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£1.5BN UK EXPORTS TO CHINA IN FIRST QUARTER OF 2009


(...Continued from page 33) and in terms of boosting jobs in the UK, the Prime Minister is under no illusions about the challenges ahead in terms of boosting trade with India. In 2009, total bilateral trade was worth £11.5 billion, with UK exports to India totalling £4.7 billion and £6.8 billion of Indian exports to the UK.

Considering the historic ties between the two countries, it’s not enough. Yet these efforts are pushing the importance of trade up the agenda, a welcome sign for business and, crucially, a clear signal of intent to the UK’s competitors.

POLITICAL WILL

The business relationship with China is another obvious target for the Government, and a major trade delegation is planned there too. China’s economy grew by an enviable 11.9 per cent in the first quarter of 2010, and 10.3 per cent in the second. That meant China’s economy overtook Japan’s for the first time, putting it second only to the US. While Japan’s per capita GDP is still more than ten times larger than China’s, officials in Beijing maintain that China is still a relatively poor developing country. Whatever its position, it’s booming.

Yet the reality of trade between China and the UK makes sober reading. From January to April 2009, total bilateral trade was £7.49 billion, with UK exports to China a mere £1.5 billion. If the Coalition Government can make significant progress in boosting that figure, along with increasing trade with countries such as India, Brazil, Russia, Mexico and Turkey, not to mention the US and EU, then it is clear that the UK economy would be in a better shape.

But it won’t be easy. The UK sells more to Ireland than it does to Brazil, Russia, India and China combined, so something must be done. Yet on the strength of the past few months, it is. Aside from the India and China delegations, the Secretary of State for Business, Vince Cable, has already spent time in Brazil taking the ‘UK is ready for business’ message further afield, and trips to Russia and other countries are planned. Moreover, the Prime Minister has made it clear that trade will be at the top of the agenda for all travelling ministers.

Using the UK’s diplomatic and trade strengths to greater effect is the name of the game. By putting a spotlight on India, China and other emerging regions, it is sending out clear signals to business that the Government sees exports and trade as key to future economic prosperity.

Naturally, there are many difficult issues to address, from protectionism to tariffs, from visa requirements to issues around corruption. And of course another big issue for UK firms is accessing the finance they need to fund overseas expansion.

However, with a political will to address these problems, the potential offered by such burgeoning markets is clear. It is down to governments to ensure trade agreements are signed and markets opened, but, ultimately, it is the responsibility of UK businesses to take the plunge and take maximum advantage of the opportunities presenting themselves around the world.