THE EXPORT REVOLUTION
For first time since the 1970s, Britain sells more goods to countries outside EU than those inside
BRITAIN is exporting more goods to countries outside the European Union than those inside it for the first time since we joined the Common Market in the 1970s.
Firms are entering growing markets in Asia and Latin America in what economists are hailing as a ‘revolution in the orientation of British trade’.
The shift will cheer the Coalition, which has made great efforts to boost international trade – with David Cameron, Vince Cable and William Hague all touring emerging economies to try to forge profitable links.
The figures will also be welcomed by Tory Eurosceptics as a sign that a looser relationship with the EU would not disadvantage the UK.
According to a report by the Centre for Economics and Business Research (CEBR), the UK has exported more goods to non-EU countries over the past three months than it did to its traditional main export market in Europe.
Over the period, some 51 per cent of British exports went outside the EU – a rise of 13.2 per cent compared with the same time last year.
Meanwhile, exports to within the EU fell by 7.3 per cent.
Scott Corfe, of CEBR, said: ‘Exports of services, which are arguably more important for the UK economy, have always been more heavily based on the non–EU markets.
‘But in the last three months a revolution in the orientation of British trade has taken place, with non-EU exports of goods exceeding EU exports of goods by 1.5 per cent. This is the first three month period for which this has been so since the 1970s, we believe.’
Exchequer Secretary Chloe Smith said: ‘The Government is working hard to drive export-led growth and make progress in emerging markets.
‘These numbers are an indication that Britain can earn its way in the world and, coming soon after the news that the UK is a net exporter of cars for the first time since the 1970s, is positive news amidst the turbulence in the eurozone.’
British trade shifted away from the former colonies to Europe as trade barriers came down after the war. And trade to Europe increased when Britain joined the then Common Market on January 1, 1973. But with the eurozone mired in recession, exports to fast-growing non-EU economies are soaring.
The value of exports to China was 26.3 per cent higher in the three months to the end of May than it
‘EU navel-gazing
distracts us’
was in the same period last year – though China still only accounts for 3 per cent of total UK exports.
Exports to Hong Kong were up 14.9 per cent and sales of goods to Japan rose 5.2 per cent.
In contrast, exports to Italy fell 19.8 per cent, those to Spain fell 9.2 per cent and those to France fell 9.1 per cent. Sales to Ireland dropped 5.3 per cent and exports to Germany – Europe’s biggest economy – were down 2.3 per cent.
Conservative MP Dominic Raab said: ‘ The European market accounts for less than half of UK exports and less than a sixth of our national income.
‘As this research highlights, Britain’s future trading opportunities lie with the rising economies of Asia and Latin America.
‘There is a real risk that insular EU navel-gazing distracts us from the global outlook that we need to deliver jobs, investment and business opportunities in the future.’
A poll of 2,000 businesses by the British Chambers of Commerce found that most firms – some 85 per cent – do not want further EU integration. The survey found that only 12 per cent wanted to leave the EU altogether. But almost half – 47 per cent – want to negotiate a looser relationship and only 9 per cent of want further integration.
John Longworth, director general of the BCC, said: ‘Both the Government and the Opposition should carefully consider how we can get a single market that works for business while ensuring that legislation from Brussels doesn’t damage our economic prospects.’
Business Secretary Vince Cable said: ‘As our closest neighbour and the world’s largest single market, Europe will always be a key trading partner and being successful there is central to our economic recovery.’
IN the depths of economic gloom comes a spark of hope: for the first sustained period since the 1970s, this country is exporting more goods to nations beyond the EU than to our European partners. The Mail is wary of reading too much into three months’ figures. And it is true the turnaround is explained partly by a 7.3 per cent dip in exports to the eurozone. But on the plus side, UK manufacturers are doing a sterling job of exploiting fast-growing markets outside the EU – from China to Brazil – boosting their exports by an impressive 13.2 per cent. Meanwhile, the Centre for Economics and Business Research predicts that in five years, exports to Asia will grow by 30 per cent, to Latin America by more than 40 per cent and to Africa by 60 per cent.
If these forecasts prove anything like accurate, we are witnessing an historic reorientation of our trade. Not only are we beginning to turn away from our over- reliance on services such as banking, but we are weaning ourselves from dependence on a statist, over-regulated Brussels. This week, amid much brouhaha, the Coalition announced £ 50billion of guarantees to stimulate growth. We hope much of this will go to firms exploiting these burgeoning new markets.
For we know that if Britain is to survive in these cut-throat times, businesses need all the help they can get to reach out beyond a sclerotic Europe to the wider world, where our imperial history gives us a strong competitive edge.
This is not just the best hope for the 500,000 16-24 year-olds now languishing without jobs. It may be the only one.