EU-USA trade deal could bring £202.9m to NE

A potential free trade agreement between the EU and the USA could bring a £202.9m boost to the North East economy.

Kenneth Clarke, the Prime Minister’s Trade Envoy and Minister without Portfolio has highlighted the benefits of a successful transatlantic deal.

The potential trade agreement, known as the Transatlantic Trade and Investment Partnership could boost total UK exports by 1.3% or around £19bn.

HM Revenue & Customs quarterly figures have shown that total exports to the US alone are currently worth £202.9mn to the North East.

A successful deal would break down barriers to trade between the economies of the European Union and the United States, save exporters millions of pounds, generate new jobs and create a massive new marketplace representing 47% of the world’s output.

Negotiations are expected to begin this summer and President Obama has said he hopes to conclude a deal within two years.

Mr Clarke has hosted a meeting of small businesses from around the country to discuss the trade deal.

He said: “The Transatlantic Trade and Investment Partnership is a once-in-a-generation opportunity to boost the economies on both sides of the Atlantic by billions of pounds.

“This is a manna from heaven for western economies looking for opportunities to stimulate growth.

“It is also the sort of world-defining reform that we, in the UK, could only ever lead from within the EU.

“The Prime Minister has been banging the drum from inside the EU to ensure that this agreement is the best it can be for Britain. Outside the EU we would be reduced to watching from the sidelines.

“The opportunities presented by this agreement for the North East could be extremely significant.

“As the quarterly figures show, exports to the US is currently worth £202.9 million to the North East.

“I want to make sure the North East’s small businesses benefit to the greatest possible extent, which is why I have spent time this morning hearing what barriers they face in exporting to the US and how we can ensure this trade deal tears them down.”

Among those taking part in the discussion was Managing Director Joe Telford and his business partner Lesley Moody from Billingham-based firm, AES Digital Solutions.

Launched in 1992, AES had already secured business with some customers in the USA and last year, Joe was awarded a Scholarship to the prestigious Kellogg Business School at Northwestern University, Chicago.

Joe said: “We will be promoting the need for the Government to put the skills and support of UKTI front and centre when encouraging SME’s like us to step up as exporters.”

“The whole process was well supported by our local UKTI team in the North East and the consulate staff in Chicago and I’ve already put some of what I’ve learned into practice while visiting customers in the Midwest.

“We’ve already secured one new contract as a result and have another that we’re working on.”

“Since the beginning of 2013, AES has continued working with customers in the USA and has completed a new contract for a customer on the West Coast.

“We’ve also moved some of our server hosting to the USA, which has been a very cost effective solution to rising data costs in the UK, and helps maintain our competitive edge. “

David Caro, EU and International Affairs Committee Chairman of the Federation of Small Businesses, said:“The FSB is a great believer in free trade and welcomes the start of negotiations for the biggest trade agreement ever between the European Union and United States.

“The USA is the second destination for our exporting members and there is an appetite to trade much more with America.

“There are some issues facing small firms when exporting to the USA, such as tax differences.

“We look forward to advising the Commission on these issues to make sure the agreement works for small exporters.”

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