EDINBURGH is the Scottish city least reliant on the European Union, but 37 per cent of its exports still head into the single market.
In Glasgow, 40 per cent of its exports are into the EU, while Aberdeen is most reliant on the free trade bloc, with 61 per cent of its exports heading to EU countries.
The findings are published today in the Cities Outlook 2017 report from think tank Centre for Cities, which urged the government to prioritise a trade deal in its Brexit negotiations.
Dundee, the only other Scottish city included in the report, sent 51 per cent of its export to the EU.
The report, which uses data from 2014, showed that 48 per cent of exports from 62 cities were to EU countries. The Centre said this highlighted that a trade deal with the EU must be the government’s top priority.
A separate survey from the British Chambers of Commerce found that UK companies remain committed to strong trading relationships with European customers and suppliers in spite of the Brexit vote.
The International Trade Survey, which collated the responses of almost 1,500 people in business, found three-quarters of respondents currently sell (76 per cent) and source (73 per cent) goods and services in the EU market.
The Cities Outlook report shows that British cities would have to dramatically increase trade with other international markets to compensate for a downturn in exports to the EU. For example, to make up for a ten per cent fall in exports to the EU, cities in the UK would have to nearly double exports to China, or increase exports to the US by nearly a third.
The report also found that 15 per cent of exports from Glasgow were into the US and three per cent into China. For Edinburgh, 17 per cent headed stateside and two per cent to China.
Aberdeen exported 14 per cent to the US and four per cent to China.
The value of total exports per job in Aberdeen is £18,100, ahead of Edinburgh at £14,990, Glasgow at £12,170 and Dundee at £9,940.
Commenting on the findings, Alexandra Jones, chief executive of Centre for Cities said: “Securing the best possible EU trade deal will be critical for the prosperity of Scottish cities, and should be the UK Government’s top priority as we prepare to leave the single market and potentially the customs union.”
She added that while it is right to be ambitious about increasing exports to countries such as the US and China, the outcome of EU trade negotiations will have a much bigger impact.
She also said it was important that the government negotiates a trade agreement covering as many sectors as possible, rather than prioritising deals for high-profile industries.
“The UK faces a major challenge in boosting productivity and wages, and increasing the value and volume of city exports will be crucial in addressing those issues,” she said.
“National and local leaders need to consider how they can make cities more attractive to exporting firms. Improving skills and infrastructure across the UK will be vital in this, and should be a central part of the government’s industrial strategy.”
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