RISING demand from Europe saw Scotland rack up £2.4 billion more in exports last year, figures show.
Trade with EU countries has risen by 4.5%.
Figures released by the Scottish Government yesterday – which do not include oil and gas receipts – show firms here did £16.1bn of business with the bloc in 2018, making this our fastest growing overseas market.
To put that in perspective, overall export growth across all markets – including the rest of the UK and international regions – was 2.9%.
Inside the EU, France was the biggest fan of Scottish products, buying £3bn worth and overtaking the Netherlands.
Third placed Germany was responsible for £2.5bn of deals.
The total figure for all goods and services sold outwith Scotland is £85bn.
Finance Secretary Derek Mackay said that proves “high quality Scottish products” are in demand.
However, he said tomorrow’s Brexit landmark will begin a period of unprecedented change that could derail progress by producers.
READ MORE: Scottish foods sold to EU may have 50% price hike after Brexit
Unveiling the economic results, he stated: “Significantly, they show that exports to the European Union grew at a faster rate than those to the rest of the UK or to other international markets. That demonstrates the growing value of the EU to Scotland’s exporters.
“On Friday Scotland will be taken out of the European Union against our wishes, removing us from the world’s biggest trading bloc.
“That threatens to cause significant damage to the Scottish economy, and poses particular problems for exporters, making it harder for us to reach our ambitious target of international exports being 25% of GDP by 2029.”
However, trade with other parts of the UK was worth more to Scots firms than EU deals.
A total of £51.2bn of goods and services went to England, Northern Ireland and Wales in 2018, up £1.2bn on the previous year.
The UK market accounts for as much as 60% of sales to other countries.
Scotland Secretary Alister Jack said that proves why independence is a bad idea. He said: “The Scottish Government’s own figures show that Scotland’s most important trading partner is the rest of UK – worth more than three times that of trade with all 27 EU countries combined. This demonstrates, once again, that our Union is absolutely crucial to supporting jobs, businesses and prosperity across Scotland.
READ MORE: Brexit: Scotland Food and Drink boss gives Europe price warning
“That is why we are against the First Minister’s demands for another independence referendum, which would put a hard border between Scotland and the rest of the UK. We will instead make 2020 a year of opportunity and growth for all parts of our country.”
The latest results confirmed continued growth for the food and drink sector, which made sales worth £6.3bn and achieved a 7.1% increase.
Most of this – an estimated £4.7bn – was from whisky. And the USA remained Scotland’s biggest overseas trading partner outside the EU, buying products worth £5.5bn.
In the same morning, Holyrood’s cross-party Finance Committee heard how weaker-than-average tax revenues will hit Scotland’s block grant. Mairi Spowage, deputy director of the Fraser of Allander Institute (FAI), said the Scottish Government’s budget will grow by less than 1% in real terms for the next year because of overestimated income tax revenue in previous budgets.
READ MORE: Anthony Salamone: Scotland must embrace the euro
The body expects a 2.1% increase when Sajid Javid sets out his plans. But, ahead of the Scottish Budget next week, FAI economists warned of “challenging” spending decisions because of negative income tax reconciliations.
Less tax has been raised in Scotland than forecasts had suggested and Spowage said “many moveable parts” including Brexit and UK tax levels could change the picture, stating: “We don’t think that the risks are as great as some are making out, but it’s certainly a sub-optimal situation to be in.”
The Scottish Government said: “Brexit remains the biggest threat to Scotland’s economic prosperity.”
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