British Chambers of Commerce (BCC) conducted a joint survey with DHL Express. It highlights that any kind of barrier to trade affects most firms while overcoming EU challenges recently has allowed some to expand into new markets.
Nearly half (48%) of the businesses surveyed stated costs and disruption as the biggest obstacles to exporting, followed by tariffs (48%), and customs processes (47%). Around 1000 UK businesses participated in the survey including 92% SMEs. Additionally, 37% of firms cited political, social, economic, or environmental uncertainties. And, 41% of enterprises identified regulatory concerns including product certification as trade barriers.
Only 9% of firms mentioned no barriers to exporting in the survey.
Another barrier to the rise of global sales is companies not using Free Trade Agreements (FTAs) for engagement. 79% of businesses (four out of five) did not analyse what they could require from a trade agreement with significant overseas markets. For UK exporters, this decreases marginally to 69 per cent.
However, businesses want easy and quick access to new markets with straightforward trading journeys. For better trade between the UK and other countries in the future, more than half (54%) of respondents believe smoother customs processes should be a top priority. Lowering tariffs (42%) and reducing technical barriers (35%) follow this.
Nearly two-thirds (61%) of UK exporters to the EU claim they are able to comply with the terms of the UK-EU Trade and Cooperation Agreement (TCA). And, 20% can’t comply.
Overcoming the TCA’s obstacles, however, has given some enterprises the chance to expand into new areas.
9 per cent of exporters to the EU who are certain they can meet the TCA criteria report that as a result, they are now trading with new non-EU markets. An additional 9 per cent indicate they will now give it a thought in the future. This demonstrates that trade brings new opportunities for companies, particularly those who exhibit resilience in the face of difficulties.
Head of Trade Policy at the BCC, William Ben said, “Our findings put a spotlight on what traders have as real priorities for UK trade negotiations with partners across the globe, and other trade policy developments. SME exporters in the UK have several concerns including faster customs processes, removing technical barriers to trade, tariff reductions, mutual recognition of professional qualifications, focused support for SMEs’, and easier labour mobility.”
“However, for traders exporting to the EU reduced hassle, efficiency, and speed are even more at the forefront of their minds. The BCC has the plan to cut red tape on UK-EU goods movements. We also have ambitions to boost UK exports across our key global markets through new Single Trade Window developments and trade negotiations.”
“While there are challenges currently facing exporting businesses, there are also of course many opportunities. It’s crucial that in the coming years, SME exporters working with trusted logistics partners feel the significant benefits of global trade as we hopefully see the removal of barriers and the opening up of new international markets.”
Ian Wilson, DHL Express UK’s CEO, Ian Wilson said that the last two years have been enormously challenging for businesses but have still shown incredible resilience. During such economic uncertainty periods, having a presence in a number of markets helps minimize the risks effectively. So, we should make sure that businesses in the UK are encouraged to keep searching for international trade opportunities.
Despite challenges in international trade, businesses don’t have to go it alone. Research points out that most businesses don’t realize the significance of FTAs. Their overseas success is in everyone’s interest. So, they want to make exporters feel empowered to talk about the support they need from Government, their trade bodies and businesses.