The expansion of the EU brings with it unprecedented opportunities for British business, but also some threats and the President of the British Chambers of Commerce, Isabella Moore, argues that UK companies need to wake up to both.
Accession will create the largest single market for trade and investment in the world (at around 500 million consumers, bigger than the USA and Japan combined). This will help to generate over 300,000 extra jobs across the EU and boost the EU ’s GDP by £1.75 billion. For UK exporters, the opportunities are already there. Candidate countries started to open up their markets and reform their economies in preparation for membership. Many of the barriers to trade are being abolished. Pan-European standards are being adopted. It is predicted that the economies of accession countries will grow faster than the EU average for several years after accession and this increase in spending power should boost demand for EU goods and services.
But, there are threats, too. The UK faces increased competition from the accession countries for inward investment and some sectors are likely to suffer more than most. The Czech Republic has already become Europe's most popular location for investment in the motor industry and, inevitably, the temptation for EU-based suppliers to move East will increase.
In order to maximise the opportunities and counter the threats, UK companies need to take action. That is where the UK Chambers of Commerce can help by organising a number of activities to encourage companies to learn about, make contacts and trade with these countries. Click on the country to learn more:
