UK’s exports to Commonwealth nations surged by £14 billion last year
Forget the EU 27, what about the Commonwealth 56?
summary on a club of 2.5 billion people — over 5 times larger than the EU
On Monday next week, 56 trade ministers from the Commonwealth will meet at Marlborough House in London. Last year the UK’s exports to the Commonwealth rose by an astonishing 22%.
The Commonwealth is a market of consumers over five times more numerous than the EU.
The UK and the Commonwealth — 2022
- UK exports to the Commonwealth were worth £78 billion
2. UK had a trade surplus with the Commonwealth of £3 billion, but a massive deficit with the EU
3. Value of UK exports to the Commonwealth up by 22% in cash terms in 2022
4. The Commonwealth accounted for 9.6% of UK exports
5. The top 5 countries for UK exports were Australia, Canada, India, Singapore and South Africa
[Sources: House of Commons Library | Commonwealth of Nations.]
About the Commonwealth of Nations
The Commonwealth’s roots go back to the British Empire but today any country can join. The last two countries to join did so last year.
King Charles III is Head of the Commonwealth, succeeding to this position following the passing of the United Kingdom’s late Monarch Queen Elizabeth II. He is currently Head of State in 14 of the member countries.
Today the Commonwealth is a voluntary association of 56 independent and equal countries. It is home to 2.5 billion people and includes both advanced economies and developing countries. The member governments have agreed to shared goals like development, democracy and peace and all these values are encompassed in the Commonwealth Charter.
The Commonwealth is predicted to outpace the EU economy in the next few years
- The combined GDP of Commonwealth countries in 2021 was $13.1 trillion (USD)
- It is estimated to reach $19.5 trillion by 2027, almost doubling in 10 years from $10.4 trillion in 2017
- By contrast, EU GDP was worth $17.2 trillion in 2021 and its economic powerhouse (Germany) is now in recession
- Bilateral costs for trading partners in Commonwealth countries are on average 19% less than those in non-member countries
- Half of the top 20 global emerging cities are in the Commonwealth: New Delhi, Mumbai, Nairobi, Kuala Lumpur, Bangalore, Johannesburg, Kolkata, Cape Town, Chennai and Dhaka
[Source: The Commonwealth of Nations | World Bank]
On 01 January 1973, the United Kingdom joined what was then called the ‘European Economic Community’ (EEC). This had a devastating impact on many Commonwealth countries, with the EU imposing large tariffs on Commonwealth products imported into the UK.
On Monday and Tuesday of next week, the trade ministers of the 56 Commonwealth members will gather in London. Brexit Britain, freed from the Customs Union and the EU Commission’s rules on not talking to other countries is back on the global stage.
In many ways, it is surprising that so many countries are prepared to forgive and to re-establish normal trading relationships with the UK again. However the UK is like a parent who has fallen out with their children, children forgive parents and parents forgive children. With many of these countries amongst the fast-growing economies in the world, we look forward to further growth in UK exports around the globe, and to cheaper imports from our Commonwealth partners.
Sources: EU Commission | Commonwealth of Nations | World Bank
