Australia and New Zealand first in series of inquiries into future trade relationship with Commonwealth nations

In its first report, UK Trade Options Post 2019, the Committee acknowledged that Commonwealth countries presented “a range of potential trade options—and challenges—for the UK”.  On the one hand, Commonwealth countries share a common language, history and legal traditions with the UK and have established trading relationships in the UK.  In 2014, the UK exported £40.7 billion worth of goods and services to the top 10 Commonwealth markets (8% of total UK trade).  

At the same time, the Committee noted that improving UK trade with these countries may require a multi-faceted approach including FTAs, unilateral preferential arrangements with developing countries and increasing exports. To reflect this, the new inquiries will look at what future trade relations with key developed and emerging markets would look like. In addition, the inquiries will investigate potential mechanisms for improving trade with, and the development of, least developed and developing countries after Brexit. 

Launching the inquiry, Committee Chair Angus MacNeil commented: 

“When he gave evidence to our Committee Liam Fox told us that Australia and New Zealand were top priorities for a trade deal. It is clear that he sees these two nations as quick wins as he sets about creating the UK’s new trading relationship with the rest of the world. While the UK has much in common with Australia and New Zealand, trade negotiations are a two-way street. This inquiry will look at the UK’s priorities for developing new markets in Australia and New Zealand, and the areas where we risk losing out. It will also examine how a trade deal could help expand UK trade in the wider Asia-Pacific region and whether it could be the spring board for deals with other nations in the future.”