BREXIT ‘A GOLDEN OPPORTUNITY TO SELL WALES TO THE WORLD’ – ALUN CAIRNS
Wales can seize every exporting opportunity in a changing world, says Welsh Secretary Alun Cairns
SINCE the UK voted to leave the EU, I have been asked many times about what this means for Wales’ economic future. Some people have doubted our capacity and willingness to carry on being one of the world’s leading trading nations. But exports from Wales continue to grow, faster to non-EU markets, and I am confident this trend will continue.
The main reason for that optimism is because of the proven opportunities which lie outside the EU. In the next 10-15 years, around 90% of global economic growth is expected come from non-EU nations. But for us to forge a new role for the UK on the world stage and provide the jobs and prosperity Wales needs, we must steer this shift in the global economy successfully.
Free trade has already taken a billion people out of extreme poverty in just a generation. We are witnessing an explosion of economic growth in the Middle East, East Asia and Africa, which is driving the demand for goods and services in areas where Welsh businesses excel. Nine new HM Trade Commissioners have been appointed to oversee the deepening of relationships across the globe. Just last week, I hosted Simon Penney and Andrew Mitchell, responsible for our future trade relationships with the Middle East and Europe in Cardiff respectively – introducing them to stakeholders and Welsh Government officials.
My trade missions to Kuwait, Qatar, USA, Hong Kong and Japan have demonstrated the demand that is out there for Welsh products and services. As countries such as Qatar seek to diversify away from oil and gas, there are unparalleled opportunities for Wales in our strongest sectors, including healthcare, education, sporting events and numerous other areas.
Last year alone, Welsh firms exported more than £150m worth of goods to Qatar. From high-end manufacturing to our famous foodstuffs, such as Rachel’s Organic yogurt, Welsh products are being shipped in big quantities to Qatar and across the Gulf every year. I am excited at the prospect for further growth after the UK Government Embassy in Doha played a key role in securing a new daily air route to Cardiff Airport from Doha.
Wales is already an ambitious, outward-looking nation, home to innovative businesses developing products that are being sold around the world. Their efforts have made a significant contribution to the value of Welsh exports – between 2017-18 Welsh exports increased by 7.1% to £16.4bn.
In the first few months of this year, the average value of goods exported per supplier in Wales was £750,000. Every day, incredible Welsh businesses are seizing new opportunities in markets around the world. Many of them were exhibitors at the Royal Welsh Show last month, including the Snowdonia Cheese company, which has been successfully exporting to international markets including Canada since 2012.
But there are still many opportunities not being realised. We are punching above our weight, but below our potential. The UK Government’s new Export Strategy aims to address this. It sets out a UK-wide ambition to raise our exports as a proportion of GDP from 30% to 35%, putting us towards the top of the G7. To achieve this, it proposes a new range of measures to help support Welsh companies on the world stage, giving them the practical, promotional and financial support they need to export.
I often hear about the range of barriers businesses face in accessing overseas opportunities. Some firms struggle to find finance, or relevant guidance about how to enter a new market, others simply do not think they are suited to overseas sales.
That is why we will create a network of Export Champions across the UK to guide and inspire companies, building their confidence as they embark on their exporting journey.
The great.gov.uk website will be developed as a one-stop shop for all UK Government business growth and export support. This online portal will also include details on practical changes as we leave the EU.
Some of you may be asking: “So, what’s in the Export Strategy for my sector?” I would say to you that our ambition to join up both devolved and Westminster administrations, local partners and the private sector will provide you with an incomparable level of co-ordinated and tailored export support.
It will give you unrivalled access to an extensive overseas support network. There are currently trade specialists across 11 offices in 108 countries around the world, with 270 diplomatic posts active in 168 countries through the UK Government’s broader network
The UK Government will implement a series of new initiatives to help Welsh businesses utilise the vast international support on offer. This will include unlocking new opportunities for businesses via government-to-government agreements and providing access to UK Export Finance-backed international projects to help Welsh businesses reach overseas customers more easily. Such measures will be instrumental in boosting the confidence of businesses as they enter new markets and respond to overseas demand.
There will also be opportunities for Welsh firms to submit the non-tariff barriers they may encounter when exporting overseas via an online platform for market access, set to launch in the coming months.
Our export strategy builds on the foundations of our modern Industrial Strategy, with support for business to create better, higher-paying jobs at its core, as well as investment in the skills, industries and infrastructure of the future. My team at the Office of the Secretary of State for Wales, along with the Department for International Trade, will identify and support businesses in Wales looking to invest overseas, with the aim of increasing Welsh exports and jobs by removing the market access barriers they face.
Leaving the EU means we can pursue an independent trade policy for the first time in four decades, using that to maximise our global export potential, delivering benefits for businesses, workers and consumers.
Wales already has some fantastic businesses which have experienced significant success when taking their products around the world. I hope they can be a source of inspiration to others, and we can continue being ambitious for Wales and seize this golden opportunity.