With Sir Keir Starmer’s Labour Party having won the 2024 general election in a landslide victory, what could this mean for international trade?
In this blog, we take a look at the key points from Labour’s manifesto which should give us a good idea as to what lies ahead.
Rebuilding EU relationship
The manifesto pledges to keep the UK out of the EU, its customs union and its single market. It does, however, state that the Labour Party will “make Brexit work” by seeking to “improve the UK’s trade and investment relationship with the EU by tearing down unnecessary barriers to trade”.
An example of this is Labour’s plan to negotiate a veterinary agreement to ease border checks and secure mutual recognition of professional qualifications.
New trade agreements
Labour plans to negotiate new trade agreements, including a strategic partnership with India, covering free trade and deeper cooperation in areas like security, education, technology, and climate change. They also intend to pursue standalone sector deals, such as for digital services, to promote UK exports.
Defence sector
Another of Labour’s export priorities is the exploration of trade opportunities within the defence sector. To capitalise on these opportunities, Labour emphasises the importance of ensuring resilient supply chains. The manifesto states:
“We will ensure a strong defence sector and resilient supply chains, including steel, across the whole of the UK. We will establish long-term partnerships between business and government, promote innovation, and improve resilience.”
The manifesto also explicitly highlights export opportunities in the defence sector, emphasising that these must be conducted in compliance with international law:
“We will prioritise UK businesses for defence investment and will reform procurement to reduce waste. Labour will support industry to benefit from export opportunities, in line with a robust arms export regime committed to upholding international law.”
Net-zero
The Labour Party’s manifesto outlined a comprehensive plan to achieve net zero by 2050, with a major focus on making the UK a “clean energy superpower” by 2030.
A key feature of Labour’s manifesto is the establishment of Great British Energy, a new publicly-owned clean energy company designed to drive investment in renewable energy technologies. This initiative is bolstered by an £8.3 billion government investment.
Labour has set ambitious clean energy targets, aiming to “double onshore wind, triple solar power, and quadruple offshore wind by 2030.” Furthermore, they plan to invest in carbon capture and storage, hydrogen, and marine energy, which are crucial for developing the UK’s long-term energy storage infrastructure.
An essential part of this strategy is Labour’s commitment to lifting the effective ban on new onshore wind developments. By reforming planning regulations, the party aims to more than double onshore wind capacity to 35GW by 2030.
With Sir Keir Starmer’s Labour Party winning the 2024 general election, the future of international trade could see significant changes. Here at Mosaic International, we will be keeping a close eye on any developments surrounding international trade.
If you would like any help on understanding what the new Labour government could mean for your business, please contact Kiley Tan at 07885 784783 or via email at kiley.tan@mosaicint.co.uk for expert advice and support.