Imperial Ties and Free Trade

Abstract

Popular perceptions of the UK as a free-trading country do not stand up to scrutiny. Investment, both from the UK overseas but inward investment too, are more important for the UK than any comparable economy. This influenced trade and meant that the UK was slower than other large European economies to respond to new opportunities in fast growing economies in North East Asia as it continued to rely heavily on old contacts for trade. Meanwhile it sought to disengage from its old security obligations in the region and, far from being open to free trade, was seen by some of the region’s economies as protectionist.