LONDON — In a world blighted by tariffs and increasing protectionism, U.K. Prime Minister Keir Starmer is starting to realize that teamwork really is the only way to make his free trade dream a reality.
“I do think that it’s [a] difficult environment, but there are significant opportunities if we’re agile about it, if we understand the world we’re living in, and get ahead of the curve,” Starmer told businesses in Westminster on Thursday as he set out the U.K.’s first Trade Strategy since Brexit.
While underscoring the importance of trade deals with the likes of India and the U.S., Starmer hinted at a more multilateral approach to trade policy.
“I think we should also talk to like-minded countries, because they recognize that the world is changing,” he said. “I’ve been talking to the leaders in Japan, in Singapore, in Australia, New Zealand, Canada, about how we, the U.K., can trade in an easier and better way with them and whether we as a group of countries can trade with other countries in an easier and better way.”
The countries mentioned are all members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an Asia-Pacific trading bloc which the U.K. joined in December.
Asia-Pacific bloc ‘more important than ever’
Starmer’s words were borne out in the government’s new trade strategy, where the U.K. committed to working alongside partners and allies to negotiate and agree an “ambitious agenda for future plurilateral agreements.”
It describes the role of groupings such as CPTPP as “more important than ever in the current global context.”
“We will use CPTPP as a platform to support the wider multilateral and plurilateral system, and to encourage deeper trading relationships between countries and groupings committed to liberal rules-based trade,” the strategy said.
At a recent meeting in Korea, CPTPP members committed to work with the EU and the Association of Southeast Asian Nations — a regional grouping of 10 states in Southeast Asia — to liberalize global trade in light of “significant challenges” facing the international trading environment.
This could include discussions on areas such as tariffs, digital trade, rules of origin, supply chains, customs administration and innovation, the Trade Strategy said, adding that these dialogues could “create a platform for other trade-focused economies to participate, so broadening our network of collaborative partnerships.”
In another sign of the U.K.’s commitment to a multilateral trading system, the U.K. announced it would join the World Trade Organization’s Multi-Party Interim Appeal Arbitration Arrangement (MPIA), an alternative system for resolving WTO disputes.
The U.K. had previously dragged its heels on signing up to the mechanism.
“Joining MPIA sends a clear signal that the U.K. is committed to the principles of free and fair trade and that we will champion progress wherever and whenever necessary,” the strategy said.
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