Tuesday, December 24, 2024

Historic visit by UK Prime Minister paves way for closer economic ties for the Commonwealth

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  • Prime Minister to make the case that the Commonwealth has a once in a generation chance to be a driving force for opportunity and growth during visit to Samoa 

  • New UK Trade Centre of Expertise set to bolster economic ties across the grouping and unlock markets for UK businesses  

  • Keir Starmer makes history as first ever sitting UK Prime Minister to visit a Pacific Island country

The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.  

It comes as the government uses its foreign policy agenda to deliver for people at home, working with partners across the globe on issues such as climate change, growth and energy security. 

Keir Starmer will arrive in Samoa for the Commonwealth Heads of Government Meeting today [Thursday 24 October], joining 55 other Commonwealth delegations to discuss the shared challenges and opportunities faced by its members.  

In doing so, he will make history as the first UK Prime Minister to ever visit a Pacific Island country.   

The Prime Minister will use the trip to make the case that Commonwealth countries, no matter where they are in the world, need resilient and thriving economies to face the global challenges of the day.  

And he will tell delegates that he believes the Commonwealth offers a unique opportunity to be able to build those economies, combining major traditional markets with rapidly growing economies and resilient, innovative communities.  

By 2027, the Commonwealth is expected be home to six of the world’s ten fastest-growing economies – Guyana, Rwanda, Bangladesh, Uganda, India and Mozambique – and have a combined GDP exceeding $19.5 trillion, while more than 60% of the grouping’s 2.5 billion population will be under 30. 

The Commonwealth, which includes some of the UK’s biggest trading partners such as India, Canada, Australia, Singapore and South Africa, already accounts for 9% of total UK trade, worth £164 billion in 2023. And its members benefit from a 21% average reduction in bilateral trade costs, as well as higher investment flows between Commonwealth members.  

As part of the visit, the Prime Minister will announce a new UK Trade Centre of Expertise, operating out of the Foreign Office, to drive export-led growth across the grouping. Trade specialists will provide technical and practical assistance to developing countries to help them access and compete in global markets.  

In turn, the partnership is expected to help UK businesses tap into some of the fastest growing economies in the world, such as Uganda and Bangladesh through strengthened economic ties. Over the long term, the project will also aim to lift economies out of poverty, reducing pressure on UK Aid and British taxpayers. 

The Prime Minister is also expected to meet business leaders during CHOGM, as part of his personal campaign to drive investment into every corner of the United Kingdom. 

The meeting, which will include business leaders such as Brian Moynihan, chairman and CEO of Bank of America, and John Neal, CEO of Lloyd’s of London, comes just 10 days after the UK hosted the International Investment Summit, which drove £63 billion of private investment and 38,000 jobs into the UK. 

Prime Minister Keir Starmer said: 

We have a once-in-a-generation opportunity to fix the foundations and change our country’s story to turn around the lives of everyday people in the UK, but we can’t do that with a protectionist approach.

Under this government’s pragmatic and sensible approach, we must harness the opportunities to work with genuine partners – like our Commonwealth family – across the world to build resilient economies that offer real opportunity for our people, whether that is accessing untapped markets, or collaborating on grassroots innovations.

The combined GDP of the Commonwealth is expected to exceed $19.5 trillion in the next three years, we cannot let that economic heft go to waste.

Alongside the Commonwealth Secretary General, the Foreign Secretary is expected to convene Commonwealth foreign ministers to launch a new Commonwealth Investment Plan of Action to mobilise investment across the membership. 

The plan will focus on small and vulnerable economies, easing barriers to trade and investment. The Foreign Secretary will also launch two new trade hubs to help female entrepreneurs in India and Sri Lanka access global markets.   

Foreign Secretary David Lammy said: 

The Commonwealth is a unique forum encompassing 56 countries and a third of the world’s population brought together through shared history and friendship.

Representing some of the world’s fastest growing economies, forging stronger ties with these markets is crucial for delivering jobs and economic growth.

This government is reconnecting Britain in the world and building partnerships that will unlock greater prosperity for all.

During the three-day CHOGM summit, leaders will discuss some of the pressing issues facing Commonwealth nations, including climate change, education and democracy.  

On Friday, the Prime Minister is expected to attend a lunch, hosted by the King for new heads of government, before attending two Commonwealth executive sessions, and the heads of government dinner.

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