Asia-Pacific deals targeted in UK bid to diversify trade

TRADE DEALS with Australia and New Zealand will enable Britain to “make good on the promise of Brexit”, the International Trade Secretary has said.

Publishing the UK’s negotiating objectives, Liz Truss said pivoting towards the Asia-Pacific region would diversify trade and increase the resilience of UK supply chains.

The Government hopes trade agreements with Australia and New Zealand will aid the coronavirus recovery by opening up new markets for businesses and creating jobs.

Its analysis suggests the value of UK exports to the two countries could increase by £1bn as a result of trade deals.

Drinks companies, the automotive industry and professional services firms – as well as small and medium-sized businesses – are expected to benefit from a trade deal.

The agreements are also set to include chapters on digital trade.

Britain is seeking to sign trade deals which can come into force after December 31, when the Brexit transition period ends. Talks with the EU, US and Japan are ongoing.

The first round of trade talks between the UK, Australia and New Zealand is expected to begin – via video conference – in the coming weeks.

Ms Truss said: “Our new-found status as an independent trading nation will enable us to strengthen ties with countries around the world.

“Ambitious, wide-ranging free trade agreements with old friends like Australia and New Zealand are a powerful way for us to do that and make good on the promise of Brexit.

“Pivoting towards the Asia-Pacific will diversify our trade, increase the resilience of our supply chains and ensure the UK is less vulnerable to political and economic shocks in certain parts of the world.”

Stephen Phipson, chief executive of manufacturers’ organisation Make UK, said new trade opportunities and an emphasis on digital trade to boost business would be welcomed by British industry.

Federation of Small Businesses (FSB) national chairman Mike Cherry said: “The UK is embarking on an ambitious new era of independent trade and these new deals are critical to the success of small businesses as well as the wider economy.”

Meanwhile, Michael Gove says the UK is “ready to be flexible” in order to secure a trade deal with the EU.

The Cabinet Office Minister said UK and EU negotiators will meet weekly in July with a “keen focus on finding an early understanding” on the “principles which will underpin a broad agreement”.