7 minute read
International
Businesses urged to get on board with trading abroad
Companies across Coventry and Warwickshire are being urged to be part of an international trade revolution after the launch of a new manifesto by a leading business group.
Just ten per cent of companies are involved in exporting so the team at the International Trade Hub at the Coventry and Warwickshire Chamber of Commerce is throwing its weight behind a national campaign that could help to grow the region’s exports.
The British Chambers of Commerce’s most recent research shows that exporters are facing a wide range of issues, from unprecedented inflationary pressures and global supply chain crises to a raft of new requirements flowing from the EU trade deal.
Its Trade Manifesto sets out a comprehensive list of steps to get more UK businesses involved in international trade – including working with its own Global Business Network – as well as setting out steps the Government needs to take to support overseas trade growth.
It is making the move after 23 per cent of firms surveyed said finding a business partner or distributor overseas would encourage them to either start exporting or export more.
A further 16 per cent of firms also said support with trade documentation would encourage them to start exporting or increase the amount of business they do overseas.
Ajay Desai, International Trade Director at the Coventry and Warwickshire Chamber of Commerce, said these services – and more – are available through the Chamber.
He said: “Understandably, the headlines have been dominated by Brexit and then by Covid and they have added to the perception that there are barriers to overseas trade.
“It’s vital, however, that we get more companies from Coventry and Warwickshire exporting and we can support that. There are lots of businesses in the region that are tapping into our services – such as export documentation – but we could support so many more and that would provide a massive boost for the whole economy as we emerge from a very difficult couple of years.
“The Chamber can help businesses to tap into these markets and the evidence shows that those companies that do export give themselves a much better chance to grow.
The BCC Trade Manifesto sets out a number of steps that the UK government could take to help firms trade with the EU and to make sure that any new trade agreements put the interests of business at their heart.
In Europe, these include: streamlining customs and trade processes to reduce paperwork and delays; developing more business-friendly rules on cross-border VAT; and bringing back, and boosting, the Brexit SME Support Fund to help firms adapt.
More widely they include: creating a Business and Trade Growth Office at the Dept for International Trade to help smaller businesses get involved in exporting; providing better access for UK professional services and mutual recognition of qualifications; setting rules on trade that support the future exports of environmental goods and services; securing real benefits for importers and manufacturers in the UK on tariff reductions and rules of origin; and providing manufacturers with better options on sourcing materials and components.
Shevaun Haviland, Director General of the BCC, said: “We want to work with the UK Government and other trading bodies to build a proper coalition of support for a strong UK trade and investment strategy.
“If we want more firms to get involved in exporting then we need to see more end-toend support to help them make the leap.
“But businesses also have the knowledge and practical know how to help the UK Government negotiate trade treaties that can open up new growth opportunities.
Improvements needed
to UK-EU trade deal
Business leaders in Coventry and Warwickshire have joined calls for improvements to the UK’s trade deal with the EU.
New research carried out by the British Chambers of Commerce (BCC) of more than 1,000 businesses has highlighted a host of issues with the deal with Europe.
Overall, just eight per cent of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54 per cent disagreed. For UK exporters, 12 per cent agreed that the TCA was helping them while 71 per cent disagreed.
The research comes just over a year on from the trade deal being signed and has seen firms calling for action from both the Government and the EU.
Tom Mongan, president of the Coventry and Warwickshire Chamber of Commerce, said: “It’s been more than a year since the deal was signed and many companies across the patch and across the country are still struggling with many aspects of it.
“It has led to rising costs, as well as delays, and just a general perception from customers in the EU that it is now a much more expensive and complex process to deal with businesses in the UK.
“This is making life more difficult for regional businesses at a time when they want to be pushing for stronger growth in the wake of the Covid-19 crisis.
William Bain, Head of Trade Policy at the BCC, said: “This is the latest BCC research to clearly show there are issues with the EU trade deal that need to be improved. Yet it could be so different. There are five relatively simple steps that UK and EU policymakers could take to ease the burden placed on businesses struggling with the trade deal. “Nearly all of the businesses in this research have fewer than 250 employees and these smaller firms are feeling most of the pain of the new burdens in the TCA.
“Many of these companies have neither the time, staff or money to deal with the additional paperwork and rising costs involved with EU trade, nor can they afford to set up a new base in Europe or pay for intermediaries to represent them.
“But if both sides take a pragmatic approach, they could reach a new understanding on the rules and then build on that further.
The British Chambers of Commerce has drafted solutions to five of the key issues involving trade with the EU. They are:
ISSUE: Export health certificates cost too much and take up too much time for smaller food exporters. SOLUTION: We need a supplementary deal on this which either eliminates or reduces the complexity of exporting food for these firms. ISSUE: Some companies are being asked to register in multiple EU states for VAT in order to sell online to customers there. SOLUTION: We need a supplementary deal, like Norway’s with the EU. This exempts the smallest firms from the requirement to have a fiscal representative and incur these duplicate costs. ISSUE: As things stand CE marked industrial and electrical products will not be permitted for sale on the market in Great Britain from January 2023. The same is true for components and spares. SOLUTION: We need action from the Government to help businesses with these timelines. Many firms are far from convinced about a ban on CE marked goods in Great Britain. ISSUE: UK firms facing limitations on business travel and work activities in the EU. SOLUTION: Government needs to make side deals with the EU and member states to boost access in this area as a priority for 2022. ISSUE: Companies starting to be pursued in respect of import customs declarations deferred from last year. SOLUTION: We need a pragmatic approach to enforcement to ensure companies recovering from the pandemic do not face heavy-handed demands too quickly on import payments, or paperwork.
