UK must brace for trade shifts: BCC

The British Chambers of Commerce (BCC) has urged the UK Government to prepare for a turbulent era in international trade, in its latest Global Britain report.

The report outlines 26 recommendations aimed at driving export growth, fostering trade alliances, attracting investment, and enhancing economic diplomacy. It emphasises key actions such as revitalising economic diplomacy to secure better trade outcomes, improving access to trade finance through digitalisation, reforming domestic regulations to encourage private sector investment, strengthening export support to maximise the benefits of existing trade deals, and building global alliances to improve supply chain security.

As part of the BCC's ‘Future of the Economy’ project, the report draws insights from businesses, academia, Chambers, and think tanks. It recognises the UK’s strengths as the sixth-largest economy in the world, the second-largest exporter of services, and the second-largest inward investment destination in Europe. However, the report also highlights the challenges posed by the lingering effects of Brexit and the slow recovery from the pandemic.

With a new US President set to take office in January 2025, ushering in a likely wave of tariffs and protectionism, the report warns of potential trade conflicts. It underscores the UK’s unique position outside the EU, offering the flexibility to respond independently and act decisively in forming global alliances to influence the broader trade landscape.

“It is currently anyone’s guess as to what the world’s trading relationships will look like in the New Year, but everyone recognises that a new era of tariffs is likely on the way. But this is not a zero-sum game, where you are either on one side or the other. The UK is no longer part of a large trade bloc, which gives us more flexibility in how we respond. However, we must also make sure we are in the best shape possible to do that. We need well supported Trade Commissioners and Envoys who are at the top of their game, and we need a finely honed strategy of economic diplomacy for them to use,” said Martha Lane Fox, president of the British Chambers of Commerce and Chair of the Business Council

“The UK has a long history as a convener and consensus builder in trade alliances. And while the months ahead might prove difficult, we must not lose sight of the prize that keeping the global trade system as open as possible will bring.? The maths on this is really very simple. If the UK exports more than it imports, then trade contributes to economic growth, productivity rises, and wages and investment are pushed up – creating a virtuous circle. But the additional costs for employers from the Autumn Budget mean many are tightening their belts. If we are serious about growing our economy, then the Government must look closely at the level of export support it offers to business,” Lane Fox added.

Fibre2Fashion News Desk (HU)