UK–Commonwealth Trading Relationship

Baroness Prashar Excerpts

Thursday 8th July 2021 Lords Chamber

[Baroness Prashar (CB) [V]]

My Lords, I thank the noble Lord, Lord Howell, for introducing this debate. I agree with him about the relevance of the modern Commonwealth, its potential and the importance of its non-governmental networks.

The benefits of trading with and within the Commonwealth are well documented, but this so-called Commonwealth advantage can be further harnessed by new technologies, especially digitisation. In recent years we have seen an increase in deliverable digital exports in services in upper and middle-income Commonwealth countries, but they have decreased in small and low-income Commonwealth states. The digital divide, digital penetration and skills in information management are real issues that need to be addressed in the Commonwealth if we are to realise the ambition of reaching the $2 trillion target by 2030, as agreed at CHOGM in 2018. Can the Minister tell the House what action the UK is taking to address this digital divide? Furthermore, what specific steps have been taken by the UK to improve the regulatory environment and supply chains?

In October 2019, the International Trade Secretary, Liz Truss, when addressing the meeting of Commonwealth Trade Ministers said that the Commonwealth was one of the UK’s largest trading partners, worth over £100 billion in March 2019. Although the value of UK exports to the Commonwealth increased by 4% between 2018 and 2019, and the value of imports grew by 15%, the UK’s trade is with a very small number of Commonwealth countries, including Australia, Canada and New Zealand. The integrated review talked about seeking bespoke trade agreements with those countries, as well as India, and the UK has signed continuity agreements with South Africa, Mozambique and others mentioned by the noble Lord, Lord Howell. That progress is commendable, but does the Minister agree that the UK has a responsibility to the whole of the Commonwealth, particularly low-income states, and needs to ensure that disparities in areas such as digital penetration within the Commonwealth are mitigated? Again, in 2019, the International Trade Secretary stated that,

“the 53 member states of the Commonwealth have the unique ability to be able to lead the defence of free trade…showing the world a route to prosperity”.

Should we, therefore, not be working with the Commonwealth as a whole?