by Malcolm Hyde, regional director CBI South East

Britain's relationship with Europe will be a major theme of 2013.

In truth, it's not been a subject business has always been keen to engage with, evoking as it does such staunchly entrenched interests on all sides.

So some may have been surprised when our director general John Cridland used his New Year message to call for a new trading agreement between the European Union and the United States.

There shouldn't have been surprise – carving out a new trading role in the world involves improving access to international markets. And using the EU to do the heavy lifting is in our long-term economic interest.

Home as it is for many companies with a US parent and so many more who look directly to Europe and the US as the destination for exports, for this corner of the UK the importance of Europe cannot be overstated,
Securing ground-breaking free trade agreements must be a priority, alongside eliminating tariffs, liberalising goods and services, harmonising regulation, promoting investment and setting benchmark standards for trade.

For example, while the EU and US have relatively open economies, the transatlantic chemicals industry pays more than 500m euros in Customs duties each year.

"Unseen" barriers such as these cost businesses across a range of industries, impeding the level of trade possible for our companies. One study identified up to 122bn Euros of potential gains being possible for the EU every year, if those regulations that could plausibly be aligned, were.

The UK must be present to push these trade talks to their conclusion and for our businesses to use the EU as a launchpad to project themselves globally and as a basis on which to attract investment.

In rebalancing our economy towards greater exports, particularly in fast-growing emerging economies, we must use our position in Europe by first acknowledging we pack a bigger punch in securing trade deals inside the EU than outside. Our trade partners want access to a market of 500m customers across the EU, not just 60m on our own shores.

The UK has ensured its values of free and open trade have been at the heart of Europe over the last 40 years, helping to create one of the biggest successes of the European Union – the Single Market. It's essential for our region we stay at the table in Brussels.