Building our recovery through trade
There is no doubt that recent statistics have been challenging across the economy.
Trade statistics have been volatile as we have seen the impact of the COVID-19 pandemic and new controls on exports to Europe, and more recently the impact of the war in Ukraine.
Last year, partners in the North East published the North East Trade and Export Strategy with the aim of making trade a key part of our recovery. The North East LEP’s Director of Policy and Strategy, Richard Baker, explains more.
Every month UK Trade Info releases data on goods exports from each region of England. Recent releases have showed the impact of the pandemic and new trade regulations, with total exports from the North East region (which covers both the North East LEP area and Tees Valley) falling in each of the first three quarters of 2021. The good news is that the latest release has seen a turnaround with a growth of 5% in quarter 4.
We’re not alone in this – many regions of England have seen fluctuating figures. We can expect more volatility as the impact of the war in Ukraine impacts trade and increases costs.
Beneath the headline figures though are some positive stories on which to build, with growth in exports of pharmaceuticals and energy related products. And there are signs of recovery in road vehicle exports, although these remain lower than two years ago and there is also evidence of strengthening service exports from the region.
The North East Trade and Export Strategy
When the North East LEP, Chamber of Commerce and Department for International Trade developed the North East Trade and Export strategy last year, we carried out a consultation with hundreds of businesses and sector bodies. We knew that people were finding things tough, with changes to the trading and regulatory environment compounded by COVID-19.
Addressing this effectively is crucial. It is estimated that exporting supports over 165,000 jobs in the region and evidence clearly shows that businesses that trade internationally are more competitive, faster-growing and more successful. Building trade is therefore central to our recovery as a region. That’s what we want for businesses in the North East, and we’ll continue to work together to make sure North East businesses benefit from global markets.
Working together
The North East Trade and Export Strategy identifies our exporting strengths as a region and identifies key markets around the world where there is demand for our products and services. It identified ways to bring the sponsor organisations together to put their resources behind work into these key sectors and markets – and this is illustrative of the way we are continuing to work together looking forward.
Within the region, the North East LEP and the DIT team based at the Chamber of Commerce are working hard and collaborating to provide support to individual businesses. Alongside the free advice and support from DIT’s International Trade Advisers, examples of direct support to businesses include forthcoming trade missions to Ireland, Portugal and the USA. The ongoing Export Academy programme is also helping local companies take their first steps in exporting. Alongside this, over £1m of grants has been awarded to local companies from the DIT Internationalisation Fund to help them promote their products and services to overseas markets. This is helping North East businesses internationalise their websites and marketing materials, travel to overseas markets, exhibit at international trade fairs and get external expertise to help them with their exporting activity.
The North East Growth Hub continues to provide a point of information about trade activities in the region, including forthcoming events, training and trade missions being organised by the DIT.
As the DIT team at the Chamber is absorbed into the Department for International Trade following the publication of the UK Trade Strategy, we will work together to offer a more joined up service in the region and strengthen the focus of events and networking to promote exporting.
Nationally, the clear proposition in our strategy, and our partnership around its development, has been able to create regular opportunities to discuss with government what’s needed in the North East and show what our businesses have to offer international markets.
In the last few weeks alone we’ve met with the Secretary of State for International Trade, and with the DIT team, delegates from central America, and the Kuwaiti Ambassador – all opportunities to speak about our approach and develop new relationships for our region.
Changes to the international trading landscape
Clearly, the international trading landscape has changed for the UK and we are working to make sure that the North East is not only positioned to take advantage of new Free Trade Agreements and growing markets in North America, Asia and the Gulf states, but that we are also supporting North East businesses to continue their trade with Europe.
And as FTA’s are developed, we are working together with partners in the region to try to shape them. Recently we made a joint submission to the DIT about the priorities the North East would like to see in the forthcoming trade deal with the Gulf Co-operation Council. We will do the same for future trade deals looking next at the deal with Canada.
As deals are signed, we’ll be providing the support businesses need during this transition to a new international environment and making sure we’re proactive in grasping opportunities.
Keeping North East businesses updated
Over the coming weeks and months you will hear from teams at the North East LEP and the DIT with more updates about the latest trade data and the range of work that is going on to help North East businesses trade strongly.
Whilst we can expect there to be continuing challenges in the data, we will be working hard to provide support to businesses in the region and take the opportunities we can see in the future.
Support and information on international trade is available on the North East Growth Hub: www.northeastgrowthhub.co.uk.
The North East Trade and Export Strategy is available at North East Trade and Export strategy