William Eichler 30 January 2017

EU biggest export market for nearly all British cities

The European Union (EU) is the biggest export market for 61 out of 62 British cities, new report reveals.

The think tank Centre for Cities has published a new study which highlighted the extent Britain’s major cities are reliant on the EU for trade.

Cities Outlook 2017 focused on the geographical and industrial make-up of UK city exports and found 61 out of 62 British cities relied heavily on exporting to EU markets.

It also learnt two thirds of British cities (41 out of 62) trade half or more of their exports to the EU.

In a warning to the Government, the think tank said British cities would have to dramatically increase trade with other international markets to compensate for a downturn in exports to the EU.

For example, to make up for a 10% decrease in exports to the EU, British cities would have to nearly double exports to China, or increase exports to the US by nearly a third (31%).

Commenting on the findings of the report, Alexandra Jones, chief executive of Centre for Cities, underlined the importance of securing the best possible deal in the Brexit negotiations.

‘Securing the best possible EU trade deal will be critical for the prosperity of cities across Britain, and should be the Government’s top priority as we prepare to leave the single market and potentially the customs union,’ Ms Jones said.

‘While it’s right to be ambitious about increasing exports to countries such as the US and China, the outcome of EU trade negotiations will have a much bigger impact on places and people up and down the country.’

‘It’s also important that the Government aims to reach trade agreements covering as many sectors as possible, rather than prioritising deals for high-profile industries based in a small number of places,’ she continued.

‘Broad trade agreements for all goods and services will help every city to build on its exporting strengths.’

Ms Jones also called on national and local leaders to consider how they make cities more attractive to exporting firms.

‘Improving skills and infrastructure across the UK will be vital in this,’ she said, ‘and should be a central part of the Government’s industrial strategy.’

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