UK miss­ing £10bn in ex­ports

Daily Nation Newspaper - - BUSINESS & CORPORATE -

LON­DON-The UK is miss­ing out on £10bn worth of ex­ports a year to a group of emerg­ing economies, ac­cord­ing to a study by Stan­dard Char­tered bank.

An­nual ex­ports to what Stan­dard calls the Emerg­ing 7 (China, In­dia, Pak­istan, Nige­ria, Bangladesh, Viet­nam and In­done­sia) are cur­rently worth £24bn.

But the bank, which spe­cialises in fi­nanc­ing in­ter­na­tional trade, cal­cu­lates it should be £34bn a year.

Of all the G7 coun­tries, the UK could be a big ben­e­fi­ciary of closer trade.

Stan­dard Char­tered urges the UK to ori­en­tate its Emerg­ing 7 (E7) trade pol­icy ac­cord­ingly.

Michael Vrontami­tis, the bank’s head of trade for Europe and Amer­i­cas, said: “With the UK set­tling into a slower pace of growth and Brexit on the hori­zon, UK busi­nesses need to look more widely for growth.

“It is clear that the E7 coun­tries rep­re­sent multi-bil­lion-dol­lar trad­ing op­por­tu­ni­ties for the UK and Bri­tish busi­nesses search­ing for ex­port di­ver­si­fi­ca­tion and growth.

The study was im­me­di­ately wel­comed by the In­ter­na­tional Trade Sec­re­tary, Liam Fox, who has re­peat­edly stressed the op­por­tu­ni­ties that Brexit presents to re­fo­cus trade pol­icy on faster grow­ing economies.

He said: “As an in­ter­na­tional eco­nomic depart­ment, we are sup­port­ing busi­nesses meet this de­mand, tar­get over­seas mar­kets and suc­ceed on the global stage, so we cre­ate more jobs and pros­per­ity in ev­ery part of the coun­try.”

How­ever, the study does not ex­am­ine the po­ten­tial loss of ex­ports to our big­gest and clos­est mar­ket - the EU - as a re­sult of Brexit. Many peo­ple have ques­tioned whether in­creased trade with the E7 can off­set those losses.

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