Ranil Jayawardena: A strong trading partnership with India will be a central feature of Global Britain

10 Feb

Ranil Jayawardena is Minister for International Trade, and is MP for North East Hampshire.

Benjamin Disraeli once said that the secrets to success in politics were to “be amusing, never [to] tell unkind stories and above all, never [to] tell long ones.” I will make sure to abide by the latter two rules here, though sadly I cannot promise you the former!

The great Conservative Prime Minister once also, perhaps rather more prophetically, opined that “there is no education like adversity.” And, as the world recovers from the unprecedented impact of Covid-19, this Government will use key lessons we have learned to build our economy back better, stronger, and more resilient in the months and years ahead.

Trade will be pivotal to this great endeavour, driving growth throughout the United Kingdom, generating jobs, fostering innovation, and creating prosperity in every corner of our country.

Using our newfound freedom, we will seek to forge even deeper and stronger trade ties with our friends around the world, including with the world’s largest democracy: India.

Liz Truss, our Trade Secretary, and I have had countless video calls with our counterparts since last year, and Truss is in India this week to take forward the opportunities built for closer collaboration between our nations. She will outline our commitment to strengthen the United Kingdom–India Enhanced Trade Partnership (ETP), a landmark moment on the road to a future Free Trade Agreement. The ETP will, itself, bring economic benefits, address key barriers, boost trade and investment, and create more jobs in both countries.

It is clear we must work side-by-side with other enterprising free trading nations to overcome the challenges posed by Covid-19 and embrace the enormous opportunities for global economic growth to come, so that future generations are not left shouldering the burden of the pandemic.

Trade will fuel the engine of British growth, as we plot a new path for ourselves as an independent trading nation – opening up fresh opportunities for budding exporters from Peterhead to Penzance, Bathgate to Ballymena, and Altringham to Aberystwyth, as we level up opportunity across the country. And it will bring us closer, culturally and economically, to likeminded nations, as we forge new bonds of prosperity worldwide.

In fact, it is the global pandemic that has highlighted the importance of keeping trade flowing and supply chains open – as the spectre of protectionism has reared its head once again.

Throughout the crisis, Britain and India have worked together to create ground-breaking solutions to the challenges presented by Covid-19, spearheading the drive to make sure that vaccines are distributed fairly, which is key to reopening the world’s economy. And our nations will continue to work side-by-side to develop the vaccines of the future, through the joint United Kingdom-India vaccines hub we launched last year, sharing best practice for regulation, clinical trials, and fostering innovation as we place ourselves at the vanguard of change in this field.

A truly Global Britain – a beacon of free and fair trade – will work with our friends and partners, like India, to overcome barriers to international commerce wherever we find them, using our seat in the G7, the G20, the WTO and other fora.

As two of the world’s most dynamic, innovative and truly global trading nations, Britain and India can help lead the world in harnessing the economic potential that only free trade can bestow. It’s this potential – harnessed by this Government – that will create opportunities for the next generation. For those in school, college or university – at this most difficult of times – Britain setting sail to trade with the world should provide hope. We stand tall in the world.

People want to do business with us. We are committed to playing our role beyond our shores. It is this global outlook that will provide our whole nation the exciting future we deserve, from generation to generation.

Free Trade Agreements with countries worldwide will be pivotal in building this truly Global Britain. I wrote on New Year’s Day that we have had agreed deals with 63 countries outside the EU. It is now 64, plus the EU, accounting for £889bn of our bilateral trade. No other country has ever negotiated so many trade deals simultaneously, nor with the same ambition.

The voice of British business – including the small and medium-sized firms that form the backbone of our economy – has been heard loud and clear throughout this process, and we want to expand this national conversation even further, as we build a trade policy that works for every part of Britain, and every generation.

That’s why, as much as it is right to celebrate our growing trade and investment relationship with India, worth almost £24 billion a year, supporting more than half a million jobs in each other’s economies, it is right to go further for the future.

We are already the largest European market for India’s goods exports, with hundreds of Indian companies doing business across our country, employing more than 80,000 people. But we can do even more. By taking our trade to new heights, our two great independent trading nations are helping support our shared values – of democracy, freedom, and protection of the environment – worldwide.

These fantastic agreements will provide the charge that powers the British economy forward, as we spearhead work to develop pioneering solutions to the great challenges the world faces, securing the opportunities that the country has called for.

Central to this is perfecting green technologies, from renewable energy to carbon capture storage, which will help build a cleaner, greener, more sustainable global economy, particularly as Britain progresses towards net zero carbon emissions by 2050. As we prepare to host COP26, we will work with India to develop the green technologies that will transform the way people live and work worldwide as we help build back better from the pandemic globally.

So, as we look ahead to a better, bolder, brighter era for international trade and investment, we want Britain to set her course to the heart of the action, driving change and fostering progress and innovation worldwide.

After all, as Disraeli recognised a century and a half ago, it is only by embracing the challenges of the present that we can help shape the world of the future.

