Commonwealth free trade
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Commonwealth free trade is the process or proposal of removing barriers of trade between member states of the
Commonwealth of Nations The Commonwealth of Nations, simply referred to as the Commonwealth, is a political association of 56 member states, the vast majority of which are former territories of the British Empire. The chief institutions of the organisation are the Co ...
. The preferential trade regime within the
British Empire The British Empire was composed of the dominions, colonies, protectorates, mandates, and other territories ruled or administered by the United Kingdom and its predecessor states. It began with the overseas possessions and trading posts esta ...
continued in some form amongst Commonwealth nations under the
Imperial Preference Imperial Preference was a system of mutual tariff reduction enacted throughout the British Empire following the Ottawa Conference of 1932. As Commonwealth Preference, the proposal was later revived in regard to the members of the Commonwealth of N ...
system, until that system was dismantled after
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
due to changes in geopolitics and the pattern of global trade, and the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
's entry into the
European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
. The idea of promoting renewed inter-Commonwealth trade emerged in the late 20th century as a response to the evolution of the global economy. At one extreme, proposals have been raised for the creation of a multilateral free trade area comprising all member states of the
Commonwealth of Nations The Commonwealth of Nations, simply referred to as the Commonwealth, is a political association of 56 member states, the vast majority of which are former territories of the British Empire. The chief institutions of the organisation are the Co ...
. Today, most Commonwealth countries are pursuing regional integration projects, including the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
(2 members),
Caribbean Community The Caribbean Community (CARICOM or CC) is an intergovernmental organization that is a political and economic union of 15 member states (14 nation-states and one dependency) throughout the Caribbean. They have primary objectives to promote econom ...
(12 members),
Southern African Customs Union The Southern African Customs Union (SACU) is a customs union among five countries of Southern Africa: Botswana, Eswatini, Lesotho, Namibia and South Africa. Its headquarters are in the Namibian capital, Windhoek. It was established in 1910. His ...
(5 members),
East African Community The East African Community (EAC) is an intergovernmental organisation composed of seven countries in the Great Lakes region of East Africa: the Democratic Republic of the Congo, the United Republic of Tanzania, the Republics of Kenya, Burundi, ...
(4 members), and the
South Asian Association for Regional Cooperation The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia. Its member states are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan ...
(4 members). However, at the 2005 Summit in Malta, the heads of government endorsed Commonwealth members pursuing free trade amongst one another in order to assist the development of poorest members by allowing them duty-free and quota-free access to the markets of developing and developed countries. The heads of government also endorsed looking into ways the organisation can strengthen dialogue, networking, and collaboration on trade and economic issues between Commonwealth members. The concept of a multilateral Commonwealth free trade area has recently become popularised in Britain among
Eurosceptics Euroscepticism, also spelled as Euroskepticism or EU-scepticism, is a political position involving criticism of the European Union (EU) and European integration. It ranges from those who oppose some EU institutions and policies, and seek refor ...
who campaigned for withdrawal from the EU prior to the UK's EU membership referendum, which resulted in the decision to leave.


History


High Imperialism

Throughout the 17th, 18th and 19th centuries, Britain exercised an informal trade system with her colonies and self-governing dominions.


