Britain’s Labour government set out its priorities for new trade deals on Monday, with a six-strong group of Gulf countries and India at the top of the list and with ministers aiming to restart negotiations in the autumn.
Jonathan Reynolds, business and trade secretary, said he would also prioritise trade talks with Israel, South Korea, Switzerland and Turkey. The US is a notable absentee from the list.
Reynolds indicated he wanted to resume talks with the six countries of the Gulf Cooperation Council along with India in an effort to secure free trade agreements once targeted by the Conservative government.
Both deals have proved harder to secure than many Brexiters would have liked. Boris Johnson, former Tory prime minister, touted a trade deal with India as a big benefit of Brexit and vowed to secure one “by Diwali”, of 2022.
Trade talks with Israel, South Korea, Switzerland and Turkey were already underway under the last Conservative government. But the prospect of an FTA with the US, once seen as one of the biggest prizes of Brexit, has failed to materialise.
Reynolds added that FTAs were not the only area of trade policy. Prime Minister Sir Keir Starmer has also indicated he wants an improved trading relationship with the EU that stops short of rejoining the single market or customs union.
Reynolds said the government planned to publish a trade strategy that aligned with its industrial strategy, enhancing economic security and supporting its net zero ambitions.
“Boosting trade abroad is essential to deliver a strong economy at home,” Reynolds said. “I’ve wasted no time taking stock of progress and getting ready to press on with trade talks with our international partners.
“From the Gulf to India, our trade programme is ambitious and plays to the UK’s strengths to give British businesses access to some of the most exciting economies in the world.
“Our teams will be entering negotiating rooms as soon as possible, laser-focused on creating new opportunities for UK firms so they can support jobs across the country and deliver the growth we desperately need.”
Reynolds hopes to have British negotiators working with their counterparts by the autumn.
The government claims that a trade agreement with the GCC would provide a substantial economic opportunity, as some £19bn in total had already been invested in each other’s economies by 2021.
Talks on an FTA with the six GCC states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — started under the Tory government in 2022.
At the time, the international trade secretary Anne-Marie Trevelyan said the prospective agreement would target a £1.6bn annual boost to the UK economy, from increased exports of manufactured goods and agricultural produce to financial and digital services.
But after an initial burst of post-Brexit activity, concerns grew in Whitehall about the danger of rushing into trade deals. A 2021 deal with Australia secured by Liz Truss, who was trade secretary at the time, was much criticised. Some Tory MPs saw it as one-sided and detrimental to British farmers.
David Lammy, UK foreign secretary, visited India this month to discuss trade talks restarting after they were suspended because of elections in both countries. A deal has been the subject of protracted talks.
Natarajan Chandrasekaran, chair of Tata Sons group, said: “I am delighted that the new government has moved so quickly to restart trade negotiations with India.
“As one of the largest international investors in the UK, the Tata Group supports any action that strengthens the British economy.”
