The North East has always performed strongly in the exports sector due to the nature of its business stock and its proximity to popular trade routes. The majority of exports from the region go to the EU, although the dependence on the European market has diminished as the influence of the new emerging economies grows.

The developing economies are presenting both problems and opportunities to the North East. Large producers such as Brazil, Russia, India and China are increasing competition and lowering prices in the exported goods market, but their consumption is rising at a similar rate. If North East companies can effectively access these new markets, they can be extremely lucrative. Without some kind of action these emerging economic superpowers will erode the region’s advantage in the exports sector, mainly due to their superior natural resources. It is important that any company wishing to export is well informed on the markets which they are attempting to enter, allowing them to better target the sectors where they are best placed to compete.

The role of regional policy in this issue may be to aid the transfer of best practice between companies who are attempting to access these new markets and others who are looking to compete in the global export market.

Fact File

• Total value of North East goods exported in 2004 was £8,101m an increase of 17% since 2002.
• EU market now accounts for 62% of total goods exports, down from 73% in 2002.
• The mineral fuels and the machinery and transport markets have been the most improved sectors. Whilst the chemical sector has stagnated since 2002.
• Levels of exports as a percentage of total GVA are one of the highest in the UK and the rates for imports is one of the lowest.
• Holland and Germany are the key markets for NE exports in the EU. The USA is still the key non-EU export market, but China, Australia, Norway and Russia also account for significant levels of NE exports.
• Between 2002-2004, UK exports increased by just 1.3%, well below the NE’s figures.
• Between 2002-2004, the UK has increased trade with the Asian/Oceanic economies by 16%, compared to the NE’s increase of 53%. 
• The total level of world exports increased by 21% in 2004 alone.
• The EU is now the leading exporter, of both goods and services, in the world markets, with an 18.1% share of total world goods exports and 27.8% of all service exports. It is also the leading importer of goods.