In what was arguably the UK’s most impactful political decision in over a decade, the British government continue to create shockwaves throughout Europe by making moves to entirely reorganise and reshape the international trade market. In spite of the rocky start to Britain’s new era of independence from the EU, the increasing news of revenue made through attractive trade deals with its former European partners and other countries further afield has certainly readjusted the tonality of the conversation amongst critics.
A press release from 10 Downing Street at the beginning of May announced the possibility of a lucrative trade agreement between the UK and India. In a virtual meeting on the 4th of May our PM and Prime Minister Modi discussed the terms of extending relations between the two countries, including a new enhanced trade partnership to pave the road towards a UK-India free trade agreement. This new cooperation is set to create more than 6,500 new jobs throughout the UK due to the estimated £1 billion of incoming trade, more than half of this capital is dedicated towards growing emerging sectors of the economy such as technology, health and the carbon neutral objective. With the UK also securing export deals with India worth more than £446 million, British businesses are expected to directly benefit from this which will drive UK growth and create more than 400 British jobs.
New trade agreements may be the UK’s answer to rapid economic recovery.
Even more recently, there have been rumours of a prospective trade deal with Australia which would also create a significant capital influx into the UK. Reportedly, the agreement talks are currently in a deadlock between the clashing objectives of the department for agriculture and the department for international trade. The significance of securing this trade deal would be more than merely of an economic benefit but would also mark a huge political victory for Brexiters. One of the highly anticipated factors of leaving the European Union was the possibility of establishing new free trade agreements with other large international markets in an effort to extend British profit and influence.
A series of trade agreements in new international markets is likely to set in motion a positive domino effect for the UK’s economic recovery. The introduction of freeport status to many key export and import locations may be another factor that points to this as the growth of industry in these areas, and the influx of capital into the region, will drive production and consumer spending which will in turn increase investor confidence. With the gradual easing of restrictions on track to continue the timing of the government’s mission to secure new trade agreements could not be more apt. The hospitality industry is the next sector of the UK’s economy that is set to achieve a monumental boost with the dramatic uplift in consumer spending as even more venues throughout the UK will reopen in the next few weeks. The rising popularity of British coastal town locations has also attracted the eye of many overseas investors and holidaymakers who see opportunity to capitalise on the public’s newfound favour towards staycations.
Governor of the Bank of England, Andrew Bailey, recently increased his forecast for the UK’s economy to 7.25% growth for 2021, an enormous increase from the forecast made only a few months previous. The continuation of positive economic news and the sharp fall in the rate of unemployment has firmly set the nation on the track for ‘Bounce Back Britain’.