UK’s Post-Brexit Economic Diplomacy
Despite the national uproar and instability caused by Brexit, Britain’s foreign relations are still a high priority.
The UK Trade Envoy to Malaysia, Richard Graham, announced a pledge of $3.6 billion to enhance their mutual trade. The funds are made available from UK Export Finance, tallying up the total support offered in recent times to $6.5 billion.
Speaking publicly while visiting the Southeast Asia nation, Graham stated: “I am delighted to announce that the UK government, through UK Export Finance, is increasing financial support available for trade with Malaysia to £5bn, meaning billions of pounds of additional financial support to support UK exporters and their Malaysian buyers.” The move is one of the biggest in Graham’s tenure as UK Trade Envoy to Malaysia since his appointment to the role in January 2016.
What Might it all Mean?
The UK has endured difficulties in recent years. Britain is clearly striving to make a success of the Brexit dealings, despite the heavy struggle involved. British businesses are losing faith and the value of the pound has suffered greatly, as the UK economy at large begins to dip down from the impact of independence. Put simply, allies are needed greatly, after the leave vote has wounded international relations and the economy.
On the other hand, Malaysia have made a success of segregation since 1957, yet nurtures strong business ties with the UK after their long and shared history together. Consequently, some are calling this renewed partnership as exemplary of them both being ‘partners in the post-Brexit world’, moving forward together in prosperity. However, for Britain, it is likely more a matter of survival, an avoidance of burning more bridges after turbulent Brexit negotiations set them back. Ultimately, the British government need to be certain of something positive at this time, and are exploring this avenue accordingly.
A Big Plus for the Economy?
Other than strengthening the bilateral bond between the two nations, Malaysia can expect to have access to a higher quality of goods and services from the UK under more efficient conditions. Not only this, but the proceedings will run with a personal and efficient edge. For example, sourcing from the UK is made smoother for Malaysian buyers, with the ability to access finance in their own currency.
Furthermore, the economy is benefited by this level of cooperation, a quick and slick deal that delivers results immediately on both sides of the arrangement. Malaysian buyers will pump money into Britain and enhance the UK exporters, while their buyers can make calculated and clean investments for high quality goods. Ultimately, companies like London Capital Group track the financial markets and the economy at large, which should paint a reliable picture of the fallout for investors in the future.
Trust in the Trade Envoy?
Doubt has been placed in Richard Graham, the trade envoy for the dealings. Graham previously came under fire for comments about degenerative conditions on independence payments for the disabled, branded as “out of touch” before a speedy clarification. Ultimately, the Conservative MP has been embroiled in multiple controversies that have come under national coverage and scrutiny, and so his place in the proceedings may well throw the whole deal into heated discussion and suspicion. Only time will tell.
Marcus Turner Jones graduated in economics from the University of Sheffield before working in London and Madrid. His particular area of expertise are the Latin American markets. He currently lives in Buenos Aires as a freelance writer and investor, with his dog, Luna.