Britain is back and ‘open for business’, says trade policy minister on boosting economic ties

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Southeast Asia is among the key engines of global growth in the years to come and poses “a huge commercial market”, said British Trade Policy Minister Douglas Alexander.

The region has a population of about 680 million people and an estimated total gross domestic product amounting to approximately US$3.6 trillion. 

“There are real opportunities, both for investments into the United Kingdom and exports from the UK to this global growth pool,” said Mr Alexander, who is currently in Laos to attend the Association of Southeast Asian Nations (ASEAN) Economic Ministers’ Meeting. 

“We are here with a very straightforward and open message: Britain is back and we’re open for business,” he told CNA on Wednesday (Sep 18).

BOOSTING TRADE TIES AROUND THE WORLD

Britain, under the new Labour government, is pursuing new trade ties with the rest of the world.

British Prime Minister Keir Starmer has made economic growth the central mission of his administration, and sees giving businesses access to international markets as a key step.

Mr Alexander said the UK is taking a “twin-track approach” to trade. 

“We are seeking to reset and rebuild our trading relationships with our neighbours and partners in the European Union,” he added. 

“At the same time, we’re seeking to seize the opportunities of strengthening our trading relationships right around the world.”

The UK has been pursuing a range of free-trade deals since its departure from the EU. 

“In every trade deal, there are complexities, there are challenges, there are negotiations that need to be resolved,” Mr Alexander noted.

“But I genuinely believe that liberalising trade and securing effective free trade agreements can be actual win-wins for both of the parties.”

By the end of this year, the UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an Asia-Pacific trade bloc. 

“That’s a market of about 600 million consumers. It includes some of the most dynamic growing economies anywhere on earth,” said Mr Alexander. 

“So, that’s a good example of the kind of modern trade deal that the UK is looking forward to striking now and in the years ahead.”

GEOPOLITICS SPILLING INTO ECONOMIC SPHERE

He recognised how regional groupings are critical amid rising protectionism in recent years. 

“We need to continue to make the case that we can rise and prosper together,” he noted. 

“In some parts of the world, new barriers are going up. That’s why it makes it all the more important that countries of goodwill and shared concerns are able to work together to take down unnecessary trade barriers.”

This comes as geopolitics is increasingly spilling into the economic sphere. 

Several UK ministers are in the Indo-Pacific region this week for various talks, to show the Labour government’s new approach on the world stage. 

“The Indo-Pacific is basically the fastest growing region in the world,” said British Minister for the Indo-Pacific Catherine West on the sidelines of the Milken Institute’s Asia Summit in Singapore. 

While there are many opportunities available for its businesses, Britain also has “a lot to offer” the region, including areas such as education, climate change and culture, she told CNA on Wednesday. 

“We’re open for business,” she said, echoing Mr Alexander. 

“We’re going to have a sense of predictability, so that people are very clear that they can invest in the UK and we can have investments here in the Indo-Pacific. Together, we can have that prosperity that we all wish to see.”

REDEFINING RELATIONSHIP WITH CHINA

In particular, the UK is conducting an audit of its muddled relationship with China, one of its largest trading partners, across a range of interests. 

“There’s been lots of talk that China was a threat, and then before that it was a golden opportunity, and at other times not really saying very much at all,” said Ms West, referring to the previous government’s position as it sought to balance security concerns and economic pressures. 

“All those messages got very confusing. So what we wish to do as a very stable, long-term government is to audit our current arrangements within our departments and also to give our businesses lots of clarity on where we see the opportunities.”

She added that the move would help “develop language which is extremely clear, so that our businesses know that we are behind them when they’re doing business in China”. 

When asked about the Labour government’s stance on Taiwan, Ms West said the UK hopes to foster dialogue. 

“We see peace and stability as the only answer to that particular difficult nut to crack,” she added. 

“We want to be there to encourage everybody to be nice and stable, nice and predictable, so that we can get on with what we all want to do, which is just to pursue prosperity.”