Last years of empire

During the early 20th century, several political figures in Britain, led by
Joseph Chamberlain Joseph Chamberlain (8 July 1836 – 2 July 1914) was a British statesman who was first a radical Liberal, then a Liberal Unionist after opposing home rule for Ireland, and eventually served as a leading imperialist in coalition with the Cons ...
, argued for a policy of
Imperial Preference Imperial Preference was a system of mutual tariff reduction enacted throughout the British Empire following the Ottawa Conference of 1932. As Commonwealth Preference, the proposal was later revived in regard to the members of the Commonwealth of N ...
– both to promote unity within the British Empire, and to assure Britain's position as a world power. The policy was controversial as it pitted proponents of Imperial trade with those who sought a general policy of trade liberalisation with all nations. The schism helped contribute to the defeat of Prime Minister
Arthur Balfour Arthur James Balfour, 1st Earl of Balfour, (, ; 25 July 184819 March 1930), also known as Lord Balfour, was a British Conservative Party (UK), Conservative statesman who served as Prime Minister of the United Kingdom from 1902 to 1905. As F ...
and his Conservative-Unionist government in the 1906 general election, and had serious ramifications for Conservative prospects in the
1923 Events January–February * January 9 – Lithuania begins the Klaipėda Revolt to annex the Klaipėda Region (Memel Territory). * January 11 – Despite strong British protests, troops from France and Belgium occupy the Ruhr area, t ...
and 1929 general elections. One notable victory had been the establishment of the
Empire Marketing Board The Empire Marketing Board was formed in May 1926 by the Colonial Secretary Leo Amery to promote intra-Empire trade and to persuade consumers to 'Buy Empire'. It was established as a substitute for tariff reform and protectionist legislation and ...
in 1926, which encouraged Britons to 'Buy Empire'. In 1930,
Oswald Mosley Sir Oswald Ernald Mosley, 6th Baronet (16 November 1896 – 3 December 1980) was a British politician during the 1920s and 1930s who rose to fame when, having become disillusioned with mainstream politics, he turned to fascism. He was a member ...
and several junior ministers in the Labour government issued the Mosley Memorandum proposing a reform of the British Empire and its Dominions into an
autarkic Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especiall ...
trading bloc, alongside extensive
public works Public works are a broad category of infrastructure projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community. They include public buildings ( municipal buildings, sc ...
programs funded by high loans and better
pensions A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
to reverse interwar unemployment and poverty. The Memorandum was rejected by the Cabinet under Prime Minister
Ramsay MacDonald James Ramsay MacDonald (; 12 October 18669 November 1937) was a British politician who served as Prime Minister of the United Kingdom, the first who belonged to the Labour Party, leading minority Labour governments for nine months in 1924 ...
and Chancellor of the Exchequer
Philip Snowden Philip Snowden, 1st Viscount Snowden, PC (; 18 July 1864 – 15 May 1937) was a British politician. A strong speaker, he became popular in trade union circles for his denunciation of capitalism as unethical and his promise of a socialist utop ...
on grounds of cost and deficit, and was also rejected by the
Parliamentary Labour Party In UK politics, the Parliamentary Labour Party (PLP) is the parliamentary group of the Labour Party in Parliament, i.e. Labour MPs as a collective body. Commentators on the British Constitution sometimes draw a distinction between the Labour P ...
and the
National Executive Committee National Executive Committee is the name of a leadership body in several organizations, mostly political parties: * National Executive Committee of the African National Congress, in South Africa * Australian Labor Party National Executive * Nationa ...
. Mosley subsequently departed the Labour Party to form the New Party, and later became the founder of the
British Union of Fascists The British Union of Fascists (BUF) was a British fascist political party formed in 1932 by Oswald Mosley. Mosley changed its name to the British Union of Fascists and National Socialists in 1936 and, in 1937, to the British Union. In 1939, fo ...
.


