Since the natural resources and endowments of countries differ international trade is an indispensable means of securing substantial net gains to human welfare. However, successive governments have been blind to the economic harm of running large persistent trade deficits. The habit of importing far more than we export is a form of short-term gratification. It prioritises consumption over production, gradually drains our wealth and leaves a legacy of industrial decay and debt. We must reset the trade balance – Britain’s future depends on it.
POLICY PLEDGES:
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The central structural target of trade policy shall be a reduction in the UK’s trade deficit. Progress and policies against this target will be assessed and adjusted annually.
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The UK will continue to participate in the World Trade Organization (WTO), the Trans Pacific Partnership (TPP) and will respect state aid provisions within the Northern Ireland Protocol as well as the EU-UK Trade and Cooperation Agreement.
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The UK will pursue bilateral trade deals when in the national interest. Trade and industrial policy will support domestic resilience to minimise over-reliance on extended global supply lines and products from hostile regimes and to promote environmental sustainability.
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Trade protection for the UK’s strategic industries will legally but firmly applied under Article XXI of the General Agreement on Tariffs and Trade 1994. Trade and tariff policy will also be used to protect companies in strategically important sectors and to support companies in emerging sectors and technologies.
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Unfair trade – involving imports made with slave or sweatshop labour or that which disregards animal welfare or environmental standards – will be subject to unilateral sanction via import tariffs, quotas or outright bans.
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Tax-advantaged Free Ports will be established with a focus on manufacture for export. As with Special Economic Zones (SEZs), these will be allowed only if local democratic support is secured.
