Business and trade secretary Jonathan Reynolds outlined his agenda for trade and his commitment to creating an aligned industrial strategy in a Guardian op-ed on Sunday (25 August).
Reynolds wrote of “pressing ahead” with Conservative-era trade deals, while seeking a closer, less “adversarial” relationship with the EU.
He also emphasised an upcoming drive to attract international investment to the UK, which he stated would create “good, well-paid jobs in the places where they’re most needed” and support the transition to net zero.
The article was published just days before prime minister Sir Keir Starmer’s national address this morning, in which he addressed the domestic challenges the country faces.
Continuity in trade
Reynolds described his trade agenda as “opening up new markets and going for growth abroad at every opportunity”. In practice, that includes continuing to pursue “high-quality, barrier-removing trade deals” with India and the Gulf Cooperation Council (GCC).
He led the piece with an update on the progress of the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – a bloc comprised of large markets either side of the Pacific Ocean.
Heralding the agreement as a boost for both “big-hitting British exporters” and “smaller businesses”, he wrote that Peru is likely to be the sixth and final member needed to ratify the deal, enabling the UK’s accession by the end of the year.
Europe ‘reset’
Highlighting the importance of the UK’s trading relationship with the EU – “our largest trading partner by quite some margin” – Reynold wrote that he wants to hit “the reset button” with Brussels.
He reiterated Labour election pledges to remove “unnecessary border checks” and “secure mutual recognition” for professional qualifications on either side of the English Channel, making it easier for UK firms to operate in EU countries.
This follows diplomatic overtures to Europe from Starmer which included welcoming European leaders to a Blenheim Palace summit shortly after his election.
Industrial plans
The business and trade secretary also set out a new international course for industry, centred on attracting greater inward overseas investment ahead of October’s International Investment Summit.
Reynolds emphasised that industrial policy will be “fully aligned with our trade strategy”, which will in turn become a driver of economic growth.
“[Investment will create] good jobs across the country, which will put more money in people’s back pockets – meaning British taxpayers can reap the benefits of our economic growth.”
Chartered Institute perspective
The director general of the Chartered Institute of Export and International Trade, Marco Forgione, welcomed what he called an “important statement” in a LinkedIn post.
He echoed the importance of creating a national industrial strategy that fully integrates the UK’s trade agenda.
‘Painful’ solutions
Reynolds' optimistic agenda for trade and industry came days before Starmer’s unexpected national address on Tuesday, discussing the immediate challenges he says the UK faces.
Laying the groundwork for anticipated tax hikes in the Autumn Budget, he warned that resolving the UK’s current situation – a reported £22bn fiscal “black hole” – will be “painful”.
Referring to the cut to pensioners’ winter fuel allowance, he said there will be “more of these decisions to come”, suggesting there would be no reversal of the cut despite a recent announcement from energy regulator Ofgem that it will lift the cap on gas prices come October, adding potentially 10% to household energy bills.
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