Trade

On Wednesday morning, the National Audit Office published a report on government efforts to increase UK exports. Under the coalition, foreign policy has acquired a greater emphasis on trade and investment. The government has two targets for 2020: to double exports to £1tn from £500bn in 2012, and to have 100,000 more companies exporting than was the case in 2011. Here is how the first one is going.  Read more >>

On January 1 1993, Czechoslovakia split into Slovakia and the Czech Republic. The two new states opted to keep a monetary union. Thirty-three days later that union collapsed. Over the next five years, exports from each country to the other quickly fell as a share of total trade. Economists cite this as a dramatic example of the “border effect”, the lack of trade and capital flows between two areas due to a territorial limit. In a paper released on Tuesday, HM Treasury suggests that it also provides a warning to Scots: they will be poorer if they vote for independence and for a formal border to be established near Hadrian’s Wall. Read more >>