By Alistair Smout LONDON (Reuters) -Britain said it would toughen up its trade defences to better protect industries amid a turbulent global outlook of trade wars and U.S. tariffs that has shaped its new trade strategy published on Thursday. The government said that “resurgent protectionism” meant it needed to rethink its approach and “take the […]
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Britain vows to toughen its trade defences under new strategy
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By Alistair Smout
LONDON (Reuters) -Britain said it would toughen up its trade defences to better protect industries amid a turbulent global outlook of trade wars and U.S. tariffs that has shaped its new trade strategy published on Thursday.
The government said that “resurgent protectionism” meant it needed to rethink its approach and “take the earliest opportunity to overhaul Britain’s trade remedies system to make it more accessible, assertive and agile.”
“The UK is an open trading nation but we must reconcile this with a new geopolitical reality,” Business and Trade Secretary Jonathan Reynolds said.
“Our trade strategy will sharpen our trade defence so we can ensure British businesses are protected from harm.”
The government will adjust the Trade Remedies Authority’s policy guidance and operating framework so it can be more assertive in tackling imports from countries with “unfair market distortions”.
UK Steel has said that the TRA’s current approach, under which it proposed to cap how much of certain kinds of steel could be imported, needed to be more robust, and welcomed the trade strategy as a “critical turning point”.
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The trade strategy is Britain’s first since it has had an independent trade policy after leaving the European Union under the Conservatives, who hailed the opportunities of Brexit as it pursued several free trade agreements.
While the Labour government, which came to power a year ago, concluded free trade talks with India and hopes to clinch another deal with the Gulf Cooperation Council soon, it said the new strategy would focus on quicker and more practical deals than the previous government did.
It is already set to partially implement a deal to remove some of U.S. President Donald Trump’s tariffs, and has hailed recent deals to smooth trade with the European Union.
A new fund, named after 19th Century free trade economist David Ricardo, will be established to help British regulators tackle trade barriers abroad.
The UK Export Finance (UKEF) export credit agency will also be expanded.
Britain will also join the MPIA temporary arbitration arrangement for resolving World Trade Organization disputes.
The trade strategy also seeks to promote environmental goals, labour rights and human rights. But the Trade Justice Movement advocacy group said those ambitions would be “severely tested” in negotiations with the GCC.
“Without clear conditions and safeguards that uphold rights… these promises risk remaining purely rhetorical,” said Trade Justice Movement director Tom Wills.
(Reporting by Alistair Smout; Editing by Alex Richardson)