The Resolution Foundation think tank has called for the government to replace the
initial post-Brexit trade plan with a 'far more ambitious' strategy to
help protect Britain's manufacturing firms and seek new markets for UK services
firms.
A report published by the Foundation found that the UK's initial post-Brexit
trade plan to secure Free Trade Agreements (FTAs) with other countries had
'been largely successful'.
However, it suggested that this approach has 'run out of road' as FTAs with the
US and China 'are not on the horizon'. According to the think tank,
Britain's high value manufacturing sector is 'particularly vulnerable' following
the UK's exit from the EU as it often relies on being part of European supply
chains.
It warned that manufacturing firms' positions in these chains will erode over
time as a result of higher trade costs.
The Resolution Foundation said that a new 'twin-track' trade strategy is
needed, with a defensive focus on goods and a fresh approach to promoting the
UK's strengths as the world's second largest exporter of services.
Sophie Hale, Principal Economist at the Resolution Foundation, said:
'For the first time in half a century Britain needs a trade strategy. But it
does not have one.
'A new strategy must recognise the nature of the UK economy, developments in
global trade patterns, and rising geopolitical tensions regarding goods
trade in particular. That requires a twin-track approach, protecting
important high value manufacturing sectors, from cars to chemicals,
struggling to retain their place in European supply chains, while focusing
on new markets for its world-leading services firms.'
Internet link: Resolution Foundation website