The Counter to Economic Nationalism is Economic Patriotism

The past five years have seen unprecedented change and disruption in the global trade network. Against this backdrop, the UK stands as a connector, bridging systems, processes, and old and new alliances. Our identity as a trading nation is once again in sharp focus, energised by new opportunities but challenged by global headwinds. Global Britain must now mean something practical: forging relationships, shaping standards, and standing up for the values of trusted trade.

Businesses worldwide face growing uncertainty: about trade relationships; supply networks; shipping routes; and long-established rules of trade and diplomacy. The new administration in Washington has very deliberately set on a path to unpick the global, multilateral administrative system. This is combined with the ongoing war on mainland Europe, conflict in the Middle East, environmental change impacting the Panama Canal and farming production, technological disruption, and the re-shaping of customs and trade regulations. All of which has led many businesses, particularly MSMEs, to pause growth plans and rethink new markets.

Alongside these disruptive forces, we’re also seeing a shift towards economic nationalism, fanned by the pursuit of narrow self-interest, and prohibitive practices. The UK is emerging as an essential counterbalance to these forces. The trade agreements we’ve signed or are negotiating with India, the US, and the EU indicate an alternative to economic nationalism. They position the UK as an open, outward-looking, and collaborative partner.

To make sense of what’s at stake, we have to return to first principles. Free and open trade isn’t just an economic tool, it’s a driver of peace, prosperity, and mutual progress. And all the evidence shows that businesses which trade internationally are more resilient, more sustainable, employ more people, are more innovative, and are more profitable.

The moral case for trusted cross-border trade is clear: history shows trade reduces conflict, promotes diplomacy, spurs innovation, and boosts development. The 19th-century French economist Frédéric Bastiat was clear that “when goods don't cross borders, soldiers will”. More than a billion people have been lifted out of extreme poverty since 1990, much due to the opening up of trade.

But ideals only carry weight if they deliver for society. Fortunately, trade delivers: the more open and accessible markets are, the more consumers, businesses, and communities benefit. Trade’s value to the UK economy cannot be overstated: exports account for around 32% of UK GDP, £881 billion last year, with over 7 million UK employees in roles directly impacted by the movement of goods. Trade has to be treated as the keystone for any economy. The ability to import and export is core to building a sustainable, resilient, and secure economy.

The answer to today’s challenges isn’t to turn inward. It’s to establish a new geo-political framework. A framework that addresses the growing tilt towards self-interested, economic nationalism. It is to adopt policies built on the firm foundations of economic patriotism. Policies which encourage internal investment, the deployment of national assets and resources, and the development of policies and partnerships which work to spark regenerative growth in collaboration with our partners. The recent Mansion House Accord and the UK Government intervention in British Steel align with the principles of economic patriotism. The industrial, trade and small business strategies will hopefully provide greater clarity on the structure of UK economy, trade and regulatory frameworks for the coming years.

British businesses are already showing what’s possible. Flora Food Group exports to over 100 countries and is opening a US factory, proof of UK food and drink’s global reach. Joseph Cheney, crafting shoes since 1886, now navigates a complex global supply chain. Lemberg, a caviar specialist operating across the EU, shows the value of clear, efficient regulation for luxury firms. And AESSEAL manufactures critical mechanical seal technology for industries in over 100 markets. Each of these firms, all members of the Chartered Institute, reflects the bigger truth: that trade is an agent of progress.

The UK has always been an outward-looking, trade-driven economy, encompassing industrial innovation and our Commonwealth partnerships. Our newly independent trade policy is a responsibility as well as a freedom. The progress being made with India, the US, CPTPP, the Gulf states, and our improving ties with Europe all point to a huge potential for the UK, our businesses, and our communities across our nations and regions.

This is our chance to champion a model of trade that’s open, responsible, and inclusive. But we stand at a crossroads – the world can fragment, or it can build bridges. Trusted trade and collaboration are how we grow sustainably and leave no one behind.

To address today’s biggest challenges, we must take down barriers and support trusted trade. At the Chartered Institute, our mission is to do just that, and to counter economic nationalism through economic patriotism. When supply chains are stable and partners are predictable, everyone benefits – from factory floor to end customer.

Trade is not an abstract concept, and it isn’t just a part of our economy – trade is what enables humanity to grow.

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