What a Labour government means for US, EU, China relations

LONDON — The incoming U.K. government will confront a complex international landscape after Britons head to the polls on July 4.

Labour leader Keir Starmer is widely expected to lead his party to victory, pledging to kickstart a “decade of national renewal,” following 14 years of rule under the Conservative Party.

But the centre-left politician will also be seeking to redefine the U.K.’s international image in the wake of Brexit, a recent spat of domestic political and economic blunders, and a more fractured global landscape. CNBC takes a look at the foreign policy priorities for the incoming government.

High on the new government’s agenda will be navigating sensitive ties between global superpowers and geopolitical rivals, the U.S. and China.

Labour will be eager to maintain Britain’s so-called “special relationship” with its transatlantic ally, presenting a united front in areas of shared strategic interest. But it will also need to adapt to a more protectionist and likely unpredictable U.S., particularly in the event of a change in leadership following the November presidential elections stateside.

“You could imagine that the relationship between the incoming personalities of Keir Starmer and Donald Trump would be awkward,” David Dunn, professor of international politics at the University of Birmingham, told CNBC over the phone. “But they will work together.”

Progress on a U.K.-U.S. free trade deal — one of the key pledges of the Brexit campaign — is also likely to be limited, given current interest from both the Republican and Democrat administrations. Britain could instead be expected to focus on certain “sector agreements” and to continue partnerships on military and critical technologies, Chatham House directors Bronwen Maddox and Olivia O’Sullivan said in a May note.

Faced with a more assertive China, Labour is likely to continue the U.K.’s current position of “deliberate strategic ambiguity,” Dunn said, mindful of the country’s economic ties to Beijing even amid geopolitical and national security concerns. Labour ministers — like Tories — met with Chinese-founded fast fashion giant ahead of a potential London listing despite disputes over its human rights record.

“Britain is in a remarkably ambiguous position — as is the EU — dependent on China, but also concerned about territorial acquisition and regional threats,” Dunn said.

Labour is also likely to foster a closer working relationship with the European Union.

Starmer, who campaigned for the Remain movement not to depart the bloc in the U.K.’s 2016…