Daniel Kawczynski: Global markets make Brexit a winner for UK businesses

Writing in the Shropshire Star, Shrewsbury and Atcham MP Daniel Kawczynski also says: “Deal or no deal, our direction of travel is away from the EU and we should have the confidence to embrace that.”

It comes as Prime Minister Theresa May continues her attempts to strike a Brexit deal with the EU amid ongoing division within her own party on the issue.

Mr Kawczynski said Britain must be confident in its future.

Daniel Kawczynski letter in full

Brexit – deal or no deal – UK businesses are winners.

Boris Johnson, in his recent resignation speech, spoke of the “fog of self-doubt” that has descended over the Brexit negotiations.

Currently, the Prime Minister and DEXEU are rightly focused on the detail of the terms upon which we exit from the EU - crucial to our future relationship with the EU of course.

However, this forensic focus, and indeed the fog of self-doubt that does appear at times to accompany it, has served to obscure a more fundamental reality: UK trade with the EU is in relative decline (down 20 per cent over the last ten years), while exports to non-EU countries have grown by 74 per cent over a similar period.

Long before the EU referendum, UK businesses were increasingly taking advantage of global markets and this trend shows no signs of waning.

Deal or no deal, our direction of travel is away from the EU and we should have the confidence to embrace that.

The composition of our exports to non-EU countries also plays to our strengths.

While our exports to the EU are dominated by goods, our non-EU exports are evenly split between goods and services.

With nearly 80 per cent of the UK economy based in services, the non-EU market presents a much greater opportunity for the UK.

It is also self-evident that the newly emergent middle classes across the globe will only need more of the world-class skills for which the UK is famous.

By the European Commission’s own admission, and backed up by IMF statistics, 90 per cent of global economic growth is expected to be generated outside the EU in the next 10 – 15 years. And here is where the fog of self-doubt should lift.

Regardless of whatever deal, or none, is reached with the EU, outside the Customs Union and the Single Market, the UK will be uniquely placed to continue to pivot flexibly towards the most income generating parts of the globe where the UK will have many advantages over its EU counterparts.

Unencumbered by our membership of the EU and its sloth-like decision making processes, we will have the freedom to build on our existing global trade by negotiating advantageous trade agreements with growth countries.

This, combined with the benefits of a common language across swathes of the globe and a common law legal system, puts us in pole position to make the most of opportunities for export growth beyond the borders of the EU.

Twenty five per cent of global GDP is created by English speaking countries. English common law is the most widespread legal system in the world with 30 per cent of the world population living within its jurisdiction.

The UK has a time zone allowing it to trade across the globe in a single day.

There is a wealth of opportunity for trade outside the EU, supported by strong global growth figures.

It is time to shift our focus away from the EU and towards Anglophone countries and beyond to make the most of these prospects.

The value of UK exports in goods and services to the other four “Anglosphere” nations (Australia, Canada, New Zealand and the United States) has grown by 53 per cent over the last ten years.

Where legal systems are at their most distinctive is in their attitude towards debt, credit and insolvency.

With English and American common law systems presiding over 40 per cent of world GDP, the influence of these economies over global markets is enormous.

A common perspective on debt, credit and insolvency and common legal and business frameworks makes common law countries a natural home for the UK to do business and vice versa, and increases likelihood of negotiating favourable trade deals as well as making the process of trading smoother.

Boris Johnson is right to argue that the “fog of self-doubt” should be lifted.

Underneath, we will see that business is already driving the UK into the global sphere and is ready to take advantage of all the opportunities for growth presented by our exit from the EU.

There should be no doubt that Britain has much to bring to the global market place and we should see Brexit for the opportunity that it is.