Depression and Ottawa Conference

In 1933, in the midst of the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, representatives of Britain, the Dominions, and the Colonies met in
Ottawa, Canada Ottawa (, ; Canadian French: ) is the capital city of Canada. It is located at the confluence of the Ottawa River and the Rideau River in the southern portion of the province of Ontario. Ottawa borders Gatineau, Quebec, and forms the core of ...
, to hold the Commonwealth Conference on Economic Consultation and Co-operation. There had been an initial agreement on
Imperial Preference Imperial Preference was a system of mutual tariff reduction enacted throughout the British Empire following the Ottawa Conference of 1932. As Commonwealth Preference, the proposal was later revived in regard to the members of the Commonwealth of N ...
, but a comprehensive agreement failed to materialise. Many of the Dominion leaders attributed this to the attitude of the British Dominions Secretary
J. H. Thomas James Henry Thomas (3 October 1874 – 21 January 1949), sometimes known as Jimmy Thomas or Jim Thomas, was a Welsh trade unionist and Labour (later National Labour) politician. He was involved in a political scandal involving budget leaks. ...
during the negotiations. In 1935, the Canadian Prime Minister,
R. B. Bennett Richard Bedford Bennett, 1st Viscount Bennett, (July 3, 1870 – June 26, 1947), was a Canadian lawyer, businessman, philanthropist, and politician who served as the 11th prime minister of Canada from 1930 to 1935. Bennett was born in ...
, a
Conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization i ...
who endorsed Imperial Preference, was replaced by a
Liberal Liberal or liberalism may refer to: Politics * a supporter of liberalism ** Liberalism by country * an adherent of a Liberal Party * Liberalism (international relations) * Sexually liberal feminism * Social liberalism Arts, entertainment and m ...
,
William Lyon Mackenzie King William Lyon Mackenzie King (December 17, 1874 – July 22, 1950) was a Canadian statesman and politician who served as the tenth prime minister of Canada for three non-consecutive terms from 1921 to 1926, 1926 to 1930, and 1935 to 1948. A Li ...
. King responded to pressure from U.S. Secretary of State
Cordell Hull Cordell Hull (October 2, 1871July 23, 1955) was an American politician from Tennessee and the longest-serving U.S. Secretary of State, holding the position for 11 years (1933–1944) in the administration of President Franklin Delano Roosevelt ...
and abandoned Imperial Preference. In the case of the Commonwealth, the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
was hostile to it from its inception, notwithstanding the fact that in the cases of
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
,
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
,
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
and
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
, there was an overwhelming preference for a trade system based on the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
rather than the U.S.


Post-war

The conclusion of World War II drastically affected the prospects for an agreement Commonwealth trade. The United States emerged as the foremost political and economic power, and its policy was to promote generalised free trade, primarily through the
General Agreement on Tariffs and Trade (GATT) The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its pre ...
. The
United Nations Monetary and Financial Conference The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United ...
, held in
Bretton Woods, New Hampshire Bretton Woods is an area within the town of Carroll, New Hampshire, Carroll, New Hampshire, United States, whose principal points of interest are three leisure and recreation facilities. Being virtually surrounded by the White Mountain National Fo ...
, in 1944, had also created a direct link between the value of
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...
and the
United States dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
, thereby establishing it as the world's reserve fiat currency under the
Bretton Woods system The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretto ...
. The war had also left Britain heavily indebted, economically weakened, and unable to absorb the flow of exports from Commonwealth jurisdictions. The Dominions, primarily Canada, directed their trade more heavily to the US market as a consequence. The idea of enhanced trade between Canada and Britain was explored in the mid-1950s by the Conservative government of Prime Minister
John G. Diefenbaker John George Diefenbaker ( ; September 18, 1895 – August 16, 1979) was the 13th prime minister of Canada, serving from 1957 to 1963. He was the only Progressive Conservative party leader between 1930 and 1979 to lead the party to an electio ...
. The plan, in response to the Canadian government's concern with over-reliance on the United States, was to adopt policies that would see up to 15 percent of Canada's US exports diverted to the UK. Representatives for both Diefenbaker and British Prime Minister
Harold Macmillan Maurice Harold Macmillan, 1st Earl of Stockton, (10 February 1894 – 29 December 1986) was a British Conservative statesman and politician who was Prime Minister of the United Kingdom from 1957 to 1963. Caricatured as "Supermac", he ...
held exploratory talks, but no agreement was ever reached.


British entry into the EEC

Britain's entry into the European Economic Community (EEC) in 1973, and its evolution as a member state of the European Union (EU) has meant that for practical purposes, the United Kingdom cannot independently enter into negotiations with Commonwealth states to establish a free trade agreement. Instead, the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
, as a representative of all its members, negotiates collectively. However, after the decision on the 23 June 2016 referendum by Britain to leave the EU and as the
Article 50 Withdrawal from the European Union is the legal and political process whereby an EU member state ceases to be a member of the Union. Article 50 of the Treaty on European Union ( TEU) states that "Any Member State may decide to withdraw from t ...
of the EU's
Lisbon Treaty The Treaty of Lisbon (initially known as the Reform Treaty) is an international agreement that amends the two treaties which form the constitutional basis of the European Union (EU). The Treaty of Lisbon, which was signed by the EU member sta ...
has been invoked, Britain will be able to negotiate its own trade deals.


