UK Trade Agreements: Why British Commonwealth Market is Important

• July 31, 2017
• By Pete Nisbet
• 0

UK trade agreements are currently under discussion – or so we assume. There is the talk of a trade agreement with the US and other countries. However, the British Commonwealth market may also be an important source of trade for Britain post-Brexit. The UK 1975 referendum related to joining the Common Market, as it was known then. At that time, Britain had good reciprocal trade arrangements with Commonwealth nations such as Australia, Canada and New Zealand – more on this later.

The so-called Common Market allowed trade between member countries without tariffs and customs barriers. It gradually developed into a political union, and then a legal union. This European Union gave the European Parliament the right to overrule existing UK laws. The UK population and Parliament objected to this.

 Common Market Became a Social and Political Union

The Common Market also became a social union where all EU citizens could move freely without the need for a passport. However, the UK withdrew from this ‘Schengen Agreement’. It believed that as an island state it could more easily assure border security using its own border controls.

The concept of a single ‘European Nation’ did not rest well with the British population. The UK dislikes many of the principles involved in making the EU a ‘family of nations’. It has historical reasons for not feeling part of that ‘family’. Trade agreement yes: political and social union, no!

 UK Trade Agreements and British Commonwealth Market

The UK is already well advanced in making trade agreements outside of the EU economy. They are with the US, British Commonwealth countries and China and other Asian countries. The UK was doing well with Commonwealth trade with Australia, Canada, India, New Zealand many of the other 47 Commonwealth countries around the world. No doubt the UK will survive without the EU, but is the reverse true?

With Brexit looming, Britain needs some trade agreements in the bag when negotiations start. The UK will be making trade deals worldwide for the day they are no longer part of the EU. The sheer size of the British Commonwealth market seems a good bet. However, there are many other options open to the UK manufacturing and service industries. UK trade agreements will not be difficult for Britain to find. It is an exporting and importing nation and many depend on it for trade.