Ranil Jayawardena: The trade deals keep coming. And today, as the new EU agreement takes effect, we look forward to more.

1 Jan

Ranil Jayawardena is Minister for International Trade, and is MP for North East Hampshire.

In 2019, I voted against Theresa May’s deal three times. Not because I wanted to leave the EU with No Deal, but because I believed we deserved better. This was the view of the British people too and, as Boris Johnson, David Frost and their team have proven, a better deal was possible. It is this deal – in force from today – that unleashes Britain’s potential, at home and around the world.

We are no longer restricted by the EU and can demonstrate our true potential on the world stage. In the last few weeks, I am delighted that we have secured trade deals with our good friends in Kenya, Vietnam, Singapore, and many more. Just this week, we signed a trade agreement with Turkey, a major win for British automotive, manufacturing and steel industries. These deals are only the tip of the iceberg in our mission to establish a truly Global Britain, leading from the front and championing free and fair trade.

In just two years, the United Kingdom has agreed trade deals with 63 countries outside the EU, from Japan and South Korea to Moldova and Mexico. This in itself is an unprecedented achievement, as no other country has ever negotiated so many trade deals simultaneously.

We’ve secured preferential trading terms for some £217 billion in non-EU bilateral trade, including the deal we signed with Japan – negotiated in record time and virtually – which guarantees better provisions for our world-leading services, digital and data sectors.

Britain is – once again – an independent trading nation, free to look beyond the horizon and seize the opportunities out there. It is through trade that she can build ever stronger partnerships around the world that not only generate economic value but, importantly, support our values – protecting our natural environment, defending democracy, and helping to transform the lives of people less fortunate around the world for the better.

We have now secured 97 per cent of the trade value that we set out to reach agreements for first, beyond the EU. And there’s more to come. Trade talks – as will now be apparent to all – often go down to the wire.

Laying the foundations for ambitious new trade deals

These agreements provide a strong foundation for our future trading relationships as we look to strengthen further trade ties globally through negotiating new and ambitious free trade agreements. By working together with forward-looking, like-minded nations, we will secure ambitious trade deals that benefit great British businesses, keep consumers in mind, and drive economic growth globally.

Our United Kingdom-Canada continuity trade deal signed this month slays the foundations – and secured commitment – to begin negotiating a bespoke British deal this year.

And our United Kingdom-Mexico deal enshrines our commitment to start negotiating a new trade deal with our Mexican friends too, which will secure even more benefits for British industry, and go further in areas of mutual interest such as data, digital trade, services and intellectual property.

That’s in addition to our ongoing negotiations with United States, Australia and New Zealand.

And our deal with Kenya, delivers long-term certainty, and preferential conditions, for businesses in both countries, benefitting consumers and investors, and supporting economic development. The deal has been constructed in such a way that other countries in East Africa will be able to join it and benefit their own people whenever they are ready.

Many of these deals and negotiations are significant steps towards Britain’s accession to the Trans-Pacific Partnership (CPTPP) too, to which we aim to apply for formal accession in early 2021.

Joining the CPTPP would put Britain at the heart of an increasingly influential trade network of 11 dynamic economies in the Asia-Pacific region that already accounts for 13 per cent of global GDP and would rise to 16 per cent with our accession. This is a trade network that doesn’t tell countries how to govern themselves nor how they can trade with their friends – but it does help remove tariffs on 95 per cent of goods.

All of this is ultimately good news for great British manufacturers, producers and exporters, supporting jobs in every corner of the United Kingdom. But it is not just our businesses that will benefit. British consumers will be able to continue to enjoy cheaper household goods on supermarket shelves from Chilean Wine to Kenyan Tea.

We have secured all this against the odds and facing unprecedented challenges.

The deals we’ve done are just the beginning, but they do set out clearly our ambition as a free trading nation to champion British interests and push for ambitious and forward-thinking trade partnerships. And that’s why I have been getting into the detail with our friends in India and the subcontinent, the Gulf Cooperation Council, and Mercosur.

Our future trading relationships, over the next few years, will be based on strong relationships and will be all about the detail.

Global Britain in the years ahead

Having served as the Conservative Party’s Deputy Chairman – and Vice-Chairman previously, with responsibility for policy – I enjoyed meeting Party members, listening to Parliamentarians, and working with the Cabinet and advisers in devising our manifesto ahead of the General Election, then campaigning on it on the doorsteps of constituencies across the country.

One of its clear promises was to secure free trade deals with countries that cover 80 per cent of our trade within three years – and it is good news that we are well on our way. All the folks at the Department for International Trade have been working flat out to strike the trade deals we have.

But it is clear that, now more than ever, we must also look to new markets, to help diversify our trade routes and supply chains in regions like Latin America, the Middle East, and the Indo-Pacific.

As Britain lifts her eyes for the first time in almost 50 years, our guiding principle over the next few years will remain the same; we will negotiate new trade deals that champion the interests of British businesses and the British people.

Global Britain is here, and is ready to show the world her true potential once again.