Saturday, 10 June 2023

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UK seeks to revive post-Brexit trade links with Latin America

UK seeks to revive post-Brexit trade links with Latin America

The UK hopes its accession to an Asia-Pacific trade treaty will open markets for British business in Latin America, part of a wider effort to revive links with a region long neglected by London.

Concluding a trip to Colombia, Chile and Brazil, foreign secretary James Cleverly said trade levels with Brazil’s $2.1tn economy were “not as high as they should be”, partly because of a lack of mutual understanding.

“With some British businesses, they don’t think of Latin America,” he told the Financial Times. “We need to make sure that . . . this is a region which is on the shopping list of British businesses.”

Although it has a population of 664mn people. Cleverly noted in a speech in Santiago, Chile, that Latin America accounted for just 2 per cent of UK imports and 2.5 per cent of exports. “I recognise that there is much more to do,” he said. “We should be ambitious for our future relationship.”

Part of the government’s answer is the Comprehensive Trans-Pacific Partnership. The UK completed negotiations in March to join the pact, which groups Asian powerhouses such as Japan and Vietnam as well as Pacific nations including Chile, Peru and Mexico. Costa Rica, Ecuador and Uruguay have also applied to join.

However, the UK faces an uphill struggle competing with China, whose voracious appetite for food and critical minerals during the past two decades has made it South America’s biggest trading partner.

Chinese companies have been buying up lithium and copper mines across the region, as well as much of the soy and meat produced by Brazil and Argentina.

Asked whether he had announced any business or investment deals during his visit, Cleverly said his trip was “not a simple short-term transactional thing” but was “about reinforcing a serious, really important long-term bilateral relationship”.

He also highlighted his journey to the Amazon rainforest to visit a scientific project and his signing of a climate partnership agreement with Brazil, building on £80mn of funding to help combat deforestation announced this month by UK prime minister Rishi Sunak. 

Cleverly’s week-long visit was the first by a UK foreign secretary in five years but it skirted Argentina, South America’s second-biggest economy, where a long-running dispute over British sovereignty of the Falkland Islands continues to sour relations.

Jeremy Browne, chief executive of the Latin America forum Canning House, said that Cleverly deserved credit for…

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