The Commonwealth Effect

The 1997 Commonwealth Heads of Government Meeting (CHOGM) at
Edinburgh Edinburgh ( ; gd, Dùn Èideann ) is the capital city of Scotland and one of its 32 Council areas of Scotland, council areas. Historically part of the county of Midlothian (interchangeably Edinburghshire before 1921), it is located in Lothian ...
was presented with research conducted by Drs. Sarianna Lundan and Geoffrey Jones, and commissioned by the
Commonwealth Secretariat The Commonwealth Secretariat is the main intergovernmental agency and central institution of the Commonwealth of Nations. It is responsible for facilitating co-operation between members; organising meetings, including the Commonwealth Heads o ...
. The paper, entitled "The 'Commonwealth Effect' and the Process of Internationalisation", measured whether or not Commonwealth jurisdictions enjoyed a qualitative advantage in trade with one another as opposed to equivalent non-Commonwealth nations. Their research found that even in the absence of trade treaties, there was a clear cost advantage in trade between Commonwealth nations, and that the overhead costs of doing business were reduced by up to 15 percent in comparison to trade outside the Commonwealth.


Commonwealth Advantage

The Commonwealth Advantage program was a shared initiative between the Toronto Branch of the
Royal Commonwealth Society The Royal Commonwealth Society (RCS) is a non-governmental organisation with a mission to promote the value of the Commonwealth and the values upon which it is based. The Society upholds the values of the Commonwealth Charter, promoting confli ...
, and the Canadian Advanced Technology Alliance (CATA) which ran from 2004 until 2008. Chaired by the Hon. Sinclair Stevens, a former Canadian International Trade Minister, the campaign was focused on developing strategic partnerships between Commonwealth-based companies.


CHOGM 2005 – Malta

In response to the lack of progress achieved in the
Doha round The Doha Development Round or Doha Development Agenda (DDA) is the trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore. Its objective was to lower trade barriers a ...
of trade liberalisation negotiations in the
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...
,
Commonwealth Heads of Government The Commonwealth Heads of Government (CHOG) is the collective name for the government leaders of the nations with membership in the Commonwealth of Nations. They are invited to attend Commonwealth Heads of Government Meetings every two years, ...
, at their 2005 Summit in
Malta Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
, endorsed the idea of pursuing trade agreements among Commonwealth member states.


After Brexit

Since declaring its intention to withdraw from the European Union, the United Kingdom has begun to quickly negotiate successor agreements with dozens of countries and blocs, including many Commonwealth members. Completed agreements include those with
CARIFORUM The Caribbean Forum (CARIFORUM) is a subgroup of the Organisation of African, Caribbean and Pacific States and serves as a base for economic dialogue with the European Union. It was established in 1992. Its membership comprises the 15 Caribbean ...
, Fiji and Papua New Guinea, (March 2019)
Southern African Customs Union The Southern African Customs Union (SACU) is a customs union among five countries of Southern Africa: Botswana, Eswatini, Lesotho, Namibia and South Africa. Its headquarters are in the Namibian capital, Windhoek. It was established in 1910. His ...
and
Mozambique Mozambique (), officially the Republic of Mozambique ( pt, Moçambique or , ; ny, Mozambiki; sw, Msumbiji; ts, Muzambhiki), is a country located in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi ...
(October 2019),
Kenya ) , national_anthem = "Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...
(November 2020) and
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
(December 2021). Discussions with Canada were expected to conclude by late 2020. Several other nations that do not have free trade with the EU are also in negotiations with the United Kingdom, including New Zealand. However, none of these negotiations have involved Commonwealth-wide or free trade or any other broader proposal.


