United Kingdom: Exports

Lord Howell of Guildford Excerpts

Thursday 8th May 2014 Lords Chamber

[Viscount Younger of Leckie]

The noble Lord will be aware that we are very much aware of that. Like all major developed economies, the UK does not operate an exchange-rate-targeted monetary policy regime, and has not done so since 1992. The relationship also between exchange rate movements and trade flows is somewhat ambiguous, and evidence suggests that export growth is driven more by changes in foreign demand than by price competitiveness.

[Lord Howell of Guildford (Con)]

Does my noble friend appreciate that not only does the 40% figure probably largely underestimate the service content in all our manufactures, as well as the major element of equipment and knowledge expertise in all our exports, but that the vast majority of growth in that area is occurring in the huge new markets of Asia and Africa and in the English-speaking Commonwealth network? Will he ensure that his colleagues in all the departments concerned with promotion of services overseas, including the UKTI itself, work harder than ever to focus on that priority and to ensure that we succeed in those markets, where our future will be largely determined?

[Viscount Younger of Leckie]

My noble friend is right that, through the efforts of UKTI, our focus goes very much beyond the eurozone and the European economy. Despite the tough conditions, UK exports to emerging economies have increased in recent years. It is very pleasing to note that, since 2010, UK exports to the Far East—to China—have increased by 52%, to India by 24% and to Brazil by 37%. However, there is still much more work to do.