The research, undertaken by the Centre for Cities think tank, found the EU was the main export market for 61 of the UK's 62 cities, while close to half of all British exports from cities (46 percent) go to EU markets, three times more than the exports to the US, the second biggest export market.
Underlying the importance of the EU market to Britain, the Cities Outlook 2017 found that two-thirds of UK cities (41 out of 62) trade at least half of their exports to the EU, while even Derby — the country's least EU-dependent city — still sold a quarter of its exports to the bloc.
British cities export 46% of their goods and services to the EU. Find out more in #CitiesOutlook: https://t.co/tr2foTfHCk pic.twitter.com/DkE7tOcxkK
— Centre for Cities (@CentreforCities) January 30, 2017
The report said British cities would have to "dramatically increase trade" with other international markets if it was to compensate for a downturn in EU exports.
"To make up for a 10% decrease in exports to the EU, British cities would have to nearly double exports to China, or increase exports to the US by nearly a third (31%)," the report states.
'Global Britain': EU Trade Still 'Critical'
The statistics highlighting the strong UK-EU export relationship have been revealed amid concerns over the government's Brexit policy, with critics concerned the UK's expected exit from the European single market and possible exit from the customs union could deliver a heavy blow to British cities and their economies.
While Prime Minister Theresa May set out her blueprint for a "global Britain" as part of plans to expand the country's trade relations, Alexandra Jones, chief executive of Center for Cities, said a good relationship with the EU will be crucial to the UK's long-term economic success.
Most British cities sell more of their exported goods to Europe than anywhere else in the world — @CentreforCities
— Alan Jones (@AlanJonesPA) January 30, 2017
"Securing the best possible EU trade deal will be critical for the prosperity of cities across Britain, and should be the government's top priority as we prepare to leave the single market and potentially the customs union. While it's right to be ambitious about increasing exports to countries such as the US and China, the outcome of EU trade negotiations will have a much bigger impact on places and people up and down the country," Jones said.
This comes as Mario Giro, Italy's deputy foreign minister, warned that tense Brexit talks could lead to an "economic Cold War" between London and Brussels.
I will not vote to destroy jobs and prosperity in #Exeter & the wider South West with a hard Tory #brexit. I will vote against #Article50.
— Ben Bradshaw (@BenPBradshaw) January 24, 2017
Amid speculation over what type of deal the UK will seek, Jones warned the government against trying to cherry-pick particular industries to keep limited access to the single market:
"It's also important that the government aims to reach trade agreements covering as many sectors as possible, rather than prioritizing deals for high-profile industries based in a small number of places. Broad trade agreements for all goods and services will help every city to build on its exporting strengths."
