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roundtable: international trade


The UK is looking to exports to boost the economy and get us out of recession, but how likely is it that international trade will provide the impetus that will deliver growth?


How local help can boost global trade Participants


A roundtable discussion hosted by Lloyds Bank and chaired by The Business Magazine brought together experts to discuss the opportunities, the new and established markets, the obstacles, and the support that exporters are looking to receive. John Burbedge reports


Steve Clarke: Area director, Lloyds Bank, Wholesale Banking and Markets


Julian Grazebrook: Group finance director, Eurac Group, brake disc manufacturers


Doug Morrison: Port director, Associated British Ports (Port of Southampton)


Shaun Parsons: Director, PSP, worldwide logistics (Southampton Boat Show sponsor)


Rory Pereira: Deputy regional director, UKTI South East


Jolyon Pope: Director, Merityre Specialists, UK retail and exporting of tyres


David Squibb: International trade director, Lloyds Bank, wholesale banking and markets


Lined up to debate: our Roundtable team


UKTI has a lot to offer and ambitious aims


Rory Pereira began the discussion by outlining some of the support available from UK Trade & Investment (UKTI). He told the Roundtable that UKTI, involved in more than 100 international markets, had 220 UK trade advisers working regionally, 30 in the South East, and 1,000 staff operating overseas.


“We have international trade advisers throughout your region, and a huge amount of information, contacts, training and experience to offer. UKTI can help but we just need to get alongside the right local businesses and we can’t do that all on our own.


“We will succeed or fail on our ability to work with local partners. You should see us as your international trade arm. We don’t do what you do, but we do have an advisory network and funding at your disposal.”


He mentioned the UKTI suite of services, including: • Support for novice exporters, focused on SMEs


• Passport to Export, assessment, training and planning help


• Gateway to Global Growth, diversifying into new markets


• Exporting for Growth, initiatives with local partners.


Key UKTI ambitions are to help UK exports to double to £1 trillion with 100,000 more UK companies exporting by 2020, and the UK


www.businessmag.co.uk


meeting the European average of one in four companies exporting (UK currently 1:5).


While UK’s traditional export markets have been western Europe and north America, other markets are now developing, notably with BRIC economies and CIVETS (Columbia, Indonesia, Vietnam Egypt, Turkey, South Africa). Following public sector cutbacks, the UKTI has had to be flexible and redirect its resources to areas where it adds most value for British industries. UKTI teams overseas is now heavily staffed by local business expertise rather than British diplomats. “So now you can talk to informed Egyptians in Cairo etc, who know the best local partners. Our aim is always to get British businesses in front of overseas opportunities before they are gone.”


UKTI is staging nationwide awareness events during Export Week (November 12-16).


Current international trading update


ABP’s Doug Morrison agreed that “emerging markets are the future.” Port of Southampton will handle close to 670,000 cars, up 30% on last year. “While we are seeing very good numbers in the car export business (mainly to the Far East and USA), the downside is that we are spending £150 million on expanding our container terminal and that business is currently disappointing. This


Gary Whittle: Commercial director, Meachers Global Logistics


Sean Wright: Partner, Shoosmiths, solicitors


David Murray: Managing editor and publisher of The Business Magazine, chaired the discussion


reflects the UK High Street spend, because 95% of what we handle in Southampton containers is imported Far East manufactured goods.”


Morrison suggested Southampton’s container business was a good economic barometer. “UK retailers order months in advance but they are not stocking up with the Christmas supplies that we would expect. It means they have enough stock to cope with the demand out there. It tells the tale that what is coming around the corner is not any better than what we are seeing now.”


Sean Wright agreed: “None of my clients sees a consumer-led recovery. It will be more of the same in 2013.”


Morrison pointed out that 40% of what the UK exports is fresh air – knowledge and services – not something that you can put in a container. UK waste products like scrap metal and paper were still being container exported, but there are few signs of any dramatic increase in other goods, apart from cars.”


Banker David Squibb had a more upbeat message, quoting the Ernst &Young Item Club report (October15) that suggested the UK economy would have modest consumer-led growth over the next two years – contrary to the IMF’s view. E&Y argued that the Olympic, Jubilee


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – NOVEMBER 2012


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