NEW DELHI: The Commonwealth plans to try and push intra-commonwealth trade to $ 2 trillion over the next ten years from an estimated $ 700 billion in this calendar year.
India which does about $ 104 billion of trade with other commonwealth nations, could if it manages to retain the same share of trade, manage to yank this to nearly $ 300 billion by 2030.
The Commonwealth Secretary-general Baroness Patricia Scotland who is trying to push the trade agenda within the 53-member association told the Express in an interview “There are significant opportunities (in increasing intra-commonwealth trade) now not just because of Brexit, but because of opportunity that were inherent, always in our commonwealth family.”
Many analysts believe that with Britain opting out of the European Union, there would be a number of trade deals between UK and Commonwealth powerhouses such as India, Australia, Canada and South Africa. A move which will also give other Commonwealth countries a chance to improve their trade with both Britain and the European Union.
“We already have a de facto if not de jure trading relationship which is free-flowing” pointed out Baroness Scotland. Studies show that a common language for business, similar laws and practices besides other factors give Commonwealth nations a 19 per cent advantage in doing business with other Commonwealth nations.
India exports some $50.15 billion worth of goods or more than 19 per cent of its exports to Commonwealth nations. It also imports some $ 54.66 billion worth of goods or 15.32 per cent of all imports from commonwealth nations.
Nigeria, Malaysia, Australia, Singapore and the UK are among top exporters to India from the Commonwealth, while India’s top 5 export destinations within the Commonwealth are UK, Singapore, Bangladesh, Malaysia and Singapore.
The Secretary-General points out the similarities “adds up to a trade advantage”. Agrees Indian diplomats who say it does help. “In Africa, we have found the going easier in the Commonwealth states and tougher in French-speaking countries, because of the language, the business practices and the laws which work to our advantage in countries which are part of the Commonwealth,” said officials.
Over the next few years the Commonwealth will work hard to study the barriers which impede trade between Commonwealth countries and try to bring them down in a bid to meet the target of $ 2 trillion dollars in intra-commonwealth trade, says the Secretary-General. However, with each Commonwealth nation perusing its own raft of regional and bilateral trade treaties – such as India, Australia and New Zealand opting for the RCEP, African Commonwealth nations its own continental trading pact, the possibility of a pan-commonwealth trading compact seem bleak say observers.
Said Prof Biswajit Dhar of the JNU and a Member of the Board of Trade “the pulls of regional trading arrangements and the huge distances between Commonwealth nations means that a trading compact between all Commonwealth nations is tough, however, their similarities of language, law, codes of business ethics etc., also means their businessmen would gravitate towards each other.