I was intrigued to read in a number of papers on Tuesday,
that the EU’s new trade negotiations with Australia and New
Zealand are apparently a set-back for the UK. Far from it,
we welcomed them.
Australia and New Zealand are important trading partners
for Britain, with trade worth £16 billion a year. Its no
coincidence that 2 of the earliest announcements the new
Department for International Trade made in 2016 were to
establish new trade dialogues with both countries.
So trade discussions with both countries are already well
underway; our trade dialogues with Australia and New
Zealand met as recently as last month when UK
officials traveled to Wellington and Canberra. It is
correct to say that we cannot formally negotiate any future
trade agreements until we have left the EU, but as we have
agreed with the EU itself; we can begin formal negotiations
once we leave next year.
Our trade dialogues will ensure they start from a strong
position, having already laid the groundwork and built a
shared understanding of each other’s trade policy. They
will also build on our historic links and mutual investment
in each other’s economies, worth £53 billion in 2016.
But while we have ambitious plans for our own trade with
Australia and New Zealand, that doesn’t mean we don’t
support the EU’s ambitions.
In fact, I was at the EU trade ministers meeting in
Brussels this week which agreed to start EU negotiations
with both countries. I welcomed them, and the UK pledged to
involve itself constructively in them, reigniting our
unique bilateral relationships.
Just as the UK was one of the leading voices in the EU
supporting new trade agreements with countries like Canada,
so we remain the EU’s biggest free trade advocate, before
and after we leave.
Trade is not a zero-sum game. The EU securing new trade
agreements with Australia and New Zealand is good news for
the UK, as it increases the free flow of trade around the
world, which supports consumers and businesses in all
countries.
EU Trade Commissioner Cecilia Malmstrom welcomed the EU
negotiations “between likeminded partners” which “sends a
strong signal at a time where many are taking the easy road
of protectionism.”
I completely agree. As International Trade Secretary
, and I, have made clear on
our meetings with governments around the world, and at the
World Trade Organisation itself, the UK will lead the
global call for free trade. That means us also working with
like-minded partners including the EU, as well as Australia
and New Zealand.
Both countries recognise the huge value that free trade
brings to prosperity and growth. New Zealand is the only
country to successfully conclude free trade agreements with
China, Hong Kong and Taiwan. An impressive record, which is
why we hired their top trade official, Crawford Falconer,
as our own Chief Trade Negotiations Adviser.
I look forward to a day when the EU, UK, Australia and New
Zealand all enjoy the benefits of open and free trade with
one another.
As a member state, we support the EU commencing its
negotiations. But just like in cricket, it isn’t necessary
to be the team that bats first.
