Britain is turning to the world’s poorest countries to shore up trade as Brexit puts existing deals on an uncertain footing.
The government promises improved access to UK markets for the world’s poorest countries and to maintain existing duty-free access for “everything but arms” for 48 countries including Bangladesh, Sierra Leone and Haiti, according to an emailed statement from the prime minister’s office. Britain will also seek to expand relationships with nations including Jamaica, Pakistan and Ghana.
After decades of access to the European Union’s single market, the UK now has to strike out alone, following the 2016 vote to leave the bloc. In the Brexit negotiations that began June 19 in Brussels, the EU is demanding clarity on the future of its citizens living in Britain before talks on a post-EU trading relationship begin.
Trade Secretary Liam Fox has been in discussions with countries including the US and India to lay the groundwork for new deals, since the government is barred from completing talks while still part of the EU.
“Our departure from the EU is an opportunity to step up to our commitments to the rest of the world, not step away from them,” Fox said. The announcement “shows our commitment to helping developing countries grow their economies and reduce poverty through trade.”
The UK currently imports around 20 billion pounds ($25.6 billion) a year from developing nations including Bangladesh and Sierra Leone, the government said. Almost 80 percent of the country’s tea comes from the “least developed” nations, and slightly less than a quarter of all coffee imports.
The pound, meanwhile, rose for a fourth day versus the dollar before Prime Minister Theresa May gives more details on her plan to preserve the rights of European Union citizens living in the UK after Brexit.
Sterling advanced against all except one of its Group-of-10 peers before publication of the 15-page policy document, that could go further than her first pitch on the topic last week, which was criticized for costing people rights. A comprehensive and generous package could pave the way for more open negotiations and a better chance of getting a good deal with the world’s largest trade bloc.
“People are eager for May’s proposal on safeguarding EU citizen rights in the UK,” Thu Lan Nguyen, a foreign-exchange strategist at Commerzbank AG, said in emailed comments. “Investors are now hoping for a better proposal which also demonstrates that May is willing to compromise to reach a deal.”