To ask the Scottish Government what overseas visits the Minister for Trade, Investment and Innovation made between January and April 2019.
I made 4 overseas visits in 2019 between January and April: Warsaw, Poland; Milan, Italy; Oslo, Norway and a combined visit to Stockholm, Sweden and Copenhagen, Denmark.
POLAND
I visited Warsaw 23-24 January 2019 to participate in a two-day trade and investment programme. Poland is an emerging market of interest for Scotland in terms of T&I, prompting SDI to employ a consultant to undertake market analysis, with SG Trade Envoy, Martyn O’Reilly, as well as DIT Poland and the British-Polish Chambers of Commerce (BPCC) facilitating and developing a number of commercial and stakeholder introductions.
Poland, one of the fastest growing economies in Europe, has been one of Scotland’s strongest growth markets in the last 10 years. Exports of Scottish goods and services to Poland have almost tripled between 2006 and 2016 from £110 million to £325 million (Export Statistics Scotland 2017), which works out to around 11% growth each year.
My two-day visit was built around a programme of business engagements and policy bi-laterals designed to help build understanding of how to develop the T&I opportunity in Poland and gain a more detailed understanding of the market.
The visit gave me an opportunity to promote trade and investment through:
1. the delivery of a keynote speech at the British-Polish Chamber of Commerce (BPCC) Annual Burns Supper facilitated by Martyn O’Reilly, SG Trade Envoy;
2. a multi-sector Business Breakfast Roundtable facilitated by SDI, Martyn O’Reilly, DIT Poland and BPCC;
3. government meetings:
- Polish Energy Minister - Krzysztof Tchórzewski and Director at Department of Renewable Energy - Andrzej Kazmierski;
- Head of Offshore Wind Parliamentary Committee - Zbigniew Gryglas;
- Undersecretary of State, Ministry of Entrepreneurship and Technology - Tadeusz Koscinski;
- Dr Krzysztof Senger, Interim President of the Board, Polish Investment & Trade Agency (PAIH).
The visit allowed Scottish Government to explore opportunities in various sectors: Premium Food and Drink (whisky & red meat in particular), Energy, Big Data, FinTech, Tourism, Textiles, BIM, eHealth, Education, eMobility. It also opened up discussion around partnership with Scottish and Polish universities (e.g. data industry, R&D).
I also met with HMA Jonathan Knott , Jason Rheinberg, Charge d’Affaires and the DIT Prosperity and Energy Team at the British Embassy in Warsaw to learn about the Embassy’s priorities.
Although the focus of this trip was increasing trade between Scotland and Poland, I reinforced the Scottish Government’s continued opposition to Brexit and emphasised that Scotland remains open for business as an outward-facing European nation with economic, political and cultural connections with Poland.
ITALY
I visited Milan 10-12 February 2019 to participate in a two-day trade and investment programme. Italy is one of Scotland’s top international export destinations. Scottish exports to Italy were estimated to be worth £760 million (2.3% of all international exports) in 2017, an increase of £55 million (7.6%) from £710 million in 2016, ranking the country 10th in terms of export value (Export Statistics Scotland 2017). Furthermore, there are 45 Italian owned enterprises in Scotland operating at 60 local sites, employing 3,180. To reinforce the potential for additional growth, SDI has a market specialist now working alongside DIT colleagues in the British Consulate Milan.
My two-day visit was built around a programme of business engagements, supported via a strong partnership with Borsa Italiana (Italy’s only Stock Exchange and subsidiary of the London Stock Exchange). It has deepened some already strong exporter and inward investor relationships. I:
1. hosted a roundtable with senior leaders and economists, including Raffaele Jerusalmi, CEO Borsa Italiana and Chair of ELITE;
2. hosted a roundtable with Italian SMEs and Luca Peyrano, CEO of ELITE;
3. attended individual company meetings with:
o Hawico, a Scottish cashmere company based in Milan;
o Harris Tweed Hebrides;
o existing investors: Guala Closures Group, Versalis and Campari Group;
4. attended a campus tour of Talent Garden, Europe’s leading innovation platform and co-working network for digital innovation.
In Food & Drink, Textiles, Retail, Tourism, Technology Scotland has a ‘Premium Brand’ offer that resonates with both Italian business and sophisticated Italian consumers; this was considered at a meeting with Stefano Della Valle, COO Central Retail Corporation, La Rinascente. The visit also opened potential for collaboration with World Manufacturing Forum and potential contribution by SG on the focus of its next edition: Promote Education and Skills Development for Social Well-being, which I explored at a meeting with Mr Alberto Ribolla, Chairman of the WMF.
I also met with Tim Flear, British Consul General in Milan as well as Andrew Mitchell, UKG Trade Commissioner for Europe to learn about their respective interests and explored areas of future collaboration.
This visit provided me with an opportunity to talk directly to Italian investors in Scotland, as well as Scottish exporters with significant operational commitments in Italy. I also had the opportunity to build engagement with some highly influential stakeholders in the Lombardy region, powerhouse of the Italian economy. As SDI has been active in the Italian market for the past year, my visit allowed us to build market traction and credibility around the principle that the SG views Italy as key trading partner and ally in the EU now and post-Brexit.
