UK economic diplomacy in the 21st century

The LSE Economic Diplomacy Commission was convened in 2019 to establish a strategic direction for a new age of foreign economic policy, to understand the domestic ramifications of changes to the UK’s trade agenda, and to present recommendations that may best advance the UK’s priorities at home and abroad. The aim of the Report is to position the UK optimally in a changed 21st century global economy while maintaining the UK’s support for an open, multilateral trade and rules-based international system. The Report proposes a refined economic diplomacy framework that seeks to balance commercial openness with strategic domestic and foreign policy aims, broadly defined. Chaired by Professor Linda Yueh, the Commission comprises of 18 Commissioners who are experienced practitioners and leading academics. In evidence sessions held throughout 2020, the Commissioners examined the framework for setting trade and investment policy as well as the UK’s global role – and aligned these with its domestic priorities and foreign policies. The Commission cannot cover every issue in this Report, but the Commissioners have focused on key actionable points of the UK’s foreign economic priorities. These include re-positioning the UK for the continued rise of digital and services trade, contributing to a rules-based international trade and investment order, supporting coalitions to promote global rules and standards, facilitating progress on global public goods, managing the pressures from globalisation and digitalisation, and expanding institutional capacity for the UK’s economic diplomacy.