Prime Minister backs Commonwealth trade

It looks like David Cameron may have been listening to us as he has used an article in today's Daily Mail to explicitly call for more trade with the Commonwealth.

In the piece he writes:

"With some of our neighbours’ economies stagnating and markets further afield roaring ahead, we need to change our approach. We need to go to the ends of the earth to sell our wares – to recapture the outward-looking, enterprising spirit that made us great. 

I want us to be nothing less than the modern world’s most open, trade-minded nation. To do that, we must tap into markets outside Europe; to look to the Commonwealth and beyond. There’s plenty of potential."

Needless to say, we couldn't agree more!

As our Director argued on the CWF blog yesterday, the Commonwealth is ideally suited to be Britain's gateway to the World.

However the Prime Minister's words do need to be backed up with action.

For example, the recent completion of the EU-Singapore Free Trade Agreement (EUSFTA) is welcome but the process has been consistently delayed and implementation is now unlikely until 2016. This is simply not good enough as the below chart shows.

As we argued in our award winning Brexit prize entry, EU trade deals are taking far too long and either speeding them up or repatriating the ability for Britain to sign our own deals needs to be a top priority.

We welcome the Prime Minister arguing for greater Commonwealth trade but he needs to convince Brussels to do the same.

UK Foreign Secretary delivers barnstorming pro-Commonwealth speech in Singapore

The UK's Foreign Secretary has delivered a fantastic speech in Singapore highlighting our close links, promoting the Commonwealth, and making the uncompromising case for more free trade.

Too often, even when the links that bind member states together are recognised, they are seen only in the bilateral sense, and not as part of the incredible network of networks that is the Commonwealth. It's great to see the Foreign Secretary explicitly recognising this and following on with his predecessor's pledge to put the 'C' back in FCO.

You can read the full speech here but we've collected some of the highlights below.

On our shared history:

"We have been part of the Singapore story for two centuries. Along with Australia and New Zealand, two of the stops on my current trip, our history is so closely interwoven that we have ties which the oceans cannot loosen."

“Our historical, cultural and commercial links mean the UK already enjoys thriving ties with the Asia Pacific region.”

On the Commonwealth diaspora in the UK:

Britain boasts a leading financial and creative hub, one of the world’s few truly global cities and is home to many vibrant Asian communities: 37,000 UK residents were born here in Singapore; 175,000 in Australia and New Zealand combined;

On the rule of law:

"In the UK, in the Commonwealth, and beyond, it has had a profound impact in the development of the rule of law, strong institutions and accountable government on which our societies have built enduring prosperity and stability. Nowhere is this truer than here in Singapore where there is a close correlation between the rule of law and the prosperity generated by global investment."

“These shared traditions bind the wider region, and beyond. Indeed, judges from the UK, Australia and New Zealand sit on the Court of Final Appeal in Hong Kong, where the rule of law has been a fundamental component of continuing economic success.”

On our shared values and language:

"Geographical distance has been no barrier to the development of shared values between the UK and countries in the region. With three of the countries that I am visiting – Singapore, Australia and New Zealand – we not only share a common language but common law traditions and Commonwealth membership as well. The same applies, of course, to India – that giant of democracy and integral part of the rising Asia story."

"We share with you in Singapore the worldwide language of business, science and engineering."

"It is a convenient truth that human rights, prosperity and security are mutually reinforcing. For example, the free flow of ideas and innovation - the life-blood of economic growth coursing through the veins of the free Asian nations, is a driver of economic growth, and a key differentiator in favour of democracy."

On free trade:

"Free trade is in Britain’s DNA and that is the code that is unlocking prosperity across the Asia Pacific region. So it is in all our interests to maintain the momentum behind trade and investment liberalisation in the region."

"[It is] bringing new levels of prosperity to the people of this continent; new opportunities for global trade; and higher standards of living for all."

