Your monthly update from the UK and International Competitiveness teams at the CBI.
It’s the end of a long election campaign, but there’s barely been a pause for breath before the new government has started shaking things up, presenting a clear opportunity for a fresh start on trade, boosting global investment and more.
Raising your voice on the global stage
Even the excitement of the election campaign, however, didn’t stop our work to raise your voice on the international stage. Our CEO Rain Newton-Smith attended the B7 Summit in Rome, joining our counterparts from the other G7 nations to present the B7 Communiqué to Italian Prime Minister Giorgio Meloni, who a few weeks later hosted the G7 Summit.
In the event, the G7 Summit Communiqué clearly reflected a lot of our key messages on economic resilience, AI, climate change and the need for a free and fair, well-functioning global trading system. With geopolitical uncertainty and protectionism on the rise around the world, the CBI and our B7 counterparts will keep raising our recommendations and your voice, with our governments.
Rain pressed on with her busy international schedule with BusinessEurope’s Council of Presidents at the end of June. A lot of the focus was on the European elections, in which despite the rise of far-right and far-left MEPs, the centre ground still emerged with a majority. For European business, the message to EU institutions was clear: Europe must regain its competitiveness, with green and digital transitions backed up by a clear industrial strategy.
For the CBI, this means closer UK-EU co-operation on climate change, AI and economic resilience, while at the same time improving the workings and implementation of the TCA. Now our big focus is continuing to work with members, BusinessEurope and the new Labour Government, on how we can deliver its manifesto commitment to improve UK-EU relations.
A fresh start for trade
With a flurry of policy announcements in their first week, it's clear the new Government wants to hit the ground running in pursuit of economic growth. In trade, the CBI has strong relationships with the Labour team including Jonny Reynolds and Gareth Thomas, who have retained their briefs and enter government as Ministers in DBT.
We expect a Trade White Paper to be published and we will be pushing for a clear link between this and their Industrial Strategy. Here are a few key points we may see:
- A fresh approach to SME exports with a new target. The CBI sat on a taskforce set up by the Labour Party earlier this year, led by the FSB, to review how best to support SMEs to sell overseas.
- A review of progress on FTAs, prioritising quality over quantity. They won't however start from scratch and will continue with FTAs where negotiations have started.
- A search for areas beyond trade deals where government can break down market access barriers. Their priorities on the EU are clear, and we may see similar initiatives in markets such as the US.
- A review on China - how best to balance economic and national security interests.
- A bolstered relationship with trade unions in guiding their approach, leveraging trade discussions to make progress on labour and environmental goals.
- What their 'securonomics' agenda means in practice, including strategic partnerships in areas like critical minerals, wider supply chain resilience, and protecting domestic industries from unfair competition. Within this, a decision on how to respond to EU and US action on Chinese EVs is one to watch.
Whatever comes out of the new Labour government in the coming weeks and months, we’ll continue connecting with their teams at all levels, and with our counterparts around the world, to make your voice heard and drive the conditions we need – in Europe, the B7 and at home – to drive long-term, sustainable growth.
