West Midlands set for £363m boost
The Government says that the West Midlands’ economy is expected to grow by up to £363 million as a result of a future UK-US free trade agreement.
It is one of the regions that is expected to benefit most from an FTA in proportional terms.
The UK today(MON) published its negotiating objectives for an agreement with the United States, with talks expected to begin this month.
The US is the West Midlands’ largest export market, accounting for 13 per cent of all West Midlands goods exports, and 3,037 businesses in the West Midlands collectively export £12,633 worth of goods to the US every minute.
A number of West Midlands businesses have already come out in support of an FTA, saying it would help them to trade more easily.
Andrew Riley, chairman of Kingswinford-based Mechatherm International, said: "As current global trading conditions are very difficult for all businesses, so a UK-US FTA could only bring positive news which would assist all exporters."
Mechatherm provides equipment for the aluminium and other non-ferrous industrial sectors.
Over the last three years the company has seen significant growth in demand from the US, which now makes up half its exports. The company has also recently secured a contract to sell to the US that is worth approximately £11.7m in sales over the next two years.
Mechatherm, of Hampshire House, High Street, currently has 60 staff and plans to open an office in the US in the near future. A UK-US FTA could help make it easier for the company to set up by cutting red tape and simplifying processes.
The region exported £73.9m worth of metal ores in the year to September 2019, and exports from the region account for 18.4 per cent of all UK exports of the product.
The free trade agreement is part of the Government’s wider vision to level up economic growth across the whole United Kingdom.
The negotiating objectives published today set out that any future agreement must protect the NHS and uphold high standards on food safety and animal welfare.
The agreement will also include a chapter on digital trade, to maximise opportunities for businesses to trade digitally across the Atlantic.
Prime Minister, Boris Johnson said: "We have the best negotiators in the business and of course, we’re going to drive a hard bargain to boost British industry.
"Trading Scottish smoked salmon for Stetson hats, we will deliver lower prices and more choice for our shoppers.
"Most importantly, this transatlantic trade deal will reflect the unique closeness of our two great nations."
International Trade Secretary Liz Truss said: "Striking ambitious free trade agreements with our partners around the world is one of the key opportunities of Britain becoming an independent trading nation once again.
"This deal with our biggest single trading partner will cut red tape for our small businesses, cut tariffs for our great products from dairy to cars and increase growth in all four nations."