On defence

"Britain is also a party, alongside Singapore, Malaysia, Australia and New Zealand to the Five Powers Defence Arrangements – still the only formal multilateral defence arrangements in South East Asia."

“That means we are ready and able to mobilise in support of Asia Pacific allies friends and partners… As we did in response to Typhoon Haiyan, facilitated by the Royal Naval presence here in Singapore and again when the world came together in search of missing Malaysian airliner MH370.”

On trade and investment between the UK and Singapore:

“the fundamentals have never been better for flourishing trade and investment relationships between the UK and the Asia Pacific region. The statistics tell the story: in Singapore alone there are over 1,000 British companies.

On the UK as a Commonwealth gateway to Europe:

"Nearly three quarters of Singapore’s investment into the EU goes to the UK."

“I hope the EU and Singapore will match this by implementing the FTA between them in the very near future. It should be the precursor to... further FTAs with Asia Pacific economies, including Australia and New Zealand.”

"Britain’s economy is on the move too. Ambassador, you said in your introductory remarks that Britain was the world’s sixth largest economy and I don’t often engage in Schadenfreude with my French neighbours, but we are now the world’s fifth largest economy!"

“few western countries can claim to know Asia as well as Britain.”

And finally, on the future of our relationships:

“the UK Government has not and will not let itself be distracted from the importance of building strategic relationships for Britain across the Asia Pacific region which are fit for the 21st Century.”

“The threats we face together as challenges to our common prosperity, to the values that bind us, and to civilisation itself can only be overcome through the kinds of partnership the UK is already developing across this region”

 “The UK and the countries of the Asia Pacific region are already working as partners for a safer and more prosperous world. But I firmly believe the best is yet to come; that the most important chapter of our shared history is the one we are about to write together.”

David Nuttall MP raises Commonwealth Immigration in Parliament

David Nuttall, the Conservative MP for Bury North, has raised the issue of Commonwealth Immigration in Parliament. Speaking during Home Office questions, he said:

"Our membership of the European Union brings with it a right to free movement into this country for people from other EU countries, and that brings with it a feeling that our friends in Commonwealth countries are being completely discriminated against."

He raises a very important issue. No matter at what level you think net immigration to the UK should be, it is clear that Commonwealth citizens are currently getting a raw deal.

For example, immigration from South Africa has fallen from 28,000 in 2002 to only 5,000 in 2012. EU immigration has more than doubled to 182,000 in the same period.

In other areas the collapse is even clearer. Immigration from the Indian sub-continent fell by over 50,000 in a single year 2011-12 dropping to just 69,000. This is in spite of the fact that the region is home to more than three times the population of the EU.

All of this and more will be covered in our upcoming report "How to Solve a Problem like a Visa - the unhappy state of Commonwealth migration in the UK." It will highlight how Commonwealth immigration has dropped dramatically in recent years and will propose six key measures to remedy this situation.

The report will be launched on 3rd November. There will be an event in Parliament on the morning of 3rd November to launch the report. More details are available on the Facebook event (don't forget to like our page too) and you can reserve your place by emailing events@commonwealth-exchange.org.

Commonwealth vs EU: A false dichotomy?

There has been a lot of media attention on Lord Ashcroft's latest research Europe on Trial. It is an extensive examination of the UK population's views on Europe. However one of the overlooked results was the relative popularity of the Commonwealth.

When asked "how  positive  or  negative  do  you  feel  towards  each  of  the  following?", the Commonwealth was the highest scoring political/international organisation ahead of local councils, the UK Parliament, the ECHR, the EU, and the European Parliament.

Several countries were also included in the question and again the Commonwealth & Anglosphere does well with all 4 nations polled (Canada, the USA, India and South Africa) receiving higher average scores than any European institution and Canada receiving the highest score of all countries and institutions:

While this is obviously positive and welcome news, especially in light of some recent negative press for the Commonwealth and several of its member states, caution is required.

