This week I had the pleasure of welcoming the Scotch Whisky Association to the Parliament to highlight recent investments the sector has made. An iconic Scottish product, selling in markets all over the world. Last year Scotch rang up a record breaking £6 billion in international exports.
In the long run a modern economy succeeds or fails depending on how well it can compete internationally. I’m old enough to remember when the Balance of Payments was a key economic indicator, anticipated and pored over for what it said about the state of the economy.
The UK has had a consistent trade deficit now for more than 20 years – importing significantly more than it exports. And the fact that we don’t have the same focus on those trade numbers perhaps signifies that we’ve lost sight of the importance of exports. Scotland’s performance has been better – buoyed by energy and food and drink sales – but still lagging behind the performance of comparable countries.
READ MORE: Ivan McKee criticises Humza Yousaf over business reset plan
Better export performance means a greater inflow of foreign currency reserves. It creates well paid jobs and puts money in people’s pockets that helps support the domestic economy.
We know about our flagship exports industries, including Scotch. But other sectors are growing rapidly. Scotland’s world leading Life Science sector now exports more than £3bn annually. Likewise technology exports – both software and hardware – Scotland has global strengths in digital, photonics and satellites. Financial services, education and tourism are also a big part of the picture. International visitors – here to study or holiday – are a major export industry, likewise the international campuses of our universities and colleges.
Successfully competing internationally depends on a number of economic factors including productivity, investment and technology. But at the end of the day it comes down to businesses finding overseas customers and selling to them. Having the support to successfully close those deals is critical.
Headwinds – like the mistake that is Brexit, or global uncertainty – don’t make this any easier. But those challenges need to be overcome, and businesses are nothing if not resilient.
So when we talk about the Scottish Government’s network of international offices it’s important to recognise their critical role in promoting Scottish trade, and the huge value they bring to Scotland’s economy as a consequence. Alongside the work of Scottish Development International – the international wing of Scottish Enterprise – small teams located in strategic markets around the globe work to promote Scotland and grow our exports.
READ MORE: Scotland 'lagging behind' on taking in immigrants says MSP
Scotland also has a first class asset in our network of more than 1200 Global Scots and Trade Envoys. Spread across more than 100 countries these are experienced business people based in, or with an in-depth knowledge of an international market. And, most importantly, with a real commitment to helping Scotland succeed on the international stage. Giving their time and expertise for free to aspiring Scottish export businesses their advice is invaluable in helping new Scottish exporters find their feet in new markets. I had the pleasure of meeting many Global Scots during my time in government, and to a woman and man every one has the same message – ‘we’re here to help, give us more to do’.
The global reach of Scotland’s Chambers of Commerce, and the international presence of our Universities and Colleges, are a key part of the mix, all working together as ‘Team Scotland’. That network is invaluable and an excellent platform for Scottish international trade.
Trade deals can help smooth the way, and create an environment for success, but in a world where tariffs are, with a few notable exceptions, at historic lows their value is often around market access – removing the admin and regulatory barriers that hinder international sales.
And different types of businesses need different support. For well-established Scottish exporters it’s about looking to remove those trade barriers. For new entrants it’s as much about providing market intelligent, making introductions to potential customers and giving confidence to take that first steps into global markets. Trade missions often provide a great entry point for new businesses.
Everyone’s journey into export markets is different. Much of my own export success as a business owner was built on following my existing domestic customers into global markets and then expanding from there. International trade isn’t always as visible as other parts of the economy – compared to the sectors we see in our high streets on a daily basis. But it is our success in those global markets that underpins the rest of the economy.
So when it comes to understanding what’s important in securing our economic future let’s not lose sight of the critical importance of our exporting businesses, large and small, and make sure government and its agencies and partners continue to focus on supporting them.
Ivan McKee is a former business minister in the Scottish Government
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel