In a customs union with the EU, the UK could pursue reforms in services liberalisation, Aid for Trade, investment promotion, labour standards and bilateral trade agreements, while maintaining EU tariffs on goods imports. This may be its best trade-for-development strategy after Brexit.
CGD Policy Blogs
There is an industrial revolution underway in sub-Saharan Africa’s most entrepreneurial economies.
Last week, the British Parliament rejected the Prime Minister’s EU Withdrawal Agreement by a resounding 432 votes to 202, making the odds of a no-deal Brexit greater than ever. Having survived a motion of no-confidence, the government now has fewer than 70 days to devise an alternative exit plan that MPs will support. If it fails, then under Article 50, the UK will leave the EU without an agreement on 29 March.
Rumours have re-surfaced—perhaps as a result of Treasury kite-flying—that the Government is considering merging its international-facing Departments as part of the coming spending review. We’ve argued in the past that the best approach to development policy is through an integrated approach to aid, trade and foreign policy. But merging DFID into the FCO at this time would be likely to diminish the UK’s global influence, damage its development effectiveness, and work against the idea of Global Britain.
Kimberly Ann Elliott responds to rumors that the US is considering kicking several Central American countries out of a trade agreement and explains why a fear motivating the move—that China might gain backdoor access to the American market—is unfounded.
As the global trade powerhouses lurch towards protectionism, CGD’s Commitment to Development Index, released today, reveals which advanced economies have trade policies that support—or fail to support—lower-income countries.
Today, we published the Commitment to Development Index (CDI) 2018, which ranks 27 of the world’s richest countries on how well their policies help the more than five billion people living in poorer countries. European countries dominate this year’s CDI, occupying the top 12 positions in the Index and with Sweden claiming the #1 spot. Here, we look at what these countries are doing particularly well in the past year to support the world’s poor, and where European leaders can still learn from others.
Prime Minister Theresa May's recent speech in Cape Town may herald an inspiring new Africa-UK development partnership—but only if she can put that vision into action. Ian Mitchell and Hannah Timmis offer lessons from China, France, and the EU.
Basel III & Unintended Consequences for Emerging Markets and Developing Economies - Part 2: Effects on Trade Finance
Just as Basel III, among other factors, played a role in the decline in the volume of cross-border lending from advanced economies to EMDEs, it created incentives for a shift in the composition of these flows. Banks’ exposures to certain business lines have been affected, including those that are crucial for development like trade finance and infrastructure finance (the latter will be the subject of a future blog).
Engaging Young Africans on Four Immediate Challenges on the Road to Sub-Saharan Africa’s Continental Free Trade Area and “Agenda 2063”
As at countless events on sub-Saharan Africa’s economy over the past two weeks, discussions at Harvard University’s “Africa Development Conference”—where I delivered a keynote address—were animated by the signing of the Continental Free Trade Area (CFTA) agreement by 44 sub-Saharan African countries two days before.