Why the Commonwealth has a new relevance for business post-Brexit

For many people the concept of Commonwealth is outdated and consigned to Britain’s colonial past. So what is its relevance to the UK’s new post-Brexit reality?

The obvious and immediate win-win for both sides is trade. This has never been more important, as the UK looks to negotiate deals with nations around the world, while seeking to develop a new identity outside of the European Union.

Indeed, following the Brexit deal, the UK has been busy refreshing its trading relationships. There are great opportunities here. As an example, India is the giant of the Commonwealth, and is set to become the world’s third largest economy by 2025.

I was part of the PM Theresa May’s Trade delegation to India five years ago, and have done business there. I know that there is an appreciation of UK standards, services and products, as well as a shift towards regulatory alignment on things like law and accounting procedures. UK-India trade is worth £24bn, it supports half a million jobs, and is set to grow.

One of the trade deals that the UK has been busy negotiating and finalising is an Enhanced Trade partnership with India, which the Department for International Trade (DIT) is working to expand into a comprehensive free-trade agreement. We are applying to join the 11 nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Canada, Australia and New Zealand. We are also in advance discussions bilaterally with these countries and other Commonwealth nations.

The benefits of building on Commonwealth links

There is a rationale for prioritising Commonwealth countries. Research shows that intra-Commonwealth trade is 19% cheaper, largely due to similar legal and regulatory systems, which is sometimes labelled the Commonwealth advantage. It is therefore not surprising that the trade of Commonwealth countries tends to be proportionately greater with members than non-members.

However, for me, the Commonwealth is more than just a trading partner, but also a global leader in diversity and inclusivity. It has run like a thread through my life, both personally and as an entrepreneur – I was born in East Africa, my family heritage is from India, and having lived in the UK for almost 50 years, I am now proudly British. I have also done business throughout the world and in particular the Commonwealth.

The Commonwealth has been helpful to many entrepreneurs and small businesses looking to expand. While it doesn’t offer a single market like the EU, it is instead a powerful economic network, accounting for over 15% of global exports and 14% of global GDP.

When I set up my pharmaceuticals company in 1991 from my home garage, this was before the internet – the world was much less connected. We looked for exporting opportunities to emerging markets. Some of the first countries we exported to were Commonwealth ones, such as Barbados, Guyana and many African nations.

The Commonwealth contains emerging economies, which, when they recover from Covid, are set to grow fast. It offers a network through which companies can grow and entrepreneurs can find opportunity. This will be particularly important as countries look to rebuild from the ravages of Covid. The Commonwealth has a very young population, with 60% of people under the age of 30. We need to provide skills, jobs and hope to the next generation.

While trade, investment and capital flows are important, the third factor I’d like to discuss are the people-to-people links, across the Commonwealth’s 2.4 billion inhabitants. The Commonwealth spans every continent and has diversity at its heart. Its people are unified through common ties, cemented by language and shared experiences and history. For Commonwealth countries these bonds are reflected in the strong diasporas in London, the Midlands and the rest of the UK.

It should also be recognised that trade brings people together, and facilitates cooperation and understanding between nations, which is more important than ever as we forge relationships away from our traditional European partners.

Perhaps we underappreciate how important our ties to Commonwealth countries are to our history, but also to our present and future; and how together we will continue to play a key role in championing global trade, diversity and inclusion.

As Chair-in-Office of the Commonwealth, the UK is in the hot seat for now but over the longer term we must capitalise on the powerful network it provides, and the opportunities to enhance business, trade and people-to-people ties in this new post-Brexit world.