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Melanie Johnson MPA Wake-up Call to Business |
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Thank you, Simon. I'm delighted to see so many of you here today. As Peter has said, negotiations permitting, the first new member states could be joining the EU in under two years. For business, this means working today to secure advantage for tomorrow. And this is why we want the business press to be fully aware of what enlargement means. These days, business cannot ignore Europe. Over half our trade is with other EU member states. Three million jobs depend upon that trade. Our ability to go on attracting inward investment - and, of course, we receive almost a fifth of all foreign direct investment into Europe - depends, crucially, upon our place in the Union. Enlargement brings more opportunities, more prosperity and more jobs. It'll create the largest single market in the world - larger than the US and Japan combined - with nearly 500 million consumers. Doing business with more partners in more markets at more competitive prices – that's good for business and good for consumers. Independent research estimates £1.75 billion boost to UK GDP – around £100 per household - and 300,000 new jobs across the current EU member states as a result. In many ways, the economies in candidate countries are thriving and are certainly key to future growth. Many are growing at rates higher than most present member states and have weathered the storm of global economic downturn. Last year, Hungary's economy grew by 3.8%. The Czech Republic's by 3.6%. And these success stories are likely to continue. When they joined the EU, the Spanish and Portuguese economies grew at high rates for a number of years. There's no reason to expect that it'll be any different now. It's no surprise that jokes about Skodas are a thing of the past! As these markets grow so does demand for our goods. The level of UK exports to candidate countries is on a consistent upward trend. UK exports to Estonia increased by 25% in 2000 alone. In the past there were obstacles to doing business with the candidate countries. But this is no longer the case. On accession, the enlargement of the single market will be complete. The candidate countries are coming into line with EU standards and regulations. An enlarged EU will have a common regulatory framework, as well as the same certification and testing standards. As Minister for Competition, Consumer Affairs and Markets, this is particularly important to me. Meeting high EU standards in areas like environment and infrastructure also creates opportunities for British business. It requires work and investment by the candidate countries, and the UK has the skills and expertise that they now need. Some of this is provided through EU aid programmes, which cover areas like public administration, transport and agriculture. They're already worth around ?3 billion per year. These programmes are a good way into doing business in candidate country markets, both now and in the future. I want to make sure that UK companies know that they don't have to wait until the Union is formally enlarged before starting to think about acting. British Trade with the candidate countries is increasing rapidly. In 2001 total levels of bilateral trade with the Central Europe rose to £6.7 bn, an increase of 14% since 2000. Leading UK investors include companies as diverse as Pilkington Glass, GlaxoSmithKline, Cadbury Schweppes and Anglian Water. It is not just multinationals that are reaping the benefits of investing in the candidate countries. A significant proportion of the 15,000 or so companies, that Trade Partners UK estimate are already exporting to or investing in the region, are SMEs. We'll hear about two very good examples of UK companies that have already benefited shortly. We are working hard to improve our share of these markets. This week alone we have 3 separate trade missions going to candidate countries. I was very pleased that, as a result of British Trade International's "Opportunity Central Europe" campaign last year, around 1,000 extra companies registered their interest in becoming involved in Central Europe. And what is the Government actually doing to help? Today, we're launching a website dedicated to enlargement. I want business to know there is lots of support available. The website itself provides information to help businesses to understand EU enlargement. Trade Partners UK are ready to give advice and information on opportunities to do business in the candidate countries and British Embassies support this work on the ground. The site is designed to be a good way to tap into our expertise. In conclusion, the opportunities in these markets are good news for British business and good news for Britain. But only if we lead, not lag behind, our competitors. This kind of opportunity doesn't come around often – and the UK can't afford to miss out. |
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Other speeches by Melanie Johnson MP
(the following are available from the archive) |
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