Post-Brexit trade plan must be updated
The Resolution Foundation is an independent think tank focused on improving living standards of those on low to middle incomes. It has recently called on the Government to reconsider its initial post Brexit trade strategy, encouraging a bolder, more innovative approach that protects British manufacturing firms and looks for fresh opportunities for UK services companies in new markets.
The Foundation has published a report on the post-Brexit economic landscape and the decisions facing the UK. The report suggests that the initial plan of securing Free Trade Agreements (FTAs) with other countries post-Brexit has been successful, but suggests that a new approach is now needed.
It claims that the prospect of achieving FTAs with major economies like the United States and China seems elusive, while Britain’s manufacturing sector is at risk, given how closely it’s linked to the EU. It goes on to say that since Brexit the role of UK manufacturing firms in European supply chains is at risk. The report states their positions will weaken further over time, as a result of rising trade costs, which would cause a considerable negative impact on the UK’s economy.
The Resolution Foundation suggests that a ‘twin-track’ trade strategy to be the best option. This new plan would aim to secure and support British manufacturers, while aggressively promoting the UK’s track record as the world’s second-largest exporter of services.
Sophie Hale, Principal Economist at the Resolution Foundation, said, “For the first time in half a century, Britain needs a trade strategy. But it does not have one.”
The ultimate goal, she explains, is not just to adapt to post-Brexit realities but to proactively shape the future economic landscape for the benefit of the UK.
You can read the full Resolution Foundation report here.