New MP James Cleverley quizzes Chancellor on Commonwealth exports

Following George Osborne's statement on Greece yesterday afternoon, James Cleverley MP took the opportunity to press the Chancellor on ensuring the Commonwealth is at the heart of the UK's plan for exports, growth, and diversification away from an over-reliance on the European Union.

He asked:

"I cannot see an outcome to the current Greek situation that will not have a detrimental effect on the British economy. Will he therefore assure this House that as part of the long-term economic plan he will include a commitment to expand and extend our trading relationships globally, particularly to fast-growth Commonwealth economies, to help spread our risk?"

Encouragingly, the Chancellor replied:

"My hon. Friend makes a very important point. Britain is overly dependent on its exports to the rest of the EU. About 50% of our exports go to the EU. We have been working very hard to expand our exports to fast-growing economies in Asia, Latin America and Africa. Although, in general, UK export performance has been quite disappointing in recent years, that is principally because of the weakness of the European economy. Our export performance to many of these emerging economies has been very much better, and we want to build on that—particularly, of course, our links with the Commonwealth countries."

James is a new MP representing the constituency of Braintree. It's great to see one of the new intake standing up for the Commonwealth and making sure Britain doesn't neglect this vital network!

UK and Singapore working for deeper financial and economic cooperation

It has been announced that "the UK and Singapore have agreed to set up a UK-Singapore Financial Dialogue, which will focus on deepening financial and economic cooperation between the two countries."

Singapore is already the UK's largest trading partner in South-East Asia and it's great to see efforts are being made to keep building this relationship. Financial services make up around 10% of the GDPs of both countries and they are ranked as the first and fourth leading Global Financial Centres.

Hopefully this new forum will lead to even stronger ties between the two countries.

Chancellor's Speech in Hong Kong

George Osborne MP, the UK Chancellor, addressed the British Chambers of Commerce in Hong Kong yesterday. His discussion of the UK’s economic recovery were widely reported but his international comments are well worth reading too. He pointed out that “Hong Kong and the UK are now doing more business together than ever before.”

In a key passage he says:

Hong Kong and Britain have always had a special bilateral relationship.

That’s about much more than our historic and legal ties.

It’s about our shared values.

It’s about the influence that your culture has had on British life – and that our culture has had here.

It’s based on the thousands of Hong Kongers who study and work in Britain and the quarter of a million British citizens who choose to work here in Hong Kong.

And of course it is also about our inextricably intertwined economies.

So whereas others could make the mistake of seeing Hong Kong as nothing more than a jumping point for trade with mainland China, we in Britain know just how important Hong Kong is as a destination its own right.

He also goes on to praise the economic strength and resilience seen in Australia, Canada and Malaysia.

In one passage he describes the UK and Hong Kong as “two of the most open, free-trading, financially connected places on earth.” While relatively speaking he is correct, it is worth pointing out that the two are not identical in this respect. Indeed on every major indicator and index Hong Kong  surpasses the UK in this regard as can be seen in the below graphic which uses data from the World Bank, the World Economic Forum, the International Chamber of Commerce and the Heritage Foundation:

We hope that the Chancellor will take note and encourage the UK and the rest of the Commonwealth to follow Hong Kong’s example in order to maximise the mutual benefits and prosperity that international trade can bring.

The full speech is available here.