Less than 10 percent went to Commonwealth countries. EU states accounted for 7 of Britain’s top 10 export markets.
There’s room for growth, particularly in India, which is one of the fastest-expanding economies in the world. But it’s coming from a low level: Britain sold only 4.4 billion pounds ($6.25 billion) worth of goods to India in 2017 and imported 7.5 billion over the same period.