Manufacturers call for EU trading reset to be top of new PM’s to do list

Industry leaders are urging the new Prime Minister to renew trading relationships with the European Union after new research showed it remained the “dominant” market for manufacturing exports.

A study by Make UK and business advisory firm BDO suggested that regions which voted for Brexit have increased their dependence on the EU for manufacturing exports, while the European market remains the overwhelming favoured destination for the sector.

Their report found that half of manufacturing exports went to the EU last year, with regions including Wales, the North East and the East Midlands seeing their share increased.

Make UK said the EU remains “by some distance” the most important export destination for UK goods, adding that the new Prime Minister should take immediate steps to renew the trading relationship with the bloc.

Verity Davidge, director of policy at Make UK, said: “Despite the talk of ‘Global Britain’, history shows that geography is always the main determinant of trade.

“The EU was always going to remain the main destination for manufacturers who appear to becoming more, not less, dependent on it as a market.

“As a result, it is vital the Government now takes steps to reset the trading relationship with the bloc and, wherever possible, eases and simplifies trading to boost exports for SMEs (small and medium-sized enterprises) in particular.”

Richard Austin of BDO said: “Manufacturing businesses have done a good job in adapting to new post-Brexit rules for trading with the EU, but ongoing Government support may well be required, particularly for firms at the smaller end of the spectrum.”

Press Association