EU membership

Trading relationships between Slovenia and the UK have not fundamentally changed with membership of the EU and the single market. When producing exports destined for the other country, both Slovenia and the UK have been using less and less input from other EU member states (e.g. materials, components, and technology, also known as 'foreign value added'). From 2000 to 2014, the share of EU-sourced value added in Slovenian exports to the UK decreased slightly from 23.7 to 21.8 percent. As for the share of EU-sourced value added in British exports to Slovenia, it has been falling continuously since 2011, from 11.0 per cent to 9.8 per cent in 2014.

Potential areas of growth in trade

Slovenian exports to the UK should grow as the UK represents an attractive marketplace for Slovenian goods. Slovene businesses have untapped potential across several product categories where the UK market has provided a thriving destination for exports from smaller countries. For instance, beverages, spirits, wood and wooden products, leather goods, gastronomic products, pharmaceuticals, glass and glassware and dairy produce all have promising opportunities in a post-Brexit UK.

UK-based businesses are well-equipped to provide specialist services and support the Slovenian privatisation process. Furthermore, considering the challenges Slovenia is currently facing in upgrading its banking and financial sectors, the City of London is ideally positioned to help.

Investment

Labour productivity of UK-owned companies in Slovenia is outstanding, well above the Slovenian average but also outperforming other foreign-owned companies in the country. It is therefore advisable that Slovenia attract more FDI from the UK.

It also suggests Slovenian businesses should consider investing more in the UK. The highly competitive British economy, with its multiple opportunities and specialised niches, is an ideal place to help Slovene brands launch globally.

The whole report is available at http://www.bscc.si .