Sorry Tony, we now trade more with the rest of the world than EU
Three days ago Tony Blair repeated the Left’s mantra that we can’t survive outside Europe. The facts are very different
BRITISH exports to the rest of the world are surging ahead of those to the European Union, official figures showed yesterday.
It is the first time since records began that such sales of UK goods have outstripped those to the EU for six months in a row.
Previously they have beaten EU exports on a quarterly basis – or three months – but never for such a sustained period.
The figures appear to vindicate David Cameron’s ‘mercantile’ foreign policy, which has seen him lead trade missions all over the world in order to refocus trade away from the EU’s struggling economies.
They are also a major rebuff to Tony Blair, who claimed this week that quitting the EU would cause ‘significant damage to our economy’.
Meanwhile eurosceptics will seize on the figures as evidence that Britain could carve out a prosperous future outside the EU.
But total sales of British goods overseas have fallen to the lowest level for nearly five years amid warnings that the strong pound and weak eurozone are acting like a ‘straitjacket’ on exporters.The slump will come as a setback for the Government ahead of the General Election next month.
Britain has exported more goods to Europe than the rest of the world since the UK joined the Common Market in the 1970s. Exports to the Continent were worth £147.9billion in 2014 compared with £144.9billion to non-EU countries.
But the gap has been closing in recent years as the crisis in the eurozone has hit demand for British-made goods and UK firms looked further afield for business.
Exports to the EU in the three months to February were 7.4 per cent lower than a year earlier at £34.4billion. At the same time, sales of goods stamped ‘Made in Britain’ to the rest of the world were up 4.2 per cent to £37.9billion.
Matthew Elliott, chief executive of Business for Britain, said: ‘These figures put the kibosh on the scaremongering from the pro-EU cabal that would have had us stuck in the euro today.
‘The EU makes up a declining share of our trade yet its out-of-date rules make it harder for the UK to do business across the globe.
‘With firms on the Continent so reliant on trade with the UK we are in a strong position to renegotiate our relationship inside the EU or secure a trade deal outside altogether.’
Britain’s trade deficit with the EU – the difference between exports and imports – widened to £21.1billion in the three months to February.
The ONS said it was the biggest trade gap since records began in 1998 and ‘mainly’ reflected the slump in exports – with demand from the crisis-torn eurozone particularly weak.
Allie Renison, head of trade policy at the Institute of Directors, said: ‘Our trade deficit in goods with the EU continues to widen, reflecting weak demand caused by prolonged stagnation in the eurozone. This underlines the need to reorient our focus on key emerging markets, including Asia.
‘The Government should be pushing the EU as hard as possible to secure trade deals with countries where tariffs on goods still matter for British manufacturing exporters.’
The pound has risen by nearly 20 per cent against the euro in the last two years – making it more expensive for buyers in the single currency bloc to buy goods made in British factories. During this time, British firms have sought to exploit faster-growing markets such as China, India, Mexico and parts of Africa.
Alasdair Cavalla, an economist at the Centre for Economics and Business Research, said: ‘There has been a certain amount of conscious redirecting of exports through trade missions and trade deals with partners outside the EU.’
But despite the shift to far-flung markets in Asia and Latin America, total exports have fallen to the lowest level since early in this Parliament. Sales of British-made goods overseas fell by £900million or 3.7 per cent in February alone to £23.2billion – the lowest monthly figure since September 2010.
Chancellor George Osborne has promised to double exports to £1trillion by 2020 to strengthen the economy – but is on course to fall well short of that target.
Exports of goods and services fell from nearly £515.9billion in 2013 to £507.7billion in 2014.
David Kern, chief economist of the British Chambers of Commerce, said: ‘It is clear that the UK is not yet making adequate process to rebalance the economy towards net exports. Unless we see firm action
‘Put the kibosh on the scaremongering’ ‘Stagnation in the eurozone’
to improve our export performance, it is not clear how we will sustain strong growth in the long-term.’
Paul Hollingsworth, UK economist at Capital Economics, said the bleak figures ‘will re-ignite fears that the strong pound and weakness in demand in the euro-zone is acting as a straightjacket on exporters’.
Exports to China jumped 21 per cent between 2012 and 2014 sales of British goods to South Korea were up nearly 14 per cent.
China is now Britain’s sixth biggest export market behind the Irish Republic, France, the Netherlands, Germany and the US.
Rising global demand for Britishmade cars and Scotch whisky has fuelled rising exports over recent years, although whisky sales dipped last year.
Sales of British-made cars to China have increased seven-fold since 2009 amid booming demand for luxury brands such as Aston Martin and Rolls-Royce.
Figures from the Society of Motor Manufacturers and Traders show 137,410 UK- build cars were exported to China in 2014 – up 14.5 per cent on 2013 and up from 19,417 since 2009. China is now the biggest overseas market for British cars having overtaken the US in 2013.
The total value of Scotch whisky exports has risen by 74 per cent since 2004, according to the Scotch Whisky Association, while overseas sales of single malt has jumped 159 per cent.
IN what could be a pivotal moment, Britain is now, over a sustained period, exporting more to the rest of the world than the EU.
The figures demolish the claim made by Tony Blair – in his utterly disingenuous Europe speech only three days ago – that we are so reliant on the EU for trade that loosening ties with Brussels would be a catastrophe.
All bar Mr Blair and his equally deluded ‘friend’ Mr Miliband can see that, with the one-size-fits-all eurozone in seemingly inexorable decline, Britain’s future relies on looking beyond the borders of a statist, sclerotic EU.
Indeed, the historic tragedy is that Britain’s political class turned its back on our natural trading partners in Africa and other prosperous parts of the Commonwealth such as Australia, Canada and India (the world’s fourth fastestgrowing economy) in the first place.