Export figures for the North East have become the latest cause for concern over the direction of the region’s economy.
Figures from the Office for National Statistics showed that exports from the region dropped significantly in the third quarter of 2021, falling for the third period in a row and standing 6.7% below levels seen a year earlier.
The figures follow a rise in regional unemployment that went counter to the national picture, while an influential business survey recorded two periods of contraction in the North East at the end of last year.
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Business groups have now called on the Government to do more to help businesses trade abroad after problems caused by the pandemic and the Brexit settlement put major challenges in their way.
Jack Simpson, international services executive at the North East England Chamber of Commerce, said: “For the third quarter in a row, we have seen a decline in North East export figures, while the UK average continues to recover from the double shock of pandemic and EU exit. We need practical and committed action to stop this trend.
“The ONS figures lay down the gauntlet for Government to commit to a global Britain and North East. Exporting is a sure way to business growth, but over the last 12 months new barriers and restrictions have made trading overseas more complex and disruptive.
“The Chamber was founded on international support and we continue to offer accredited training, customs brokerage and in-country market support for businesses. But as we enter our second year as an independent trading nation, more must be done to ensure the benefits of international trade are open to all.
“We are calling on Government to increase the practical support available to exporters to tackle trade barriers and reduce the burden of risk for new exporters and markets. With new border changes this month, this support must also be expanded to importers grappling with new processes and in need of advice or support.”
Shevaun Haviland, director general of the British Chambers of Commerce, said: “Our research shows that overseas trade fell off a cliff in early 2020; just 8% of UK exporters saw any increase in the second quarter of that year. Almost two years later and the figures are still way below where they need to be, with only around a quarter reporting improvement.
“We are using our entire Global Business Network and will do everything we can to help firms explore the amazing possibilities that are out there. But more also needs to be done by Government to support UK companies that have had to battle with rocketing costs, disrupted supplies and reams of new paperwork in Europe.”
Regional exports totalled £2.8bn for the third quarter of 2021, down 6.7% in a year. Over the same period, imports grew to £3.2bn.
North East business reported that supply chain issues, along with new barriers to trade as a result of Brexit and the introduction of protectionist measures from countries like the US were making it more difficult to trade internationally.
Exports to the EU actually increased in the latest period but are still 14% below pre-pandemic levels.
The figures also show the North East lagging the rest of the UK, with the biggest different seen in trade with the EU.
The Government is hoping that post-Brexit trade deals with countries around the world will boost exporting, though critics point out that the EU is still the easiest place for UK companies to export to.
International Trade Secretary and Berwick MP Anne-Marie Trevelyan last week said the imminent start of trade talks on a free trade deal with India was a “golden opportunity” for businesses in the UK. The Department for International Trade (DIT) said the deal could almost double UK exports to India, and bolster trade by as much as £28m by 2035.
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