Commonwealth free trade as policy

Because of their very different economic profiles, Commonwealth countries' interests are not always aligned. In principle, resource exporters such as Canada, Australia, and most of the Caribbean and African Commonwealth countries are complementary to resource importers such as the United Kingdom and India. However, the historical trade ties between them were based on terms that were dictated by the
Colonial Office The Colonial Office was a government department of the Kingdom of Great Britain and later of the United Kingdom, first created to deal with the colonial affairs of British North America but required also to oversee the increasing number of col ...
in Britain. Since the former dominions and colonies have achieved independence, they are free to refuse British initiatives and seek better deals elsewhere. Specifically, agricultural exporters in the
Cairns Group The Cairns Group (Cairns Group of Fair Trading Nations) is an interest group of 19 agricultural exporting countries, composed of Argentina, Australia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakist ...
(including members Australia, Canada, New Zealand, Pakistan, and South Africa) are at odds with the importing countries at the
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...
. These countries pursue independent trade policies. Notably Australia (2005) and Canada (1988), and Singapore (2004) have free trade agreements with the United States, and New Zealand (2008) has one with China. Meanwhile, New Zealand and Singapore are already members of the
Trans-Pacific Strategic Economic Partnership The Trans-Pacific Strategic Economic Partnership Agreement (TPSEP), also known as P4, is a trade agreement between four Pacific Rim countries concerning a variety of matters of economic policy. The agreement was signed by Brunei, Chile, Singapore ...
, which Australia, Canada and Malaysia are attempting to join (along with major non-Commonwealth countries). Furthermore, the proposed
Comprehensive Economic Partnership for East Asia The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation, free trade agreement, among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over b ...
would include Malaysia, Singapore, Brunei, India, Australia, and New Zealand.


Canada

Commonwealth trade, as such, has not been a notable policy position in Canada since the failed Diefenbaker proposal of the 1950s. Instead, Canada has pursued deep economic integration with the United States on the one hand (including the
Canada–United States Free Trade Agreement The Canada–United States Free Trade Agreement (CUSFTA), official name as the Free Trade Agreement between Canada and the United States of America (french: links=no, Accord de libre-échange entre le Canada et les États-Unis d'Amérique), wa ...
in 1988, the
North American Free Trade Agreement The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that crea ...
in 1994, and the
United States–Mexico–Canada Agreement The Agreement between the United States of America, the United Mexican States, and Canada (USMCA) Commonly known as the United States–Mexico–Canada Agreement (USMCA) in the United States and the Canada–United States–Mexico Agreement (CU ...
in 2018), and a generalised diversification of trade on the other hand including the " third option" policy of the 1970 (a failed attempt to diversify Canada's trade via negotiations with
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
and the
European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
). This has been reinforced with a new wave of free trade agreements following NAFTA in 1994, including five Latin American countries, the
European Free Trade Association The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four List of sovereign states and dependent territories in Europe, European states: Iceland, Liechtenstein, Norway and Switzerlan ...
and more recently the European Union, as well the failed
Free Trade Area of the Americas The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. Negotiations to establish the FTAA ended in failure, however, with all parties unab ...
in the early 2000s, and negotiations towards the
Trans-Pacific Partnership The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement, was a highly contested proposed trade agreement between 12 Pacific Rim economies, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singa ...
since 2012. In 2005, Canadian writer and political activist Brent H. Cameron wrote 'The Case for Commonwealth Free Trade', which argued the merits of establishing a trade and investment agreement that would initially combine the most developed member economies (Australia, Canada, New Zealand, Singapore) but could eventually include developing members such as India and South Africa. Cameron conceded that UK participation would be difficult with European Union (EU) membership, but suggested that it be included if Britain were to exit that agreement: ''"It is proposed that a CFTA membership and expansion be conducted in four distinct phases: Phase 1 would see the creation of an initial grouping of four nations - Australia, Canada, New Zealand, and the United Kingdom. This grouping represents the most affluent and industrialized economies of the Commonwealth. Combined with stable political, judicial and social institutions, their ability to quickly integrate into a CFTA is vitally important if the organization is to have the ability to expand and succeed."'' , 75% of Canadian trade takes place with countries which Canada has a free trade agreement, but this does not include any Commonwealth members. Canada is currently in negotiations with the
Caribbean Community The Caribbean Community (CARICOM or CC) is an intergovernmental organization that is a political and economic union of 15 member states (14 nation-states and one dependency) throughout the Caribbean. They have primary objectives to promote econom ...
(primarily Commonwealth countries), as well as India and Singapore. Canada has signed free trade agreements with the European Union (Malta and Cyprus are Commonwealth members). This initially included the UK but following Brexit, a deal was signed directly between Canada and the UK.


