New export strategy right to encourage openness and prioritise growth
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IEA reacts to the Department of International Trade's new export strategy
“The Government is right to prioritise growth in international trade. Increased openness to both exports and imports allows countries to benefit from economies of scale, more specialisation and competition, and the greater sharing of knowledge. Consumers gain from lower prices, higher quality, and more choice.
“The 35% target for exports as a share of GDP looks arbitrary and suggests that exports are an end in themselves, rather than a means to pay for more goods and services, including imports, to be consumed in the UK. We should also be wary of attempts to pick winners and direct the economy by subsidising one sector over another.
“Nonetheless, the Government does have an important role to play in creating the conditions under which exporters can thrive. As well as raising awareness of the opportunities and financial support available to exporters, the Government should aim to reduce the burdens of tax and regulation for all businesses.”
Notes to editors:
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The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems and seeks to provide analysis in order to improve the public understanding of economics.
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