NORWAY
I visited Oslo 17-19 March 2019, which coincided with a 5-day SDI multisector mission to Norway and Finland. Scottish exports (goods and services) to Norway were estimated to be worth £1.0 billion in 2017 (Export Statistics Scotland 2017). Though dropping one place from 2016, this still ranks Norway as Scotland’s 6th largest export destination. Furthermore, there are also c. 110 Norwegian owned enterprises in Scotland (March 2018 - latest available figures) operating at 220 local sites, employing 5,870 with a turnover of £2.23bn.
The one-and-a-half day visit was built around a programme of inward investor, exporter, and key stakeholder engagements. In terms of sector focus, links in the Energy/Oil & Gas industries and Aquaculture/Salmon farming are amongst our most important, hence roundtable engagements with their senior representatives to deepen these relationships. I:
1. hosted a business lunch with key energy investors and partner organisations;
2. hosted a business dinner and networking event with key investors into the Scottish fish farm industry;
3. held individual company meetings with:
- EY, which provided an opportunity to meet a key senior level stakeholder and gain non-governmental insights into the Norwegian market;
- Equinor Technology Ventures, to explore the potential for further investment in Scottish technology companies and collaboration with Scotland’s innovation centres and universities within oil and gas and renewables;
- Innovation Norway, which opened a dialogue regarding potential engagement and co-operation between universities and research centres in Norway and Scotland on engaging young people in science and engineering disciplines.
This visit provided SG with an opportunity to contribute to retaining the confidence of Norwegian investors in Scotland and build confidence within Scotland’s exporter base, offering support to companies who are considering entering a key European market (and EEA member) and help mitigate the risks of reduced trade and growth with the EU. During the visit I spoke directly to Norwegian investors in Scotland, as well as to Scottish exporters, opening up new market opportunities.
I also met with HMA Richard Wood, which allowed me to formally recognise the importance of the Ambassador’s support for Scotland and Scottish companies. The meeting was an opportunity to promote development of the Scottish Government’s Arctic Policy Framework.
I highlighted that despite the uncertainty over Brexit, Scotland remains open for business and discussed the many ways in which Norway and Scotland can work together over the coming months and years to help one another grow, whilst continuing to develop our economic, political and cultural connections.
SWEDEN and DENMARK
I visited Stockholm and Copenhagen on 9-11 April 2019. Both Sweden and Denmark feature within the Export Growth Plan as Priority 1 markets. Our business links are solid: Scottish exports to Sweden grew 14% to £585 million in 2017 (Export Statistics Scotland 2017). There are 80 Swedish owned enterprises in Scotland employing 6,360 with a turnover £1.03bn. Scottish exports to Denmark were estimated to be worth £875 million in 2017, down 8.7% from 2016 (Export Statistics Scotland 2017). There are 70 Danish owned enterprises that operate in Scotland, employing 7,540 with a turnover of £1.8bn. As part of SDI’s doubling of headcount in the EU, Copenhagen has been developed as hub to service our increased interest in the bloc.
The two day visit was built around a programme of inward investor, exporter, and key stakeholder engagements. In terms of sector focus, links in the Food & Drink, Life Sciences, Energy, Technology and Engineering, Financial and Business Services are amongst our most important. The visit brought to light air connectivity issues as a trade challenge; there are limited flights to Sweden and Denmark from Edinburgh and none from Glasgow.
This visit was an opportunity to foster trade and investment relationships with some of our closest trading partners and to share plans for maintaining and growing export performance in respective countries, as described in the Export Growth Plan. It provided insight into the current state of the Swedish and Danish economies, its drivers and the international perspective of its companies. Learning more about the economic systems of the region was valuable. Meetings included:
1. Vattenfall’s future growth plans for Scotland, its commitment to EOWDC (European Offshore Wind Deployment Centre) and the collaboration agreement with ORE Catapult. I welcomed further dialogue regarding Scotland's energy and district heating plans.
2. Edrington: discussed the Group’s international export strategy, and the regulatory environment around the supply and sale of alcohol in the Nordics.
3. Copenhagen Infrastructure Partners: continued investment in Beatrice Wind Farm and the local community around Wick.
4. Other individual company and stakeholder meetings included: RBS NatWest, Confederation of Swedish Enterprises, Corporate Health and Standard Life Aberdeen. I also hosted a roundtable with Scottish stakeholders.
In line with SG ‘good global citizen’ engagement with international partners, contributing to the UN’s Sustainable Development Goals, I met with UN City officials identifying future collaboration opportunities with UNDP, UNCIEF, and UNOPS.
I also met with HMA David Cairns and Dominic Schroeder (Sweden and Denmark respectively) which allowed me to formally recognise the importance of their support for Scotland and Scottish companies. The meeting was an opportunity to promote development of the Scottish Government’s Arctic Policy Framework.