David Mundell: Scotland has "golden opportunity" to grow exports

I’m pleased that The Scotsman’s Vision magazine is focussing on exports for its latest edition. Because trade is the cornerstone of Scotland’s economy. Our success in striking deals to sell our world-class produce and expertise at home and across the globe will be key to our future prosperity.

David Mundell says Brexit presents an opportunity for Scottish exports. Picture: PA

The good news is that our vast array of quality produce – not least food and drink from our glorious natural larder – remain in high-demand.

And Scotland continues to be a major centre for financial and professional services.

Last year alone, Scottish businesses exported more than £30 billion of goods internationally. We should be proud of that – and strive to do more.

We have a golden opportunity to do this, as we leave the EU, with the UK embarking on an ambitious new trading relationship with the world. But we should never forget the importance of our deals with the rest of the United Kingdom of Great Britain and Northern Ireland.

England, Wales and Northern Ireland account for 60 per cent of all Scotland’s sales. And we know that more than half a million Scottish jobs depend on this vital UK internal market.

As we leave the EU it is crucial that we don’t lose sight of how important the UK market is.

Together, Scotland, England, Wales and Northern Ireland are stronger.

Our diverse economies and trading relationships will continue to be essential in the future.

Scotch whisky – known as the water of life – accounts for 70 per cent of all Scottish food and drink exports. The industry employs more than 10,000 people in Scotland, and its contribution to the UK economy is worth a staggering £5.5bn a year.

The UK Government continued to support the Scotch whisky success story by freezing duty on spirits again this year. Our record of reductions and freezes to alcohol duties have provided more than £4bn of support to the drinks sector in the UK.

The UK Government’s Department for International Trade (DIT) has an overseas network that works directly with companies in 177 cities in 108 countries around the world, and uses these networks to promote projects to potential investors.

Working with organisations like Scottish Development International this has already helped to secure access to key markets for products such as Scottish beef in Japan and by helping Scottish oil and gas companies to expand into supply markets around the world.

As Secretary of State for Scotland I have travelled overseas to bang the drum for Scottish business interests, including in Iceland, Chile and Argentina and New Zealand. I have seen for myself the level of interest in Scotland’s produce.

The UK Government has an export strategy which sets out our ambition to take the UK’s exports, as part of GDP, from 30 per cent to 35 per cent. We have seen the number of Scottish businesses exporting abroad increase by 10 per cent in the last year to 10,700.

Our strategy sets out how the UK Government will support businesses of all sizes to make the most of the opportunities presented by markets around the world.Scottish businesses also benefit from the export support provided by DIT as well as UK Export Finance (UKEF), the UK’s export credit agency, which provided nearly £62 million of support for Scottish exporters in 2017-18, resulting in almost £79m worth of overseas sales.

UKEF supports companies across the UK and has dedicated export finance managers in Scotland to help firms identify their export finance requirements and find solutions.

As we leave the EU, the UK Government has confirmed that Scotland will have significant input into future trade negotiations. DIT announced earlier this year that the Scottish Chamber of Commerce will represent Scottish businesses on our new Strategic Trade Advisory Group which will help deliver trade agreements with the likes of the USA, Australia and New Zealand.

The UK Government will continue to work closely with the Scottish Government and businesses to make sure that any future trade deals work for the whole of the UK.

The UK is one of the largest economies in the world, with a history of innovation and economic success. We now need to build on our proud history of being an outward-looking country and look forward to what opportunities we can seize globally while continuing to nurture our crucial internal UK market.

Scotland has a flexible, versatile and skilful workforce with world-leading sectors including in the areas of advanced manufacturing, food and drink, agriculture and life sciences.

Our future as part of a vibrant United Kingdom can go from strength to strength with a growing economy and an increasingly healthy exports picture.Let’s work together to achieve these goals.

David Mundell MPSecretary of State for Scotland