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V O L . X X I I I N O. X M AY 1 , 2 0 1 7 20 G L O B A L E C O N O M Y F O C U S While Canada is Maine's top trad- ing partner in overall exports, Germany is second and the UK third. But when it comes to six-digit code trade, Canada still is at the top and Germany second, but the UK is ninth. " e impact to Maine for Brexit could be very little, especially in the six- digit category," Tripodi says. "But Brexit also opens opportunities for Maine, for example, greater demand for civilian airplanes. Maine has strong products in paper, paperboard, seafood, civilian aircraft, vaccines for veterinary medi- cine, gas turbine parts, among others. e report card for Maine is evolving, and it's a positive one." Freer trade after Brexit? Consul General Cross sees new potential once the UK is free from EU regulations, and says it could strike up its own favorable deals directly. One example, she says, may be lobster trade. e New England, and especially Maine, lobster fi sheries are concerned about a new trade deal under discus- sion called the Canada-European Union Comprehensive Economic and Trade Agreement, or CETA. e deal would eliminate tariff s on Canadian lobster exports to Europe, while U.S. tariff s would still range from 8% for live lobster to 20% on processed or cooked lobster. "As soon as the UK is separate from EU regulations, we may be able to come to a better agreement with Maine on lobsters," she says. "Maine is our fourth-largest export market [in the United States]. It is defi nitely a contender [for UK trade]. Maine is a desirable place to go on holiday, plus it has good food and drink." And for her, trade takes on a per- sonal side as well. She and her hus- band, Phil Saltonstall (his ancestor, Sir Richard Saltonstall, led a group of English settlers to Massachusetts in 1630. Some of the Saltonstalls subse- quently returned to the UK, but it is a well-known family name in Boston), have their own brewery in the north of England in Yorkshire. When they were in Portland, they got a taste of the local craft brew scene at Rising Tide. "My husband Phil is exporting U.S. cask beer to the UK. We usually get only keg and bottled beer," she says. "He started in Massachusetts and hopes to get into Maine. e East Coast of the United States is seen as a thriving craft beer scene that is at least fi ve years ahead of the UK." One thing Cross wants to emphasize at Trade Day 2017 is that even though Brexit, which started March 29 and will continue for at least two years, may cre- ate uncertainty, the UK is stable and is the fi fth-largest economy in the world. Colby's Yoder says one reason UK Prime Minister eresa May recently moved to have the UK national election sooner is to "make sure there's a strong sense of legitimacy with Brexit, a sense of continuity and stability. It's about shoring up support. It's a public relations issue." Cross says that while trade with EU countries may decline post-Brexit, she expects it to increase with the United States, and to increase the already robust trade with Maine. "We'll direct more resources toward the United States and less toward the EU," she says. "Maine in some ways is a hidden gem. In Boston you don't hear people talking about aerospace, but Maine exports $20 million in aerospace goods to the UK." Cross also expects the fi nancial services industry to be a positive story post-Brexit. She points to fi gures from the British Embassy in Washington, D.C., fi nding that the UK is a major export market for Maine's goods and services, which in turn support 1,500 Maine jobs. UK-based fi rms are among the leading foreign investors in Maine. ere were 23 UK subsidiaries in Maine in 2014 employing 2,100. In 2016, $56 million worth of Maine goods and $138 million in services were exported to the UK. at compares to $53 million in goods and $123 million in ser- vices in 2014. Since 2009, goods exports grew 69% and services 48%. Maine goods exported to the UK include $20 million in aerospace and parts, $3.3 million in converted paper products, $3 million in miscellaneous manufactured commodities, $2.4 million in pharma- ceuticals and medicines and $2.3 million in preserves and specialty foods. Among services exports, travel tops the list at $55 million; followed by $14 mil- lion in miscellaneous fi nancial services; » C O N T I N U E D F RO M P R E V I O U S PA G E THE MAINE MANUFACTURING SUMMIT JUNE 6, 2017 Sponsored by: Media Sponsor: T H E S U M M I T W I L L F E AT U R E : The Business Showcase, where five select business will feature innovative technology products made by their Maine companies. Business exhibition & national guest speakers Manufacturing recognition awards: Manufacturing Innovation Award Manufacturer of the Year New Manufactured Product of the Year REGISTER TODAY! MAINEMFG.COM/E VENTS 8am–12pm / Franco Center — 46 Cedar Street, Lewiston The event will bring together approximately 200 companies from across all manufacturing sectors and their respective trade associations to discuss industry trends, issues, and growth opportunities for the future. As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, As soon as the UK is separate from EU regulations, we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with we may be able to come to a better agreement with Maine on lobsters. — Harriet Cross Britain's Consul General to New England

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