Global

We’re your gateway to international trade, providing a unique combination of expert knowledge, essential documentation and the business connections needed to capitalise on new market opportunities overseas and succeed in a global marketplace.

Photo by Jorge Aguilar on Unsplash

Chamber Network welcomes launch of UKMexico trade negotiations

Trade Ministers from the UK and Mexico have launched negotiations on an improved trade agreement between the two countries. Current trade terms are based on a continuity agreement put in place when the UK left the EU. Reacting to news of the launch William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “Mexico is a key market for exporting firms, particularly in Northern Ireland and the North-East of England, from business services to food and drink. “We want to see an ambitious new agreement that focuses on the growing market in green trade, as well as future proofing access for further expansion in services. “Other key factors will be effective labour mobility and business travel schemes, and reduced costs for exporters through strong digital trade provisions. “We also want to see arrangements on rules of origin which provide manufacturers with similar flexibilities on supply chains to those currently in place, as well as the benefits of further tariff reductions. “A modern agreement has the potential to boost opportunities in Mexico for UK exporters in a growing and exciting market - the 15th largest economy in the world in 2020.”

How to mitigate currency risk

Currency market volatility and supply chain interruptions caught out hundreds of companies during the early weeks of the COVID-19 outbreak, highlighting the importance of managing foreign exchange risks. On 20 March 2020, sterling fell to its lowest level against the US dollar for 35 years, with the GBP/USD exchange rate moving from 1.3157 to 1.1494 in the space of a few days. If they haven’t already done so, company directors with significant overseas transactions should move quickly to help mitigate against further volatility. Those seeking greater visibility of their future costs may opt to use a forward contract like the ones offered by WorldFirst. Forward contracts allow you to secure an exchange rate for a defined period in the future, helping with cash-flow planning and potentially mitigating currency risk. By embracing this approach, company directors can budget for future revenues and book transactions ahead of time while funding them at a later date. The World Trade Organization suggests the pandemic may result in increased levels of international trade longer term, which means the use of currency risk management solutions could become a popular and prudent choice for businesses. Read more about the importance of managing currency risk on the WorldFirst website. For more information please contact

regional.sales@worldfirst.com

UKRAINE SUPPORT

RECENT UPDATES

The British Chambers of Commerce Ukraine Hub contains updated information and guidance for businesses about the situation in Ukraine. This will continue to be updated as and when new guidance is received. Visit the Hub at www.britishchambers.org.uk/page/ ukraine-support

New packaging and electrical and electronic equipment (EEE) obligations for sellers on German online marketplaces

From 1 July 2022 online marketplaces and fulfilment service providers operating in Germany will be subject to new extended producer responsibility obligations for packaging that they place on the market, with similar regulations for electrical and electronic equipment (EEE) coming into force on 1 January 2023. Due to recent German packaging law changes, operators of online marketplaces will no longer be allowed to offer packaged products, and fulfilment service providers must not carry out any activities, such as storing, packaging or dispatching goods, if the sellers of these products have not complied with their legal obligations. Sellers need to be registered with the German Central Packaging Register LUCID and license their packaging with a German compliance scheme. These regulations apply to both product and shipping packaging. For help and support on anything International Trade related give the Chamber a call on 01223 237414 or email internationaltrade@cambscci.co.uk

Why and when you need Multilingual Copywriting Services

Top Tips from Iwona Lebiedowicz, founder of PAB Languages Centre

To engage effectively with your customers in various markets, you need to create content with your audience in mind. But you can’t always get that from a straightforward translation. Standard technical translation can be applied to technical, factual, non-emotional documents. These are often related to the engineering, financial, and medical fields, and might include machine manuals, system descriptions and specifications, labelling of hazardous substances, safety instructions and so on. Certified translation will be often required for official purposes and is used in legal documents such as birth, death and marriage certificates, legal contracts, written or recorded accounts of court proceedings, and so on. Standard and certified translation is usually a rigid, word-for-word, literal translation. Which is great if that’s what you’re looking for. But if you need something more nuanced, something that carries the original meaning of your words and emotions across languages and cultures, neither standard nor certified translation will do. The fact is, when you need to accurately reflect your marketing messages for other countries or cultures, you need multilingual copywriting services. Copy persuades. It inspires action. This is why it’s such a powerful tool to promote and sell. Multilingual copywriting is the best option when you need to adapt your content to a local and cultural context in another country. This might include advertisements and billboards – both physical and digital – headlines and body copy, slogans, and straplines. Indeed, any type of content which you want to connect emotionally with your global audience. And sometimes translation isn’t enough. “You will not truly connect with your foreign clients simply by showing you understand their culture; your words and actions must prove that you have entered their world.” At PAB Languages, our team of native-speaking experts come from all over the world and understand all the elements and cultural references you’ll need to take account of when speaking to your audiences. Our creative linguists will use the right words, the right style and tone to ensure you are communicating effectively with your international audience. Get in touch today on 07799 772 360 to discuss your project.

The Bank of England can’t avoid being the headline news

There was a time when policy makers at Central Banks were able to remain fairly anonymous, their thoughts and mutterings would be at most an article in tomorrow’s newspaper. For Bank of England (BofE) Governor, Andrew Bailey, and his cohorts, remaining in the background is not an option. Inflation in many large global economies shows no sign of abating, his every word, every action, every thought is scrutinised like never before. Central Banks are in the main tasked with protecting financial stability, many being specifically tasked to keeping inflation at manageable levels. With UK inflation soaring, potentially to 12 per cent, the BofE are being heavily challenged on how they intend to meet their remit. Independent since 1997, the BofE has until recently shown that it can keep inflation low but now must demonstrate that it can reduce high inflation. Its credibility is at stake, which in turn will be a key driver of how the financial markets perceive the outlook for the Pound over the next 12 month. Their task is a tough one, Andrew Baily noted to the Treasury Select Committee “80 per cent of the overshoots over the target is due to energy and tradable goods.” He further highlighted, the unforeseen war in Ukraine and a further wave of covid in China, also putting pressure on prices. Historically high inflation is now being met with a slowing economy, raising interest rates also risks stalling the economy and unemployment rising. With these forces coming together, the BofE will need verbal and policy support from the Government to help as times get tougher. However, only 30 months (at most) to the next general election, a verbally supportive Government could quickly have dissenters, tying to shift the blame for the economic woe. The flip side should the BofE succeed in keeping structural inflation in check, then Politicians will be keen to bask in their efforts to the wider public. Chancellor Sunak’s cost of living announcement supported Sterling from the BofE inspired lows, however the theme of recent times will continue, it’s choppy waters with more negative forecasters than positive in the market. Markets are already betting on when Sunak will return to give more, whilst also demanding the BofE raise interest rates again.

2022 ranges for GBP (up to 1 June)

GBP v Euro – High 1.2190 - Low 1.1602 GBP v US Dollar – High 1.3749 - Low 1.2154 For more information on reducing the cost of foreign exchange for your business contact karen.benson@ascendant.world or visit www.ascendant.world/uk