There is a danger with this that, for Britain, the Commonwealth will come to be seen only as an alternative to the EU. This not only undervalues this incredible network that we have inherited, it also could lead to it being ignored for as long as Britain is in the EU. This would be a costly error as, in or out, we should be pushing for more and freer trade with other Commonwealth countries.

It is worth remembering that the EU has signed or is working on deals with Canada, Signapore, India, South Africa and various other key Commonwealth countries. In addition, the UK is not the only Commonwealth country in the single market with Malta and Cyprus also being members of both organisations.

These negotiations have often not proceeded as rapidly or freely as we would like but, for as long as the UK remains a part of the EU, they are the only mechanism for us to expand trade with our Commonwealth partners around the world.*

By only viewing the Commonwealth as an alternative to the EU, and therefore to be ignored until a potential future Brexit, there is a danger of trade negotiations with Commonwealth countries slowing or being abandoned just when Britain should be applying ever more pressure for freer trade through the EU and any other channel it has available to it.

CX does not take a firm position on whether or not the UK should be in the EU but the Commonwealth MUST be a priority in either case.

*Worryingly, the Ashcroft poll also found that only 11% view the inability to negotiate trade deals with non-EU countries as one of the "most important disadvantages of EU membership." This issue needs to be highlighted and awareness of it increased as it should be one of the first things raised in future negotiations and could be one of the deciding factors in deciding whether or not the UK should remain a member.

Commonwealth Week Highlights

As Commonwealth week draws to a close, here are some of our highlights:

1) We celebrated Commonwealth Day by publishing a Buzzfeed post promoting some of the things we love about the Commonwealth. Read our 10 reasons the Commonwealth is Awesome here.

2) Ralph Buckle, our Director and Co-founder, also wrote a piece for ConservativeHome (one of the UK's leading political blogs). He argued that, as the Commonwealth approaches 65, it's time for it to be refreshed not retired. Read it here.

3)Tim Hewish, our Executive Director and Co-founder, attended the Commonwealth Day Reception 2014 at Marlborough House. At the event he had the opportunity to explain CX's aims and activities to Her Majesty The Queen. He also had a productive discussion with the Commonwealth Secretary General, His Excellency Mr Kamalesh Sharma.

Photos by Richard Lewis & Stefan Kneba

Photos by Richard Lewis & Stefan Kneba

4) Her Majesty The Queen released her Commonwealth message. She said that "Affinities of history and inheritance from the past are strong, yet we are bound together by a sense that the Commonwealth is a powerful influence of good for the future. People of all ages from different cultures are weaving an ever-growing network of links which connect us in our diversity and our common purpose." The full message is here.

5) The UK's Commonwealth Minister Hugo Swire wrote a piece for the Huffington Post on his vision for the Commonwealth. You can read it here.

6) On Thursday CX also attended a Parliamentary meeting with the Indian Cabinet Minister for External Affairs, Mr Salman Khurshid. He discussed opening up the market for Indian & UK lawyers to work together referencing the benefits of similar legal systems. Our Advisory Board member Lord Flight quizzed him on the commercial environment and trade. The Minister concluded by calling the partnership "The Unique Relationship" to mirror the UK and the USA's "Special Relationship."

7) MP's discussed the Commonwealth in a Westminster Hall debate. You can read our highlights here and the full text of the debate here. Our Advisory Board Member Andrew Rosindell MP's comments on the absence of the Commonwealth flags from Parliament Square this year are particularly worth reading.

8) In spite of the lack of flags flying in Parliament Square, they were flying on Horse Guards Road which runs alongside the Treasury, the Foreign and Commonwealth Office (FCO), Downing Street and the Ministry of Defence. We arranged for a photographer to take a few shots. Click through on the image below:

9) Over 500 Commonwealth Flags were also flown all over the UK thanks to the Fly a Flag for the Commonwealth initiative.

10) On Friday we had a productive meeting with the Commonwealth Unit at the FCO to discuss our programme of activity and how we can collaborate to make sure the Commonwealth thrives in the 21st Century.