A long-term view of the United Kingdom’s economic relations with the Commonwealth

ABSTRACT

This article analyses economic relations between the United Kingdom and other countries of the Commonwealth in the long term. While looking at past relations between these countries, it also provides some guidance on the prospects of future engagement consequent upon the UK exiting the European Union. The article concludes that although Commonwealth trade is unlikely to replace European trade, such trade will in all likelihood grow in the future, which could help to enhance the UK’s links with other countries outside Europe.

KEYWORDS:

• Commonwealth
• United Kingdom
• merchandise goods
• services
• investment
• Brexit

Notes

1. One exception is probably the export of coke and coal to the United Kingdom which is unlikely to grow substantially as the country carries out climate change policies that reduce the country’s electricity sector’s reliance in fossil fuels.

2. Australia and New Zealand can be included together as they have a Closer Economic Relations Treaty. It is why the House of Commons International Trade Committee in undertaking an inquiry into trade and the Commonwealth (established in November 2017) is looking at the case of the two countries together.