Germany exports five times as much to China as Britain does. EU rules don't hold back German exporters—why should Britain be any different?by Helen Goodman / April 20, 2018 / Leave a comment
Brexit has pushed trade policy to the forefront of British politics and, because I represent a constituency in the northeast of England, which is the most successful exporting region outside London, I take a particular interest.
The northeast is still a substantial manufacturing centre, developing sophisticated products which require intensive research and development, such as pharmaceuticals and chemical products, as well as automobiles. This makes the region especially vulnerable if the government can’t get a good Brexit agreement.
I am often struck by how many people forget about Britain’s manufacturing strengths and assume ours is an economy made up exclusively of services. It is not.
And half of our exports go to Europe, which means that the government’s decision to leave the customs union is especially shattering. Not that this is especially obvious at the moment. That’s because we are currently in a sweet spot where exporters are benefiting from the improved competitiveness of a lower pound—their products have suddenly become cheaper for overseas buyers—and no new trade barriers have been erected.
But when those new trade restrictions are put in place, the practicalities and costs associated with this will exert a huge drag on businesses, especially those with complex supply chains. Businesses in my constituency will feel the pinch.