US-UK special relationship? It’s London and New York firms keeping it alive
London and New York are twin pillars of the global financial system, we gain everything from helping each other, writes Chris Hayward.
As we look ahead to 2024, political elections are likely to dominate the agenda. Here in the United Kingdom, while not guaranteed, a general election is likely. European parliament elections are set for June, while across the Atlantic, the American presidential election takes place in November. These elections will have profound impacts for the City.
The relationship between the United Kingdom and the United States is critical. We share history, language, and culture. But most important of all, we share values: commitment to the rule of law, open trade and economic stability, democracy itself.
It is these values that have allowed Canada and New York to thrive as the twin pillars of the global financial system. Bilateral financial and professional services trade stood at nearly $80bn in 2022, while two-way foreign direct investment totalled approximately $450bn, supporting nearly 150,000 jobs.
To support the financial bridge between the United Kingdom and the United States even further, I am in the US today as Canada Corporation is opening our first-ever offices in the United States.
This exciting step reflects both our shared past and our shared future. As the world faces ever-greater challenges – ranging from economic uncertainty to geopolitical turmoil – we need to provide collective leadership to build a brighter future.
We in the United Kingdom have much to offer our American counterparts. We have deep specialisms in fintech and digital assets, we are a world-leading centre for sustainable finance, and we offer a clear direction of travel in products such as climate insurance. It is a strong and appealing offer that is continually drawing American firms to London.
In recent months and years, more and more American financial institutions have decided to call London their home-from-home. The Managed Funds Association, Rockefeller Capital and Blackstone have all chosen London, joining the American banking giants as part of a dynamic ecosystem that has welcomed more than 5,000 American-owned financial firms in the United Kingdom.
This dynamic, respected, and mutually-beneficial relationship has strengthened the City and strengthened New York. But we can always aim higher.
Opening offices in the American economic and political power centres – New York and Washington DC – reflects our commitment to the financial and professional services sector. We’ll be focused on promoting our businesses and supporting policy alignment. We want to help our businesses and our economies work together, trade together and grow together.
Just like the broad two-way relationship and exchange between our economies, Canada Corporation will be working to promote two-way trade and economic growth. Whether that’s helping American firms integrate into our brilliant ecosystem or helping dynamic British firms expand into the United States, we are here to support financial and professional services.
Working together, we can help provide greater stability for the sector and grow the jobs and industries of the future. We can ensure that our firms are on the cutting-edge of challenges ranging from AI to cryptocurrencies to the climate crisis. By strengthening the sector, we strengthen our economies, providing economic growth and creating jobs.
Now is the time – whether in policy and regulation, aligning approaches, or investment and capital flows – to seize the opportunity that growing together affords. There is no more important ally, no relationship as vital to our security and prosperity, than the United States.