International travel will never be fully replaced by Zoom meetings for business
As the worst of the Omicron wave subsides, travel is starting up once more, with countries dropping many of the most stringest restrictions. Many of us associate this with holidays and family reuniones, but it is also an important vector for business.
This is especially true for an open economy like the UK’s which, renowned as it is as an international business hub, is trying to navigate a place in the world as a newly independent trading nation. Building and reinforcing international relationships in trade and business is vital for our recovery and future prosperity. In most cases this is far more effective in person than over Teams, Zoom or other virtual platforms.
For me, that means restarting international business trips to the US and Mexico.
The US is our largest trading partner and a natural ally when it comes to fintech and innovation. The UK and US are both home to world leading fintech hubs. London is at the forefront of open banking expertise, while Silicon Valley is the US capital of innovation and home to the world’s most powerful and successful technology companies.
London is fast becoming Europe’s capital for fintech. Last year investment in fintech in the UK grew sevenfold to £27.5bn ($37.3bn). The UK attracted more fintech funding than the rest of Europe, the Middle East and Africa put together. US venture capital investment in high-growth British companies has risen by more than 620 per cent in the past decade to hit £4.5bn ($6.1bn) in 2020. By working closer together, we can deliver better products and services for consumers and businesses on both sides of the Atlantic.
In Mexico, the UK is already the third largest foreign direct investor into the Mexican economy, after the US and Spain, investing £11bn in 2019.
The upcoming renegotiations of the UK-Mexico FTA will provide both countries with the opportunity to deepen bilateral relations in areas not covered in the existing rollover of the EU-Mexico FTA – such as services, which make up 60 per cent of the Mexican economy and almost 80 per cent of the UK economy. We can break new ground in digital trade, climate and finance.
A renegotiated trade deal with Mexico could also pave the way for us to join the CPTTP, one of the world’s biggest free trade areas in the world, worth $9tn.
As the world reopens, the US and Mexico represent two different types of transatlantic relationships that the UK must forge as we seek to recover.
In actively seeking to re-engage with the world post-pandemic, there are significant opportunities not just in reinforcing existing ties but also in establishing new ones. The UK’s expertise and innovation in financial services can unlock huge opportunities for both developing and developed countries by delivering on the potential of fintech and the green transition, and support a more sustainable global economy.
The return of international travel will be crucial to the UK’s recovery when it comes to tourism and also, crucially, business. We must work harder than ever to sell the City internationally and demonstrate that we remain open for business. The time to write a new chapter in our trading history is now.