“We’re not going to get dragged into this war. It is not our war,” Starmer told parliament, adding that participation would not serve Britain’s national interest.Trump, speaking in a phone interview with Sky News, said he could alter an agreement limiting the impact of U.S. tariffs on Britain, signaling potential economic consequences for London’s stance.

He also criticized the UK’s level of support during U.S. military operations.Tensions have risen between the allies after Britain declined to allow its bases to be used for initial U.S. strikes on Iran last month.

London later approved a request for the use of two bases for what officials described as a “specific and limited defensive purpose.”Starmer emphasized the resilience of the bilateral relationship, referencing the planned state visit of King Charles III to the United States and stating that ties between the two countries extend beyond individual leaders.

Trump said disagreements would not affect the royal visit but reiterated criticism of Britain’s position. “When we needed them, they were not there,” he said.The dispute reflects a broader hardening in tone from Starmer’s government toward Washington.

Finance Minister Rachel Reeves criticized the U.S. decision to launch military action against Iran as lacking a clear exit strategy, while Health Minister Wes Streeting described Trump’s rhetoric as “incendiary” and “provocative.”

Reeves was scheduled to meet U.S. Treasury Secretary Scott Bessent in Washington on Wednesday on the sidelines of International Monetary Fund meetings to discuss the economic implications of the conflict.

Amid global economic uncertainty and renewed tensions in the U.S.-China trade landscape, New Zealand is turning challenges into opportunities by deepening regional trade partnerships, advancing climate commitments, and strengthening cooperation with Pacific and global allies.

Speaking after high-level discussions at the International Monetary Fund (IMF) and World Bank annual meetings in Washington, Willis expressed optimism that small but agile economies like New Zealand can continue to thrive by building stronger relationships within the Asia-Pacific and beyond.

“We are seeing continued interest from our partners to expand and strengthen trade cooperation,” Willis said. “Rather than retreating into protectionism, there’s a shared determination to maintain open and resilient trade systems.”

New Zealand is a proud member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a landmark trade pact connecting 11 nations, including Japan, Canada, and the United Kingdom.

The country has also welcomed the European Union’s growing interest in deepening ties with the group, signaling a widening network of cooperation that could enhance access to global markets.

Willis noted that a separate trade deal with the United Arab Emirates also holds strong potential for mutual growth and innovation. These initiatives underscore New Zealand’s focus on building stable and forward-looking economic relationships, especially as global markets face disruptions stemming from the ongoing U.S.-China trade tensions.

While some economies have responded to global volatility by raising tariffs and tightening trade rules, Willis highlighted that most nations remain committed to open trade. According to global trade officials, nearly 72% of global trade flows continue to operate under existing rules, reflecting resilience and stability in the international system.

New Zealand’s approach, Willis added, balances economic pragmatism with environmental responsibility. The government remains steadfast in its climate action goals under the Paris Agreement, ensuring that economic progress does not come at the cost of sustainability.

“We consider the risk of more extreme climatic events as a serious challenge, especially for our Pacific neighbors and small island nations who face heightened vulnerabilities,” she said. “This is why New Zealand continues to integrate climate action into its economic and trade strategies.”

Climate-conscious trade policies are also becoming a commercial advantage. Consumers across the globe, including in the United States and Europe, are increasingly mindful of sustainability and the emissions profiles of exporting nations. Willis emphasized that maintaining New Zealand’s reputation for clean, green, and ethical production offers both an environmental and economic edge.

Existing trade frameworks, such as the EU-New Zealand Free Trade Agreement, include provisions requiring adherence to climate pledges. “These are not just environmental obligations,” Willis said, “but also economic opportunities that align with global consumer demand and investor confidence.”

On the geopolitical front, New Zealand continues to play a constructive role in global and regional security networks. As part of the Five Eyes alliance alongside Australia, the United States, the United Kingdom, and Canada, New Zealand is enhancing its defense cooperation to address emerging strategic challenges.

“Our increased defense spending reflects a responsible approach to ensuring regional stability and maintaining peace in the Indo-Pacific,” Willis explained.

Despite global headwinds, New Zealand’s financial outlook remains positive. The nation’s strong institutional framework, diversified trade portfolio, and commitment to sustainable development continue to attract investor confidence.

As global economies navigate an era of uncertainty, New Zealand’s message is clear — collaboration, openness, and sustainability form the foundation of long-term growth.

“We are optimistic,” Willis concluded. “By working together with our partners and staying true to our climate and trade commitments, New Zealand is not just adapting to global change — we are helping shape a more resilient and inclusive future for our region.”

