For 40 years, our role as a global trading nation was restricted. Now it’s time to remember who we are
4 min read
For centuries Britain has been the champion of free trade. My department is working hard to make sure will live up to that legacy after Brexit.
Britain’s historic role as a global trading nation is unmatched anywhere in world.
We were among the first countries to recognise the vast potential of free trade and promote its benefits to others.
Our merchants and entrepreneurs put that theory into practice: criss-crossing the globe, striking deals and looking for new opportunities.
Their success not only brought Britain great power and wealth, it also inspired other countries to follow our example, leading to a surge in global prosperity.
The commitment to free trade has remained the foundation of British economic and foreign policy for hundreds of years. And yet, before last July, we had no dedicated department for international trade.
A strange state of affairs with a simple cause: our membership of the European Union, which restricted our ability to act independently of the trading bloc run from Brussels.
In the EU referendum, the British public voted to take back control. They also voted to restore a rich tradition: to make Britain a global trading nation once again. Since its creation, the Department of International Trade has been busy turning that democratic mandate into economic reality.
We have helped secure more foreign direct investment projects than ever before, supported thousands of businesses to export their goods and services, and started work on scoping the potential for future free trade deals.
Britain remains Europe’s number one destination for foreign direct investment. The latest figures show more than 2,200 inward investment projects in 2016-17 – the highest ever – with more than 75,000 jobs created, and almost 33,000 safeguarded – the equivalent of 2,000 per week.
During the same period DIT ministers made over 100 international visits to boost opportunities for British businesses, while helping them export more than £41bn worth of goods and services: most recently driverless cars to South Korea and double decker buses to Mexico.
Now we want even more of the UK’s innovative businesses to export. Our world-leading digital service, great.gov.uk, is putting firms in touch with global buyers and lists thousands of export opportunities at a click of a mouse. We’re also doubling specialist finance and insurance to £5bn, to ensure every viable export deal has a chance to succeed.
With the negotiations to leave the EU underway, my department has been busy preparing the ground and planting the seeds for new trade deals with countries across the world. That included recruiting internationally-recognised trade expert Crawford Falconer, with 25-years’ experience, as our Chief Trade Negotiation Adviser.
We have already established 12 trade ‘working groups’ with 17 countries, from India and Australia, to explore the best way to improve our trade and investment relationships.
Over the Summer I launched one of these groups with the USA, where there is huge potential expand trade with our single largest trading partner. I also travelled to Japan – where Prime Minister Abe agreed to work quickly to establish a new economic partnership when we leave the EU – and Panama, which has the fastest growing economy in Latin America and an emerging British business presence.
When we leave the EU, we want to hit the ground running – and it would be foolish not to. Even the European Commission predicts 90% of global growth over the next 20 years will be outside the EU. So, we must be prepared to use our new flexibilities to forge new trading relationships quickly.
In the coming months, we will continue banging the drum for British businesses across the world. Later this year I will visit Australia and New Zealand, where Trade Minister Todd McClay has already said Britain will be the ‘first cab off the rank’ for new free trade agreements.
Our international economic department will keep expanding: a re-vamped Board of Trade will ensure the benefits of trade are spread across the whole of the UK, while nine new HM Trade Commissioners will be recruited to lead our teams overseas.
During its first 14 months, the Department of International Trade has been busy – and for good reason. For centuries Britain has been the champion of free trade, a role that brought us power and prosperity, and defined who we are.
For 40 years that tradition was restricted but never lost. Nor were our past freedoms ever forgotten. Now it’s time to remember who we are and become a global trading nation once again.
Liam Fox is Conservative MP for North Somerset and Secretary of State for International Trade and President of the Board of Trade
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