Shared Values
The Commonwealth is built on shared values and supported by historical, cultural and sporting links. Research has found that the combination of these factors offers substantial benefits to trade and investment through the similarities in business, commercial and legislative practices, ultimately making it 21% cheaper to do business across the Commonwealth.
We call this the “Commonwealth Advantage”.
What is the Commonwealth Advantage?
The Commonwealth is not a formalised economic bloc – but it still provides economic benefits for its members. On average, Commonwealth member states trade 20 percent more with one another than with non-Commonwealth equivalent countries, at a 21 percent lower cost. To some extent, this is the result of existing historical, legal, and commercial ties. Many Commonwealth member states operate a common law system, while most Commonwealth states use English as a commercial and administrative language. These institutional and cultural similarities reduce trading costs, sidestepping the need for translators and expensive legal advisors.
But it isn’t just about cultural links. Commonwealth economies tend to be more open, imposing fewer tariffs and fewer non-tariff barriers than their neighbours. This combination of criss-crossed connections and openness to trade means that the Commonwealth is a great place to start and grow a business – and it means that Commonwealth nations are well-suited to mutual trade and investment.
Key Statistics
People
The Commonwealth has a 2.7 billion population of which 60 per cent are under 30 years old. It represents a billion middle-class consumers.
Economy
The combined gross domestic product of Commonwealth countries is predicted to reach US$17.7 trillion in 2027. The Commonwealth represents 40% of the global workforce and half of the top 20 global emerging cities.
Ease of Doing Business
The Commonwealth is an association of 56 countries with well-established trading relationships with partners that share a common language, democratic principles and rule of law. Bilateral costs for trading partners in Commonwealth countries are on average 21 percent less.
Climate Change & Sustainability
31 of the Commonwealth’s members are small states, and 23 are Small Island Developing States (SIDS), which are among the most vulnerable to the impact of climate change or developmental challenges. The Commonwealth is an advocate for change, giving each state an equal voice.