Foreign Affairs and International Development

Part of Oral Answers to Questions — Justice – in the House of Commons at 8:02 pm on 15 May 2012.

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Photo of Jeremy Lefroy Jeremy Lefroy Conservative, Stafford 8:02, 15 May 2012

At a time of great difficulty, it is always tempting to look inwards. However, it is now more important than ever to look outwards, because it is by engaging constructively with the world that we will see growth in our economy and security for our people, and help others to tackle grinding poverty and the effects of climate change. I therefore welcome the Government’s focus on exports, on inward and outward investment, on expanding the UK’s diplomatic network—I should like to echo the praise for the work of our diplomatic missions around the world—and on well-targeted development aid.

Figures released today show that UK exports—that is, exports of goods and services combined—have increased by 17% since March 2010 to £41.8 billion. Significantly, exports of goods to non-EU countries have risen from £10.8 billion in September 2010 to £13.1 billion in March this year. Almost all the recent increase involves exports of goods to non-EU countries. It is worth pointing out that six of the 10 fastest growing countries in the world are in sub-Saharan Africa—many of them are members of the Commonwealth—and it is to those countries that we should look for our growth in the next two to three decades.

British companies have been working very hard against fierce competition, but we cannot rest there. Britain has a lower percentage of small and medium-sized enterprises involved in exports than our rivals, and we need to help those companies to compete across the globe. Export Credits Guarantee Department cover has improved since last year, but I would urge the Government to ensure that our companies have access to the same cover as that enjoyed by their competitors in Germany and the Netherlands. At the moment, we fall considerably short of that goal.

One factor that is not quantifiable but is nevertheless significant for the UK’s export performance is the UK’s diplomatic network. A recent article in The Economist stated:

“Diplomats have been told to focus on three objectives: defending national security, looking after British citizens abroad and—above all—boosting prosperity by promoting British business. If Britain moves quickly, it can be the first European country to spot the vital need for long-haul, bilateral diplomacy, Mr Hague suggests.”

The Foreign Secretary is right. Too often, we have been complacent or slow off the mark, and lost traditional markets or failed to take the new opportunities, yet Britain is opening eight new embassies in Asia by 2015, at a time when others are cutting back, and despite a smaller budget.