The UK is at a defining moment in its history. For the first time in almost half a century, we have the freedom to establish a new independent foreign and trade policy. It’s an exciting chapter, but we could easily fail to seize the opportunities that lie ahead of us.
The UK faced a similar dilemma after the Second World War. With the disintegration of the British Empire, and the rise of the United States and Russia as the new world ‘superpowers’, Britain struggled to charter her own course in the nuclear age.
There was, for a moment, a plan for Britain to become a ‘third force’, a balance between US and Soviet might and the brainchild of the Labour Foreign Minister Ernest Bevin; rather than relying on the US to remain a global power, Britain would entrench its relationship with the Commonwealth and stand independently.
Instead, we eventually settled for third power status as a member of the European Economic Community. But now, having left the European Union, we may be able to set Britain on a different course.
Following the Brexit vote, many had high hopes for a new period of close cooperation with the European Union after years of rancour and bitter disagreements. Indeed, Michael Gove famously called for a new ‘special relationship’ with our European neighbours, as sovereign equals.
While there is hope that this may still come to pass, it is undeniable that relations with Brussels remain strained, not least as a result of the EU’s misguided attempt to trigger Article 16 of the Northern Ireland Protocol, reneging on its commitment to no hard border on the island of Ireland and ongoing disputes over vaccine supplies.
Looking across the Atlantic, there is no certainty that we can rely on a quick trade deal with the United States. In the run-up to and since President Biden’s inauguration it has been clear that US-UK trade is far from the administration’s top priority. While President Trump was notably protectionist in his aims, President Biden has made clear there will be little chance of an agreement if he believes it will jeopardise the Good Friday Agreement. It may be that Britain finds itself at the back of the queue again, with the promise of a quick trade deal with our ‘closest ally’ stalled as we continue to face further setbacks.
However, this does not need to put a dampener on global Britain’s credentials; rather we should take advantage of this moment to challenge the status quo and look beyond traditional alliances to the rest of the world – including to India, the world’s largest democracy and sixth largest economy in the world and with whom we share historic ties.
As Shanker Singham points out in a new research paper ‘Eastern Promise – Assessing the Future of UK-India Trade’ for the Institute of Economic Affairs, the UK has a once in a generation opportunity to establish a closer relationship with India, both in matters of trade and geopolitical strength, and in opposition to the negative impacts of China’s market distortions and security policies.
When the Prime Minister meets Narendra Modi virtually next week, there are ambitions to lay the road for a new special relationship. If such talks pay off, a UK-India trade deal with co-operation on defence would be the ‘jewel in the crown’ for post-Brexit Britain.
An FTA would bring India into the fold of an alliance of nations in the trade of goods and services. The UK could lower tariffs on Indian agriculture produce, benefiting Indian farmers and helping to facilitate growth in the Indian tech sector. Simultaneously, British consumers could benefit from cheaper consumer goods, more tech services and a wealth of talent enriching the UK labour market.
A UK-India agreement would also counter Chinese chauvinism in the Indo-Pacific region, reinforcing our role on the world stage as the defender of freedom and free trade. Although the paper highlights there is much progress to be made on property rights and attitudes towards free trade in India, next week’s meetings could signal the first big step for global Britain in the region.
In her role as International Trade Secretary, Liz Truss has shown unrivalled enthusiasm for forging new trade deals across the globe. The world is watching as Britain carves out its new position on the global stage; we should not be afraid to look beyond Europe and the United States, championing freedom in the face of new adversaries.
