UK election results – Implications for International Trade and Investment

UK election results – Implications for International Trade and Investment

Press releases | 09 July 2024

Commenting on the implications of the UK election results for international trade, Hogan Lovells partner Aline Doussin said: 

“At the heart of Labour’s foreign policy commitments is a strong emphasis on growing the UK economy and attracting foreign direct investment. This includes 'resetting' relations with the EU and strengthening ties with European partners. However, they have made it clear that rejoining the Union, the single market, the customs union, or reinstating freedom of movement are not a part of their strategy. It is therefore unclear at this stage how much the EU and the UK could negotiate outside these parameters, and whether the new Commission and the newly elected European Parliament will have any appetite to re-open talks. 

“Beyond the EU, Labour is carefully addressing the UK’s trade relationship with China. They have announced their willingness to first conduct a comprehensive audit of the UK’s relationship with China, within the first 100 days of taking office, in order to develop a long-term, strategic approach, moving away from what they describe as “the Conservatives’ damaging inconsistency”. They have also articulated a clear intention to maintain a robust relationship with the U.S., regardless of the upcoming U.S. election results. Doing so is deemed essential for both security and prosperity, and for any prospect of strengthening transatlantic trade ties.

“National security is – unsurprisingly – a top priority for the new Labour Government. They have pledged to conduct a Strategic Defence Review within their first year, in order to set a foundation for achieving 2.5% of GDP on defence spending. Adopting a slightly different tone to previous Labour leadership, they have expressed unwavering support for the nuclear deterrent and the AUKUS alliance, highlighting their aims at maximising both economic and security potential. Furthermore, Labour’s intention to establish a new security agreement with the EU for real-time intelligence sharing, demonstrates a proactive approach to international security collaboration.”

To stay up to date with the latest insights on the key elections taking place in 2024 around the globe, please visit the Hogan Lovells Elections Hub.