UK must stick to exports for long term says Lord Green

TRADE minister Lord Green has told the North West business community that investment in export for the long term is an “essential ingredient” in their future planning.

Speaking at a major event in Liverpool on Monday as he launched Export Week with a clarion call for UK firms to embrace fast growing markets such as Brazil, China, India, Indonesia and South Korea, he said: “As a country we have to push ourselves forward towards these new markets.

“It has to be a collective effort, because the Government can’t do it. We have to do it and we have to get it right because there aren’t many other games in town.

“We neeed to do it and we need to stick to it as a strategy for 10-20 years and we have all the basics to get it right. If we do this we will benefit from stable growth, which will create jobs for our children and grandchildren.”

He praised the North West region’s progress in exports – and said it has some world-leading businesses already trading and thriving internationally in the nuclear, aerospace, automotive, pharmaceuticals and chemicals sectors in particular.

Lord Green told the audience of more than 170 business people at the Hilton Hotel that since his appointment in 2010 he has visited more than 50 countries, and had found there was a “very warm welcome” for British goods and services in nearly all of these locations.

“The Olympics last year has helped – it was a fantastic event for this country. The doors are very-much open – international markets want what we can offer, and we know we need more growth, so this is very much a national export challenge and Export Week is an important part of this”

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He said that by increasing the number of companies who export by roughly a quarter, about £36bn could be added to the UK economy.
 
He added: “Research conclusively shows businesses that export become more innovative, more productive and achieve a level of growth that would not otherwise be possible.
 
“Our future prosperity rests on UK companies doing business abroad. I hope that Export Week will encourage companies not already doing so to think about trading abroad.”
 
Clive Drinkwater, UK Trade & Investment’s North West director, who is visiting companies across the region to bang the drum for more exports, said it was proven that companies which export are more flexible, agile and resilient.

As well as the BRIC (Brazil, Russia India and China) economies, he said African nations should be on firms’ radars, along with the MIST countries, which he said comprise Mexico, Indonesia, South Korea and Turkey.

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“We have made progress in this region in fast growing markets, but the truth is locally and nationally we need more. Five years ago China was the UK’s 12th largest market, and it’s now the third with £2bn in exports in 2012.

“I don’t want exports to the EU to drop , but we really need to look to the opportunities in fast growth markets, that’s where this country will succeed.”

Mr Drinkwater added: “In 10 years’ time the world’s population will have grown by a further 1 billion people, almost all of that in emerging, high growth economies.

With our current biggest markets experiencing the slowest growth rates, we desperately need to embrace the opportunities that exist in developing markets or risk being left behind.

“The ability to trade anywhere in the world will be a defining characteristic of the most successful business of the future, enabling them to reach many millions of potential new customers and we want to help companies achieve this objective.”

Leading economist Andrew Sentance of also addressed the seminar said the global economy is in the throes of a “new normal” where the balance of power is shifting towards the East, to countries like China and India.

He argued that while the export of UK manufactured goods was welcome, in overall terms they would not generate as much as the service sector.

“Within the service sector there are lots of areas for opportunity within business and professional services, financial services, the creative industries such as music and film, IT and software, higher education, not to mention tourism heritage and culture.”

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For more information about Export Week visit: www.exportweek.ukti.gov.uk Businesses can also get free help and advice on how to export successfully by calling UKTI’s North West International Trade Team on 0845 603 7053.