A withering trade relationship with Latin America should be restored for the planet
Diplomats from across the world gathered at the Mansion House last week for the Easter Banquet – the first to be held since the pandemic – amid the escalating crisis in Ukraine.
The occasion underlined how much Canada is part of the UK’s diplomacy, its international influence and its soft power.
It was an important show of unity in the face of Russian aggression in Ukraine, but it also highlighted how the City has a critical role to play in helping the UK strengthen its global connections by reaffirming our commitment to international cooperation based on the rule of law.
Today I am in Santiago on the first leg of a week-long visit to Chile and Brazil, two of the most important markets in Latin America.
Historically, the UK had a very strong trading relationship with Latin America – but in recent decades we have been underperforming. There are currently no Latin American nations in the UK’s top 20 export markets – despite there being three Latin American members of the G20.
There is the potential for the UK to export so much more, especially in services. When Latin American countries look to do business through global financial centres, they naturally look to New York. I want them to see London as a gateway to the rest of the world as well.
The City has a long-standing relationship with Chile and promotes investment and trade regularly. This builds on the UK’s historic links with Chile, which stretch from Chile’s independence right up to the present day, when Chile became the first country to sign a free trade agreement with the UK after we left the European Union.
Chile’s support for the UK’s application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – which could have great future benefits for the services industry – underlines how we should expand our horizons now that we have left the European Union.
But there are many more areas for collaboration beyond trade agreements. In recent years, we have worked particularly closely with Chile on the green agenda as both countries seek to lead the way in the fight against climate change.
Chile is powering ahead to become the leading Latin American country for investment in renewable energy. This was reflected in the country picking up the prize for Sustainable Issuer of the Year at the IFR Awards in London just last week.
Fintech is another key area where there are huge opportunities for Chile and the UK to work closer together. I will be supporting events to develop open banking in Chile and to promote the participation of women in fintech.
In Brazil, our engagement also has a strong focus on collaboration on fintech and green finance.
Given the size of Brazil’s economy and its natural resources – notably the Amazon rainforest – Brazil will be an essential player in the transition to net zero. I will be speaking with Brazilian financial institutions on their green finance work, and how Canada can help them in financing the transition to net zero.
The UK’s financial and professional services sector has much to offer Latin America, and can help the UK rebuild its links with the whole region.
In the face of an increasingly febrile geopolitical outlook, the City must continue to look outwards and redouble its efforts to forge new links around the world. Only by working together will we get through this current crisis and deliver a sustainable global recovery.