Tata Steel - EU boosts UK trade

Tata Steel, which employs 1,500 people in the North East, has highlighted the UK's continued membership of the EU as an important factor in its future success.

In a submission to the government's review of Britain's relationship with the EU, Tata became the latest in a long line of major North East employers to warn that an EU exit would leave the UK isolated and weakened.

Tata said:

"In revenue terms approximately 50% of the steel Tata Steel produces in the UK is sold into continental Europe.

"As the largest single market in the world, the EU has a strong bargaining position in trade negotiations. Conversely, on its own, as a relatively small market, the UK would not be as attractive for third countries to negotiate with and would not have the same bargaining power.

"Outside Europe other countries are becoming more integrated and forming other trading blocs, and there would be a danger that the UK would find itself isolated and without the necessary power to successfully negotiate trade deals.

"The UK is very successful in attracting investment from non-EU companies setting up facilities in Europe, and one of the selling points is access to the EU internal market."

Angelika Schneider, the Lib Dems' lead North East Euro candidate, commented:

"As Tata make clear, being part of the world's biggest trading bloc means we're able to negotiate much better deals with other countries than we could manage on our own.

"And that makes us a more attractive destination for companies looking to invest. If we were to leave the EU it would be much tougher for companies based here to compete with continental or global rivals operating under more favourable trade terms.

"Many thousands of North East jobs rely on us staying in Europe, securing access to the Single Market and opening up trade opportunities for local businesses."