Yesterday (10 June), the Liberal Democrats introduced their ‘For A Fair Deal’ manifesto. The 117-page document made a wide range of commitments on business, taxes and other key policy areas.
When it comes to international trade, the Liberal Democrats made a number of promises that would impact UK imports and exports.
1. Brexit means Brexit?
Perhaps unsurprisingly for a party that ran a pro-EU campaign in 2019, the Liberal Democrats have promised a “four-stage” road-map for returning the UK to the EU, as a way of fixing the current “broken relationship”.
- Step 1: Taking unilateral steps to rebuild the relationship by “declaring a fundamental change in the UK’s approach and improving channels for foreign policy cooperation”
- Step 2: “Rebuilding confidence” by seeking agreements or associations with the EU, including rejoining the Erasmus Plus education initiative and cooperating on security, defence and crime
- Step 3: Deepening the trading relationship between the EU and UK, including seeking veterinary and plant health agreements and mutual recognition deals
- Step 4: Once “trust and friendship” has been renewed, the Lib Dems would seek to rejoin the European customs union
The party criticised the government for damaging trade relations with Europe, saying that the UK currently has less “clout in trade negotiations”.
2. Unlocking the UK
The Lib Dems also said that they would “unlock British businesses’ global potential”, partly by cutting “trade barriers”, on top of their commitments on rejoining the EU single market.
A key part of this would be to give parliament “real power” to set trade policy, with proper consultations and sign-off on both negotiation mandates and completed trade deals.
There is currently a process for parliament to review and scrutinise such deals, but this has been criticised by MPs across parties as unfit for purpose.
Another part of the Liberal Democrats' trade plan would be to give SMEs a single point of contact for all information on trade, with “tailored support” available to those who need it, as well as setting a clear objective for ministers to boost SME trade.
3. Sanctions
The Liberal Democrats' manifesto promises to continue to utilise the sanctions regime, introducing more human rights considerations into the existing system.
Firstly, the party promises to continue use the so-called ‘Magnitsky sanctions’ regime to “stand up against human rights abuses”.
Taking its name from Sergei Magnitsky, a Russian lawyer who died in prison after accusing tax officials of fraud, the regime targets those responsible for human rights violations or corruption.
The Liberal Democrats also promise to “ban imports” from areas with human rights abuses, specifically naming Xinjiang in China as an example, and to audit assets owned by foreign officials whose regimes are abusers of human rights.
On the ever-important topic of Russian sanctions, the Lib Dems appear to double down on the current sanctions regime, promising seizure of frozen Russian assets, a crackdown on oligarchs moving money through the UK and more resources for the National Crime Agency.
There would also be a “presumption of denial” for arms exports to governments listed as human rights concerns by the Foreign Office.
4. Imports and exports
Specific industries have been namechecked by the Lib Dems in the policy launch.
The manifesto criticised the current trading regime with the EU as contributing to high food prices and damaging farmers ability to sell to Europe.
Under the ‘Fair deal for farmers’, all imported foods would need to be checked and meet UK health and welfare standards. There would also be a “robust and clear-to-understand” food labelling regime.
Foie gras and food produced by antibiotic growth promoters would be banned for sale, as would any product that is not allowed to be produced in the UK.
The party said the whisky industry would benefit from a planned excise duty restructure to support the UK’s exports of the alcoholic beverage.
There would also be a ban in the export of plastic waste by 2030 as part of a plan to cut plastics pollution worldwide.
5. Trade as a force for good
Under the Lib Dems, human rights, labour and environmental protection would be placed at the “heart” of international trade negotiations.
As well as re-aligning the sanctions regime to fit human rights concerns, the way that the UK approaches trade deals would be re-worked.
“We will prioritise the depth and quality of trade deals, ensuring they deliver benefits for the whole country”, according to the manifesto.
The Lib Dems said they would ensure that the lives of women and girls would not be “ignored” in favour of trade and regional alliances. A “general duty of care” for the environment and human rights in supply chains would be introduced.
IOE&IT perspective
Grace Thompson, Institute of Export & International Trade UK public affairs lead, said:
“It is interesting to see a trend across political parties, including the Liberal Democrats, in terms of taking a fresh look at both the negotiation and impact of trade deals. The need for trade deals to deliver regional benefits across the UK and for ESG considerations to be more prominent in negotiations are topics which are cropping up time and again.
“Another point of note within the Liberal Democrat manifesto is the policy on providing SMEs with more tailored trade support and focusing ministers’ minds on specific objectives to increase SME trade. Again, this seems to be an area in which many of the political parties are realising more work is needed to help SMEs grow through international trade.
“Reform of parliamentary processes in relation to scrutinising trade policy also caught my eye, with greater scrutiny of trade deals, particularly, having been called for by the Business and Trade Committee for some time."