Skip to content
Search

Latest Stories

Britain hoping for Brexit boost from Commonwealth summit

Britain is hoping this week's Commonwealth summit will prise open greater trade with its historic network as it prepares to quit the European single market under Brexit.

The UK is pouncing on the organisation's analysis showing the advantages of trade between Commonwealth countries due to its common language and legal systems.


But some quarters are warning that Britain's trade with Commonwealth nations lags so far behind that with its European Union neighbours that a straight replacement is impossible.

The 53 member states are gathering for their biennial Commonwealth Heads of Government Meeting (CHOGM), being hosted this year in London.

Born out of the former British empire, the voluntary organisation focuses on development and democracy, but is turning its attention to boosting trade.

Intra-Commonwealth trade is expected to increase by at least 17 percent to around $700 billion by 2020, according to the 2018 Commonwealth Trade Review.

"Brexit will have wide-ranging economic implications for the UK, the EU and many Commonwealth members," the report says.

"However, there may also be important opportunities for the UK in the post-Brexit period to... negotiate new bilateral trade agreements with interested Commonwealth members."

- Hard sell -

Britain is going for the hard sell during CHOGM.

The summit proper is on Thursday (19) and Friday (20) but kicks off today with three days of forums and events that lay the groundwork.

Britain's International Trade Secretary Liam Fox on Monday chairs a session on catalysing growth and championing free and fairer trade.

Meanwhile Britain is hosting a reception aimed at showcasing British exports, from food and drink to the English Premier League football trophy.

"You've got some of the fastest-growing economies in the world. It will be a great opportunity for us to rebuild old friendships," British Foreign Secretary Boris Johnson told BBC television.

"A lot of that is going to be on the table at the Commonwealth summit," he said Sunday.

When Britain joined the European Economic Community in 1973, it sidelined historic trading links with its former empire, causing much hurt in some countries.

Britain is due to leave the EU in March 2019. A transition period runs until the end of 2020 after which the UK will be out of the European single market and customs union.

Britain is gearing up to strike its own trade deals outside the single market and is looking to its former global network.

The Economist magazine said Saturday that the Commonwealth "won't save Britain from Brexit", calling the idea that Commonwealth trade could replace EU trade "an amiable delusion".

In terms of goods and services trade in 2016, Britain does more business with 15 countries -- nine of them in the EU -- before its biggest Commonwealth trade partners Canada and India.

Overall, the EU accounts for nearly half of Britain's trade; the Commonwealth accounts for a tenth.

Philip Murphy, director of the Institute of Commonwealth Studies, wrote in The Guardian newspaper: "Sorry, Brexiters. Banking on the Commonwealth is a joke.

"The notion that it can pick up the slack when the UK leaves the EU is nonsense."

- Clean oceans focus -

Given its highly diverse membership, if agreements can be struck within the Commonwealth, they can likely achieve wider support.

At the last Commonwealth summit in Malta in November 2015, leaders struck a deal on climate change that paved the way for the Paris agreement days afterwards.

The theme this time is "Towards a Common Future". The group is hoping to agree an ocean governance charter, a connectivity agenda for trade and investment, and a declaration on tackling cyber crime.

"CHOGM 2018 promises to deliver transformational change for the people of the Commonwealth," said the organisation's Secretary-General Patricia Scotland.

"Immediate impact combined with wider influence make the Commonwealth an unparallelled force for building understanding and cooperation towards realising global goals for social and political progress, inclusive prosperity, and sustainable development."

The summit comes immediately after the 2018 quadrennial Commonwealth Games on Australia's Gold Coast.

Britain last hosted CHOGM in 1997 and is laying on the style.

Queen Elizabeth II, the Head of the Commonwealth, is hosting a dinner for the leaders at Buckingham Palace in London. On Friday they gather in private at Windsor Castle, west of the city.

More For You

marks & spencer

M&S has confirmed that its physical stores remain open and operational

Getty

Marks & Spencer suspends online shopping after cyber attack hits systems

Marks & Spencer (M&S) has paused all online orders following a significant cyber attack that has left the company working to restore its systems. The retailer confirmed the cyber incident earlier this week, after customers began experiencing issues with online services last weekend.

While some systems have been brought back online, others remain offline, forcing M&S to stop taking orders through its website and apps. This includes both food deliveries and clothing purchases. The company issued an apology for the inconvenience, acknowledging the disruption and stating that its team, supported by cyber experts, is working tirelessly to resolve the situation.

Keep ReadingShow less
Pakistan airspace curbs push up costs for Indian airlines

FILE PHOTO: Passengers stand in a queue before entering the Chhatrapati Shivaji Maharaj International Airport in Mumbai. (Photo by SUJIT JAISWAL/AFP via Getty Images)

Pakistan airspace curbs push up costs for Indian airlines

TOP Indian airlines Air India and IndiGo are bracing for higher fuel costs and longer journey times as they reroute international flights after Pakistan shut its airspace to them amid escalating tensions over a deadly militant attack in Kashmir.

India has said there were Pakistani elements in Tuesday's (22) attack in which gunmen shot and killed 26 men in a meadow in the Pahalgam area of Indian Kashmir. Pakistan has denied any involvement.

Keep ReadingShow less
Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less
Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

The IT service firm said its revenue would either stay flat or grow by up to three per cent

Getty Images

Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

INDIAN tech giant Infosys forecast muted annual revenue growth last Thursday (17) in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to three per cent in the fiscal year through March 2026 on a constant currency basis. The sales forecast was lower than the 4.2 per cent constantcurrency revenue growth Infosys recorded in the previous financial year.

Keep ReadingShow less