LLOYDS BANK INTERNATIONAL TRADE EVENT

Tariffs, regulation, geopolitics and recruitment were all on the agenda at a special Liverpool Chamber export roundtable event, hosted by Lloyds Banking Group.

The aim of the session was to help gain a comprehensive understanding of international trade challenges across regions outside London, providing a broader perspective on the issues faced by businesses throughout the country.

Hosted at RSM’s Liverpool offices, the event welcomed several organisations for whom importing and exporting is fundamental to their business, as well as shipping and logistics operators and a representative from the Department of Business & Trade.

To observe commercial sensitivities, we have kept the identities of delegates confidential.

Tariffs and bureaucracy

A central theme of discussions was the post-Brexit trading environment, where several attendees reported regulatory challenges and increasing red tape.

An engineering specialist from the Wirral, commented: “Post-Brexit tariffs when exporting goods between EU markets have created a range of complications. Solutions like bonded warehouses or EU branches can be effective but are also costly.”

A Wirral-based manufacturer and supplier of water treatment chemicals, said: “We are experiencing increasing challenges when exporting, especially to markets such as the Middle East and the EU, mainly due to logistical and regulatory hurdles.”

Businesses in other sectors reported similar concerns, with Liverpool based firms highlighting significant post-Brexit barriers to exporting electronics and military goods, from the UK to the EU.

Shipping costs and pricing

Rising shipping costs and delays are also impacting local businesses, including a manufacturer specialising in aerosolbased products, who told the session: “Pricing after Brexit is difficult, we’re finding it really hard to compete in some of the markets that we used to, simply due to additional costs and uncertainty. If shipping containers are delayed and we are hit with demurrage costs, we cannot pass that on to our customers, with whom we’ve already agreed a price.”

Standards of trade

Another manufacturer based in Speke, highlighted a lack of consistency of standards within trade agreements. “There certainly needs to be a broader recognition of standards within trade agreements and that lack of consistency in standards is a substantial growth inhibitor, as each country has different regimes.”

Geopolitical impact

The war in Ukraine, the Red Sea crisis and tensions in the Middle East tensions are having a clear impact on shipping routes and costs, while U.S. trade policy continues to create uncertainty.

A logistics provider said that a key challenge for them was maintaining trade flows amid geopolitical crises and supply chain disruptions.

Financial challenges

Finance is also a concern for many businesses, with attendees agreeing that greater financial support is critical, beyond UK Export Finance (UKEF), for SMEs to enhance their presence at trade shows, secure credit insurance, and manage the rising costs of exports, some markets present unique difficulties due to low credit scores and limited bank support.

Skills and recruitment

A limited supply of technical knowledge and training in international trade practices, as well as difficulties in recruiting multilingual staff, is another challenge for businesses. Targeted training and fostering adaptability among staff, could help to minimise risks.

Paul Cherpeau from Liverpool Chamber also encouraged attendees to engage with the Local Skills Improvement Plan and help education providers to understand their specific recruitment challenges and requirements.

Lloyds Bank’s International Trade Portal can help with exploring new markets and contacts and is accessible to everyone, regardless of whether they bank with Lloyds. The portal includes tools to identify new suppliers, customers, access to information about trade shows, assistance with tariff details & provides country profiles.

Delegates emphasised the importance of leveraging support from organisations such as Chambers of Commerce, the Department for Business & Trade (DBT), and Innovate UK, while accessing local support schemes offered by Growth Platform.

Closing comments

The session ended with a collective agreement around the need to simplify bureaucracy, provide greater financial support for international trade, improve customs declaration processes and ensure timely shipping.

David Weatherhead, regional director of Lloyds Banking Group, said: “We are delighted to have been able to gather so many successful and ambitious exporting businesses from within the Liverpool Chamber membership, it’s incredibly useful to hear first-hand about the various concerns and opportunities identified by businesses.”

Elena Enciso, head of international trade at Liverpool Chamber, commented: “This event was really important in recognising the crucial benefits of international trade to the Liverpool City Region economy, and also the role that Liverpool Chamber has played, and continues to play, in supporting businesses who wish to import and export.”