In a message that resonates far beyond Britain’s borders, Bank of England Governor Andrew Bailey has urged global leaders to view Brexit as a lesson in the value of open markets, adaptability, and economic resilience.

Speaking in Washington, Bailey highlighted the world’s capacity to rebuild stronger through collaboration and innovation.

Brexit, often portrayed as a cautionary tale of economic disruption, is now being framed as an opportunity for the world to learn about resilience, adaptation, and the importance of international cooperation

. Bank of England Governor Andrew Bailey, speaking at the Group of Thirty meeting in Washington, offered a constructive perspective on the United Kingdom’s post-Brexit economic path, emphasizing that while challenges remain, the long-term trajectory could foster innovation, self-reliance, and renewed global partnerships.

Bailey acknowledged that the aftermath of the 2016 referendum to leave the European Union brought a period of adjustment for Britain’s trade and regulatory landscape.

However, he noted that such transitions are part of the natural evolution of modern economies. “If you ask me what the impact is on economic growth, the answer is that for the foreseeable future it is negative, but over longer horizons, there should be a positive, albeit partial, counterbalance,” he said.

The governor’s comments were made during the annual meetings of the International Monetary Fund, where central bankers and finance ministers discussed global trade tensions and the economic impact of tariffs.

Bailey’s message stood out as a thoughtful reflection on how nations can emerge stronger from periods of change if they embrace innovation, adaptability, and collaboration.

A Lesson in Economic Adaptation

Bailey stressed that Brexit’s true significance lies not in its immediate economic cost but in the broader lesson it offers about adaptability in a shifting global landscape.

“Make an economy less open and it will restrict growth,” he said. “Though over a longer time, trade will adjust and rebuild. And this appears to be what has happened.”

This observation mirrors the experiences of several economies that have faced similar transitions. Businesses, though initially constrained by trade frictions, have diversified supply chains, explored new markets, and reimagined trade strategies

. In the United Kingdom, many firms have pivoted towards technology, sustainability, and regional trade agreements, reflecting a shift toward greater economic independence.

While Bailey acknowledged that the British government’s Office for Budget Responsibility estimates Brexit could reduce Britain’s long-term productivity by around 4%, he also noted that such figures do not account for future gains driven by innovation, global partnerships, and new trade frameworks.

Britain’s expanding engagement with Commonwealth nations, the Indo-Pacific region, and emerging markets demonstrates how diversification can yield fresh opportunities beyond Europe.

The Bank of England governor pointed out that the current slowdown in global trade should not deter policymakers from pursuing openness and cooperation.

Instead, he encouraged nations to invest in productivity, technology, and sustainable development. “The same argument holds for the world economy and tariffs,” Bailey added. “Protectionism may appear to offer short-term relief, but long-term growth relies on openness and trust.”

Global Implications and Economic Cooperation

Bailey’s remarks come at a time when protectionist policies and trade barriers are re-emerging in various parts of the world. The governor’s comments serve as a timely reminder that economic fragmentation can hinder progress. His call for cooperation echoed throughout the IMF meetings, where delegates discussed strengthening global supply chains, addressing debt challenges, and ensuring inclusive growth.

For emerging economies, Bailey’s insights are particularly relevant. The United Kingdom’s ability to adapt to post-Brexit realities underscores the potential for resilience and reinvention in other nations facing structural transitions.

By fostering transparency, investment in innovation, and cross-border collaboration, economies can turn disruption into a foundation for sustainable growth.

The Future of Growth and Technology

In addition to trade, Bailey touched upon broader global challenges, including ageing populations and the slowdown in technological diffusion. He emphasized that governments must ensure that advances in artificial intelligence, green energy, and digital finance translate into tangible improvements in living standards. “Technology must not only increase productivity but also inclusivity,” he stated.

The remarks highlight a growing consensus among global policymakers: the path to economic stability lies not in isolation but in connection — linking innovation with social and global progress.

Andrew Bailey’s reflections on Brexit go beyond a national narrative. They serve as a global lesson in perseverance and transformation. While acknowledging short-term difficulties, his outlook is rooted in the belief that economies evolve through openness, cooperation, and strategic adaptation.

For the world, Brexit stands as both a warning and an inspiration — a reminder that while trade barriers may hinder immediate growth, resilience and innovation can rebuild stronger foundations. As Bailey concluded, “The story of Brexit is not merely about separation; it’s about rediscovery — of what nations can achieve when they reimagine their role in the global economy.”