New Zealand

Winston Peters Winston Raymond Peters (born 11 April 1945) is a New Zealand politician serving as the leader of New Zealand First since its foundation in 1993. Peters served as the 13th deputy prime minister of New Zealand from 1996 to 1998 and 2017 to 2020 ...
, the leader of the
New Zealand First New Zealand First ( mi, Aotearoa Tuatahi), commonly abbreviated to NZ First, is a nationalist and populist political party in New Zealand. The party formed in July 1993 following the resignation on 19 March 1993 of its leader and founder, Winst ...
political party, called in February 2016 for a Commonwealth Free Trade Area modelled on the Closer Economic Relations Trade Agreement between Australia and New Zealand. In his comments, he suggested the inclusion of the UK, Canada, Australia and New Zealand in this area, with the possibility of adding
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
,
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
, or others, referring to the putative free trade area as a 'Closer Commonwealth Economic Relations' area, or CCER. CCER was included as New Zealand government policy in the Labour-NZ First coalition agreement. New Zealand has been negotiating a free trade deal with the UK, following its withdrawal from the EU's
Customs Union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...
.


United Kingdom


Policy before Brexit

The United Kingdom has been a member of the European Union and has therefore been unable to negotiate its own trade agreements for several decades. However, after the United Kingdom formally leaves the European Union, it may again be able to negotiate its own trade deals. While the UK has been in the EU it has actively pressured the EU to pursue trade agreements with other Commonwealth countries. In part, this has resulted in the EU initiating negotiations on free trade agreements with a number of Commonwealth countries. At present, Canada and India are both in the midst of negotiating free trade agreements with the European Union. Furthermore, a number of Commonwealth countries, including South Africa,
Cameroon Cameroon (; french: Cameroun, ff, Kamerun), officially the Republic of Cameroon (french: République du Cameroun, links=no), is a country in west-central Africa. It is bordered by Nigeria to the west and north; Chad to the northeast; the C ...
,
Zambia Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most cent ...
, and the 12 commonwealth members of the Caribbean Community, already have free trade agreements with the EU. The EU, through the
Lome Lome may refer to: Places * Lomé, the capital and largest city of Togo * Lome (woreda), a woreda in the Oromia Region of Ethiopia * Lome, Slovenia, a dispersed settlement in the Municipality of Idrija in the Inner Carniola region Other uses * Lom ...
and
Cotonou Agreement The Cotonou Agreement is a treaty between the European Union and the African, Caribbean and Pacific Group of States ("ACP countries"). It was signed in June 2000 in Cotonou, Benin's largest city, by 78 ACP countries (Cuba did not sign) and the ...
s, have extended some preferential trade access to developing Commonwealth countries. However, the idea of establishing a free trade area within the Commonwealth has garnered interest in the UK amongst politicians and parties that advocated leaving the European Union who cite the development of a Commonwealth free trade policy as an important step in reshaping the UK's trade policy. The
UK Independence Party The UK Independence Party (UKIP; ) is a Eurosceptic, right-wing populist political party in the United Kingdom. The party reached its greatest level of success in the mid-2010s, when it gained two members of Parliament and was the largest par ...
has included a call for a Commonwealth Free Trade Agreement in its policy manifesto during the 2010 British general election. In addition, some members of the British
Conservative Party The Conservative Party is a name used by many political parties around the world. These political parties are generally right-wing though their exact ideologies can range from center-right to far-right. Political parties called The Conservative P ...
, including MEP
Daniel Hannan Daniel John Hannan, Baron Hannan of Kingsclere (born 1 September 1971) is a British writer, journalist and former politician serving as an adviser to the Board of Trade since 2020. He is the founding president of the Initiative for Free Trade ...
and MP
Andrew Rosindell Andrew Richard Rosindell MP (; born 17 March 1966) is a British Conservative politician. He became the Member of Parliament (MP) for the Romford constituency in Greater London in 2001. He has been the international director of the European ...
, have written extensively on the merits of expanding trade within the Commonwealth and the broader Anglosphere. On October 8, 2012, Tim Hewish and James Styles released their paper "Common Trade, Common Wealth, Common Growth" at the UK Conservative Party Conference in
Birmingham Birmingham ( ) is a city and metropolitan borough in the metropolitan county of West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1.145 million in the city proper, 2.92 million in the West ...
,
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...
. The following day saw British Foreign Secretary William Hague comment upon how the Commonwealth, which had been 'neglected' by previous UK governments, presented "enormous opportunities" for the nation. Supporters of Britain's membership of the European Union have criticised the proposal for a Commonwealth free trade area as unlikely in practice to come to fruition.


