Investment in Scotland
One of the reasons that so many Scottish jobs are linked to EU membership is because the EU is not just a free trade zone, but also a free investment zone.
Scotland has been more successful in attracting commercial investment from EU member states than any other part of the UK. This is not investment from the EU itself, but from companies in other EU member states who choose to put their money into our economy. Around 4,600 European businesses based in Scotland contributed around £15.8 billion in Gross Value Added (GVA) to the Scottish economy in 2013.[1] Without the legal certainties of EU membership, all this investment would be under question.
[1] ‘The Impact of EU membership in Scotland’, SPICE, October 2015.
[2] ‘The Impact of EU membership in Scotland’, SPICE, October 2015.
[3] £1,225 to every individual in the UK: ‘Our Global Future: The business vision for a reformed EU’, Confederation of British Industry Brief’, November 2013.
Trade and Jobs
This is one of the most important reasons Scotland should remain in the EU. EU trade means real jobs in communities up and down Scotland. The Scottish Government set this figure at around 300,000 jobs.[1]
Yes, alternatives to EU membership could be found but the bottom line is simple: Scotland needs to remain a member of the single market and, if we want any say over the rules that govern that market, we need to be in the EU. The EU is one of the largest single markets in the world[2]. In 2014 alone the EU’s exports of goods was equivalent to 15.0 % of the world’s total despite only being home to 6.9% of the world’s population.[3]
Scotland takes full advantage of its EU membership. Just under one half of all trade (43%) from Scotland was with other EU member states in 2015, with a total value of £12.3 billion.[4]
All this trade, and all these jobs, are at risk by removing Scotland from the EU.
[1] ‘The Benefits of Scotland’s EU Membership’, The Scottish Government, 2015.
[2] GDP (PPP) Data, International Monetary Fund, April 2017.
[3] ‘Measuring the EU’s economy’, European Commission, 2017.
[4] ‘Export Statistics Scotland’, The Scottish Government, 25 January 2017.
[5] ‘Export Statistics Scotland’, The Scottish Government, 25 January 2017.
The Food and Drink Sector
Furthermore, the EU can use its clout as one of the world’s major trading blocks to secure advantageous free trade deals, providing further export opportunities, such as to Vietnam and South Korea, and help to protect our quality branded products like Scotch Whisky. 500 million consumers make a better argument for a free trade deal for our global partners than 60 million. Plus, the UK has received £34 million in EU funding in recent years to promote its dairy and quality meat products abroad.[6]
We have been part of the EU for so long, many have forgotten that tariff free trade is a very real benefit to us. Norway charges a tariff as high as 344% for beef steaks for imports coming from countries other than the EU[1]. Food and drink products are Scotland’s highest grossing export (16.8% of exports)[2], and Europe remains the biggest market for that, buying 70% of our food exports.[3]
73% of UK agri-food exports go to other EU member states, which includes 38% of all UK lamb.[4] Maintaining open access to markets is vital considering that the UK imports 40% of its food.[5]
The EU’s geographical indication scheme for food products also gives branded protection to iconic Scottish produce across Europe, from Scotch Beef and Lamb to Arbroath Smokies to Stornoway Black Pudding, giving a real premium to our quality products.
From the Scottish Whisky Association.[7]
[1] Trade Market Access Database, European Commission.
[2] ‘Export Statistics Scotland’, The Scottish Government, 25 January 2017.
[3] ‘Food and drink exports continue to grow ’, The Scottish Government, 18 June 2017.
[4] ‘UK’s Farming Relationship with the EU’ NFU, 2015.
[7] ‘Facts & Figures,’ The Scottish Whisky Association, 1 May 2015.