European Affairs — House of Commons, 2018-03-14
Topic: Foreign Trade
Ross Thomson (Conservative, Centre-right): As someone who actually represents, I hope, the young people of the next generation, I do not share the pessimism of the hon. Member for Streatham (Chuka Umunna), because the great Brexit prize will be regaining our ability to strike new free trade deals across the world. Not only will Britain rejoin the rest of the world, but we will have the opportunity to lead the rest of the world as a global free-trading nation, championing trade liberalisation and taking on the voices of protectionism. Let me be clear that we are not leaving Europe or turning our backs on our European neighbours and partners. Rather, the Prime Minister has been explicit that the Government are seeking a deep and comprehensive trade deal with the EU that covers goods and services By leaving the customs union, the UK will regain its ability to set its own independent trade policy. Our trade with the EU is in deficit and declining. As the Minister stated in his opening remarks, it was 56% in 2006 and is now down to 43%. However, our trade with the rest of the world is in surplus and rising. We should not play down the importance of Europe as a trading market and partner, but we must orient ourselves towards the thriving economies in the rest of the world, such as in south and east Asia, and their growing demand for goods and services. Fifty-seven per cent. of Britain’s exports are now to outside the EU compared with only 46% in 2006. Furthermore, the International Monetary Fund estimates that 90% of global economic growth in the next 10 to 15 years will originate from outside the EU International demands for British goods is growing, and Aberdeen, which I represent, is well placed to take advantage of that as 90% of the city’s manufacturing, which is mainly in oil and gas and environmental engineering, gets exported. The oil and gas industry is truly global, and anchored right here in the UK. Current industry exports accounted for 43% of the UK supply chain turnover in 2017, up from 41% in 2016. Oil & Gas UK’s "Vision 2035" has the ambitious aim of doubling the supply chain share of the global market from 3.7% to 7.4% in 2035 The Balmoral Group, based in my constituency, provides an example. It was established back in 1980 and specialises in sub-sea buoyancy, renewable energy and engineering solutions. It employs about 500 people in Aberdeen. It is highly dependent on the export market: it is currently focusing on west Africa, South America and the gulf of Mexico. Its representatives have been clear with me that their only opportunity for growth is in the export market. They have already been working closely with the Department for International Trade on trying to exploit those opportunities Thanks to the investment from the UK Government, the Oil & Gas Technology Centre in my constituency was set up. It is working with the oil industry in developing solutions, new technology and innovation to maximise the full potential of the UK North sea—from asset integrity to maximising recovery from small pools, from drilling to decommissioning. The technology, developed in my constituency, is exportable and the opportunities are massive As my hon. Friend the Member for Banff and Buchan (David Duguid) highlighted, the north-east is home to a thriving food and drink industry. It is also known for its whisky exports. The story of whisky is well known; perhaps a less told story is that about our other domestic exports. Here are just a few examples. In fishing, there are companies such as Macduff Shellfish, Denholm Seafoods and Lunar Freezing, which export to countries such as Nigeria, China, Vietnam, Uruguay and Ukraine.