Don’t miss the latest developments in business and finance.

Minister Swire against UK leaving EU

Image
ANI London
Last Updated : May 27 2016 | 2:28 PM IST

Putting forth his views against the United Kingdom leaving the European Union in the June 23 referendum, Minister of State for Foreign and Commonwealth Office Hugo Swire has said Brexit would not advance the UK-India relationship.

Swire quoted Indian Prime Minister Narendra Modi's assertion during his visit to the UK last November to justify his stand.

"India too sees this gateway role as vital. Prime Minister Modi during his visit to the UK last November said "As far as India is concerned, if there is an entry point for us to the European Union that is the UK"," Swire said.

"And the head of the Federation of Indian Chambers of Commerce and Industry agreed, adding that: "we firmly believe that leaving the EU would create considerable uncertainty for Indian businesses engaged with the UK and would possibly have an adverse impact on investment and movement of professionals to the UK"," he said.

Swire, who was delivering a speech on EU and the Commonwealth at Chatham House on UK's relationship with the EU and the Commonwealth on Wednesday, said free trade is the engine of global growth - and that a rising tide lifts all ships.

"But it is quite wrong to suggest that Commonwealth trade might be a substitute for the EU Single Market. Like our membership of the two organisations, trade with the Commonwealth is complementary and not a replacement," he added.

More From This Section

Swire said the UK's seat at the EU table gives the Commonwealth a voice, adding it is a voice which brings results.

"So rather than consider how the Commonwealth might benefit from Brexit, we should remind ourselves why the Commonwealth benefits from our close relationship with the EU," Swire said.

"UK membership of the EU is creating jobs and driving growth, in Britain and across the Commonwealth. That's why our Commonwealth allies want us to stay in the EU," he added.

The UK Minister said that a host of Commonwealth leaders have come out and said so.

"Canada's Prime Minister Trudeau said that Britain's clout is "obviously amplified by its strength as part of the EU". New Zealand Prime Minister John Key said: "We see Europe as an extremely important continent that needs strong leadership. We think Britain provides that leadership"," said Swire.

"His Australian counterpart Malcolm Turnbull said: "Britain's involvement in the European Union does provide us - and Australian firms particularly, many of whom are based in the UK - considerable access to that market. From our point of view it is an unalloyed plus for Britain to remain in the EU"," he added.

Swire said the UK has been at the forefront of efforts to deepen the EU's trading relationships with Commonwealth countries.

"The UK was instrumental in getting the Commission's agreement to begin negotiations on FTAs with Australia and New Zealand. We continue to push for an ambitious Free Trade Agreement with India," said Swire.

"And the UK has consistently advocated a pro-development trade policy, arguing for generous market access to the EU market for developing countries in the Commonwealth and beyond," he added.

The UK Minister said the benefits of this trade for Commonwealth countries are significant.

"The UK strongly supporting the granting of GSP+ status to Pakistan - which reduces duty on exports in exchange for progress on governance and human rights; Pakistan's exports to the EU rose by 20 percent in the first year of this scheme," he added.

Swire further said the UK is working with the EU partners to successfully conclude economic partnership agreement negotiations in West Africa and with the East African and South African Development Communities.

"The EU is Ghana's 2nd largest trading partner after China. And in South Africa the EU accounts for a quarter of total exports, and its largest foreign direct investor, with 2000 EU firms credited with creating 3,50,000 jobs," he added.

Withdrawal of the United Kingdom from the European Union, often shortened to Brexit, is a political aim of some advocacy groups, individuals and political parties in the UK. The British electorate will address the question again on June23, 2016, in a referendum on the country's membership, following the passage of the European Union Referendum Act 2015.

Also Read

First Published: May 27 2016 | 1:48 PM IST

Next Story