Speech delivered by Lord Davies, Minister of State for Trade, Investment and Small Business, at the Expansión Business Breakfast

I am delighted to be visiting Spain and may I start by thanking my hosts for the very warm welcome I have received. I like to think it is a sign of the friendship that exists between our two countries.

Of course, relations have not always been as cordial as they are today. You sent us the Armada; we sent you Posh and Becks! Fortunately, we have managed to put all that behind us and now things couldn’t be more different.

Today our countries enjoy good relations and strong bonds, which connect our people and enrich our lives, both culturally and economically. Spanish is growing in popularity among British schoolchildren as they choose which foreign languages to learn. It is now the second choice, after French, having overtaken German in the past three years.

This makes perfect sense – and not just because Spanish, like English, is a world language that can open many new doors. More and more Brits are embracing the Spanish way of life. Over 16 million British people visit Spain each year; and 1 million properties here in Spain are owned by Britons.

Our economic ties are also bringing us ever closer together: around 700 UK companies have operations here in Spain. I must admit that I was surprised – and impressed – to learn the true extent of our economic relationship. Britain exports twice as much to Spain as we do to China, and three times as much as we do to India. In fact, Spain is our seventh largest export market overall – worth £15.7 billion on latest figures [2008]. In recent years we have been the second largest foreign investor in Spain. In 2008 alone UK investment here stood at £1.6 billion.

But this is not a one-way relationship by any means. Many Spanish firms are also finding new markets and investment opportunities in the UK. Spain has consistently been one of our top foreign investors in recent years – number one in 2006 with Ferrovial and Telefónica. And this country is our eighth largest source of imports, providing goods and services worth nearly £21.5 billion according to latest figures.

I had no idea that our economic relationship was already so deep and broad. I am sure it will come as a surprise to many British and Spanish businesses – and politicians – too. It should encourage our businesses, and our countries, to cooperate even more closely, and combine our firepower to compete with India, China and the other emerging economies.

But I think it also vividly illustrates that, even in a globalised economy where new markets and sectors are developing all the time, it would be foolish for any company, or any government, to overlook the opportunities on our doorstep.

The strong relationship between Britain and Spain is already delivering a huge range of benefits to our businesses and our economies. This event is a sterling opportunity to strengthen our historic friendships and forge new partnerships for the future. Because together we can create new jobs, business and wealth in both our countries.