"Head-in-the-sand strategy" on trade is costing Britain, says Thornberry

Monday, 28 June 2021 12:23

Emily Thornberry MP, Labour’s Shadow International Trade Secretary, responding to the new Institute of Directors survey on the impact of Brexit on UK business reported in the Financial Times, said: “This survey exposes the fundamental problem with the government’s current trade strategy. They say we can ignore the losses facing British firms doing business in Europe because new trade deals with the rest of the world are filling the void, but that is clearly nonsense....Request free trial

Emily Thornberry MP, Labour’s Shadow International Trade Secretary, responding to the new Institute of Directors survey on the impact of Brexit on UK business reported in the Financial Times, said:

“This survey exposes the fundamental problem with the government’s current trade strategy. They say we can ignore the losses facing British firms doing business in Europe because new trade deals with the rest of the world are filling the void, but that is clearly nonsense.

“Last week, they launched negotiations to join the Trans-Pacific Partnership, which as things stand, according to their own figures, will add just £400 million - or 0.017 per cent - to GDP, over a 15-year period. That is a tiny fraction of the trade being lost with Europe as a result of the red tape, customs checks, shipping costs and labour shortages highlighted by this survey.

“But instead of trying to work with British business and our European counterparts to fix those problems, the government is ignoring them, and saying that is not their current priority when it comes to trade. It is a head-in-the-sand strategy, for which British businesses and workers are paying the price.”

Ends

Notes for Editors:

The Institute of Directors survey of 651 companies who trade with the EU is reported in today's Financial Times, stating that a third of them have reported a decline or loss of business since the new rules governing UK-EU trade came into effect on January 1st. https://www.ft.com/content/eadc7c23-2125-4381-93ae-a54104e5ccc7

The government last week formally opened negotiations to join the Comprehensive Progressive Trans-Pacific Partnership (CPTPP). In her accompanying statement, Liz Truss said: "This part of the world is where Britain’s greatest opportunities lie. We left the EU with the promise of deepening links with...markets beyond Europe, and joining the [CPTPP] is an important part of that vision." - https://www.gov.uk/government/news/britain-launches-negotiations-with-9-trillion-pacific-free-trade-area

Page 60 of the Department for International Trade’s scoping paper on CPTPP accession spells out the forecast 0.08% long-term increase in GDP (£1.8bn) that will result from UK accession. Page 65 of the document outlines an alternative scenario if Malaysia maintains its current refusal to ratify the agreement, which adjusts the increase in GDP down to £400mn (or 0.017% in percentage terms).