We live in a world where we are more connected than ever before. The UK is closely linked to Malta through strong ties of history, friendship, business, and a wealth of common interests. These international connections offer huge potential for growth in trade and investment, as long as markets are open and countries are able to trade freely with one another.
The fastest growing countries tend to be those with the fewest trade barriers. So to realise our potential we must commit to open markets globally. We must not slip back into protectionism.
That is why the UK government published on 9 February its Trade and Investment White Paper: an ambitious strategy to nurture international trade and investment relationships, strengthen the multilateral system, build up our domestic business environment, and enable developing countries to build their own paths to growth.
The Paper demonstrates that trade and investment are critical for the UK to achieve strong, sustainable and balanced growth in the future.
It makes the case for: open markets and the dangers of protectionism; removing trade and investment barriers and improved market access for UK business within the EU and beyond; helping to conclude the Doha Development Round of trade talks in 2011; working to strengthen the WTO; supporting early conclusion of priority EU FTAs; supporting trade and regional integration in Africa; and working with G20 members towards these goals.
Our most immediate task is to finalise the Doha trade negotiations. This historic agreement, once signed, will boost the world economy by £110 billion. So we must all move quickly to make 2011 the year that the Doha trade talks are finalised. Momentum is building. We will be working on plans and roadmaps to meet this goal.
A result here will benefit us all. Trade is not a game where some countries win and other countries lose: quite the reverse. We all become richer when trade increases. This helps people to pull themselves out of poverty. That is why the UK is also redoubling its efforts to enable developing countries to follow their own paths to growth through trade and investment, and to build the capacity for this, especially in Africa.
We will do all we can to support African leaders to implement their plans outlined in the 1991 Abuja Treaty – to develop Free Trade Areas in each regional economic community (REC) as building blocks for a continent-wide customs union and ultimately an African Economic Community.
We are launching an African Free Trade initiative to help break through trade barriers like bureaucracy and prohibitive tariffs. We will support Africans in making trade in Africa faster and easier, and encourage African entrepreneurs to grow their businesses by opening up access to new markets. We cannot do this alone and we call on international partners to join us in this effort.
We also want to provide greater market access for the poorest. The UK urges all G20 countries to provide 100 per cent Duty Free Quota Free Access to their markets for Least Developed countries. This could increase their exports by over 40 per cent. We call on all countries to join us in pressing for this.
And all of us need to ensure all developing countries can negotiate trade agreements, and that global trade rules reflect needs in all countries, and not just a select few.
Finally, we want to build the networks that help us grow in partnership, and to get behind businesses to support them in trading with the world. British government ministers have embarked on a programme of overseas visits with business delegations for exactly this reason.
We have visited our largest trading partners in the EU, as well as the US, and all partners in the major emerging markets. The business leaders that accompanied us say that this opens a huge number of doors to them for trade and collaboration with businesses in other countries.
Investment is the other side of the coin. The UK is an international hub for investors and currently the world’s third biggest investor, with Maltese firms such as Corinthia Hotels represented here.
We welcome overseas investment. The UK has more European headquarters than any other country, and is one of the easiest places in the world to do business. We plan to remain so by cutting regulation and corporation tax.
So a big challenge is before us. It is to keep building an open global economy and trading system that benefits us all. This will drive growth, jobs, and create wealth around the world. We are confident this is a challenge which the UK, side by side with its international partners, including Malta, is able to meet.
Mr Mitchell is UK International Development Secretary.
Mr Cable is UK Business Secretary.