THE TREND OF EXPORTS

Press, Volume CI, Issue 29906, 21 August 1962, Page 7

THE TREND OF EXPORTS

Much will depend on how well British industry adapts itself to the new situation. It will need to increase efficiency, possibly by concentrating on its most economic products It will need to match rises in costs by greater productivity, to adjust its practices to changing demands. and to exploit its new opportunities in Europe. Trade Pattern Two years ago only 14 per cent, of British trade was with the E.E.C., 42 per cent, was with the Commonwealth, and 44 per cent, with the rest of the world. Since then, British industry has been remarkably successful in exporting to Europe in spite of the Compiunity's external tariff: and it has now established a favourable balance with Community countries —a good pointer to its ability to face full European competition.

British exports to Europe as a whole now exceed exports to the Commonwealth. British exports to the Six have risen by more than 30 per cent, since 1960; exports to New Zealand have fallen by a third, to Australia by a seventh, and to Canada by a sixth.

Figures for the first four months of this year are now

clocks, paper-making, footwear, and toys probably. Industries likely to benefit are those whose costs fall as the size of the market increases and whose expansion in Europe at present is prevented by the external tariff

Steel and chemicals are two industries expected to expand substantially. Some sections of the motor-car industry, particularly quality and sports cars and commercial vehicles, should do well. Other industries expected to expand are woollen textiles, electrical and general engineering.. rubber manufactures, knitwear, and clothing.

Much, of course, will depend on the response of individual managements to the spur of competition. Generally, however, the inefficient and over-protected will go to the wall. Indeed, this is one of the major fruits of union Once the perhaps painful readjustment period is over, British trade with Europe should rise and trade with the Commonwealth would decline in importance, though it would remain substantial Whether the balance of payments would be affected depends on Britain’s competitive ability. Another major fruit of

will be protected by tariff Food prices will rise, adding an estimated 3 per cent, to the cost of living. But nearly £3OO million now spent on farm subsidies would be cut from the tax bill. The price of manufactured goods in Britain would tend to fall, particularly the price of European products. <To Be Continued)