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

Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

India, US to discuss trade issues after tariff hike

INDIA and the United States will hold trade discussions in New Delhi on Tuesday, officials and Indian media reports said, as the two countries look to resolve a tariff dispute.

India currently faces high US tariffs on most of its exports and has not yet been able to reach a trade deal that would ease the pressure.

Keep ReadingShow less
Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less