Posted on March - 29 - 2010
Call to help exporters as trade gap widens
The government was today urged to do more to help companies trading overseas after official figures showed UK exports took their biggest plunge in more than three years during January.
Exports fell by £1.4bn, or 6.9 per cent, to £19.5bn compared with December in the largest month-on-month fall since July 2006, according to the Office for National Statistics.
It is likely that snow-bound manufacturers struggled to get their goods to ports.
The overall decline far outstripped a 1.6 per cent fall in imports – leaving the UK’s goods trade gap with the rest of the world widening from £7bn to £8bn in January.
This is the biggest trade gap since August 2008 and undermines hopes that a weaker pound will boost exports and help rebalance the economy.
The news put the pound under further pressure, falling below 1.5 US dollars.
Greater Manchester Chamber of Commerce urged the government to do more to support exporters after a survey of 250 businesses across the region found one in eight had experienced problems securing access to trade finance in the past year.
Nearly half of respondents felt they had lost business to exporters in countries with state-backed export finance schemes.
Angie Robinson, the Chamber’s chief executive, said: “There are real opportunities, even in these difficult economic times, in the global marketplace.
“Exporters need assistance. We need to enable companies to manage their risk, and get on with what they are really good at – doing deals and making sales.”
She added: “Without an adequate, state-backed export finance scheme, British businesses will continue to lose out to overseas competition.”
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