Policy since Brexit

The policy since the end of Brexit has been to maintain the integrity of a free and independent state regaining its sovereignty, it has been upon not just commonwealth free trade but also that of
CANZUK CANZUK is a proposed alliance comprising Canada, Australia, New Zealand and the United Kingdom as part of an international organisation or confederation similar in scope to the former European Economic Community. This includes increased trade, ...
and a $20 trillion United States trade deal the UK now having clearly wider interests then that of the 26 EU member states, yet Norway, Switzerland, Russia, and Ukraine, not in the EU but as European nations are of interest for trade. The commonwealth however is still important to the UK nations rejoining like the Maldives with 53 members, with India in the commonwealth its the biggest democracy, its PPP is judged to surpass the US by 2050, so trade with the UK would be of significant interest to the UK as a matter of economic progress.


See also

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CANZUK CANZUK is a proposed alliance comprising Canada, Australia, New Zealand and the United Kingdom as part of an international organisation or confederation similar in scope to the former European Economic Community. This includes increased trade, ...
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Commonwealth banknote-issuing institutions Commonwealth banknote-issuing institutions also British Empire Paper Currency Issuers comprises a list of public, private, state-owned banks and other government bodies and Currency Boards who issued legal tender: banknotes. Africa Biafra *Bank ...
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Commonwealth Freedom of Movement Organisation CANZUK International is an international advocacy organisation which aims to achieve the free movement of citizens, free trade agreements and foreign policy cooperation between Canada, Australia, New Zealand and the United Kingdom through i ...
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Imperial Federation The Imperial Federation refers to a series of proposals in the late 19th and early 20th centuries to create a federal union to replace the existing British Empire, presenting it as an alternative to colonial imperialism. No such proposal was eve ...
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Imperial Preference Imperial Preference was a system of mutual tariff reduction enacted throughout the British Empire following the Ottawa Conference of 1932. As Commonwealth Preference, the proposal was later revived in regard to the members of the Commonwealth of N ...
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List of Commonwealth of Nations countries by GDP List of Commonwealth of Nations countries by GDP may refer to: *List of Commonwealth of Nations countries by GDP (nominal), a list using the current exchange rates for national currencies *List of Commonwealth of Nations countries by GDP (PPP) ...
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List of stock exchanges in the Commonwealth of Nations This is a list of active stock exchanges in the Commonwealth of Nations (Full Members). The Commonwealth of Nations features member-states located on all major continents and represents almost one-third of the Earth's population. Some states ha ...


References


External links


Commonwealth Secretariat

UK Independence Party

Canadian Advanced Technology Alliance (CATA)

The Case for Commonwealth Free Trade

Home-Commonwealth Trade
{{Commonwealth of Nations topics, state=expanded Anglosphere Commonwealth of Nations Proposed free trade agreements