Responding to the latest official statistics, showing that the
UK trade deficit widended
from £6.9bn to £8.9bn between February and May 2017,
Allie Renison, Head of Europe and Trade Policy at the Institute
of Directors, said:
“While the level of exports has picked up slightly over the
past year, this is consistently outstripped by a growth in import
levels. The latest UK trade figures today show that the fall
in sterling has not yet fuelled export-led growth in the UK
economy, but we would caution against reading too much into the
headline figure. The continued rise in imports reassures us that
despite the surge in import prices, domestic demand remains
strong. It also suggests firms don’t yet feel the need to need to
turn to import substitution, although such an option may not even
be open to many due to the specific nature of what they are
importing.
“While many companies don’t wait for trade agreements to
internationalise their business, there is an acute risk that a
disorderly disruption to formal trading arrangements between the
UK and EU could complicate many firms’ commercial ties to
Europe.
“An increase in the costs of trading with our largest regional
market will have implications for consumers and business
investment in the UK, so it is essential that the Government push
for an early agreement with Brussels on a Brexit transition
period. Our Director General will be making this argument to
Ministers at Chevening today.”
