Columnist Lynsey Foster, International Trade Executive at NI Chamber
Cause For Optimism Around Exports
Saudi Arabia Following China, most of Northern Ireland’s global traders are currently exporting to Saudi Arabia, with approximately 300 shipments having been processed up to the start of June 2021. Key exporting sectors were pharmaceuticals and unsurprisingly, those manufacturers supplying into the oil industry. Saudi Arabia is likely to continue to be a target export market for NI business with investments in flagship tourism projects and infrastructure driving demand for machinery, vehicles and equipment. Pharmaceuticals will also remain a key import for the region.
Lynsey Foster, International Trade Executive at NI Chamber provides an insight into the emerging trends the business support organisation is observing from its ongoing work with over 200 leading export companies.
Egypt During the first six months of 2021, Egypt has been the third most popular export destination for NI Chamber export documentation customers, with a total of 270 export shipments processed to date. As with Saudi Arabia, the main sectors trading with Egypt are manufacturing and engineering, pharmaceutical and agri-food. These figures are on a level with the first six months of 2020, which demonstrates the impact of the UK-Egypt association agreement (in place between the UK and Egypt from 1 January 2021) in delivering seamless export trading conditions.
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hile economic disruption resulting from COVID-19 has been widespread, the Global Trade Update reports that global trade has held up relatively well. The positive trends evidenced in Q4 2020 continued into 2021, with the value of trade in goods and services increasing by a further 4% in Q1 2021. Of course, NI businesses have had the added complication of changes to international trade through the impact of Brexit and the NI Protocol; however, export volumes have held strong and export documentation volumes processed by the NI Chamber team have been comparable year-on-year. The export documentation service is one of a suite of services NI Chamber provides to help businesses trade internationally. We also provide practical guidance and support to our members through expert advice, international collaborative events and technical training. The scope of our offering enables us to deeply understand the export landscape first-hand. We have real-time insights into where NI businesses are exporting to outside of the EU, including which sectors are seeing traction in the international arena and what volumes are being exported. Export documents are required when exporting outside of Europe and looking across the profile of our current clients, we can see that the top five export destinations outside of the EU are currently China, Saudi Arabia, Egypt, United Arab Emirates and the United States of America.
UAE For the first six months of 2021, the volume of exports from NI to the UAE from across NI Chamber’s exporting clients has been on par with the same time in 2020. Key sectors include equipment suppliers, agri-food and those within the commercial fit-out supply chain. USA Export documentation trends have demonstrated a notable increase in exports from Northern Ireland to the USA in the first half of 2021. This appears to be driven by a few key customers within the food and drink sector. The scale of the USA means that there are plenty of opportunities for NI businesses but there are of course vast regional differences across the 50 states, which NI businesses need to be aware of. The US legal culture, where litigation is common, is another important consideration, as is the need for business insurance, while obtaining work visas can be expensive and time consuming. As a target export market, the USA presents significant opportunity however, NI businesses should ensure they have carried out their research in terms of which territory fits their product / service best and build credible in-market connections. NI Chamber and its international champions will focus on the USA as a target market at the next International Collaborative Forum, scheduled for Thursday 9 September 2021. The online forum will provide attendees with practical information and guidance for trading with the USA and the opportunity to learn from our experts, as well as the chance for collaboration with similar companies.
China Northern Ireland’s relationship with China is extremely important and it’s much more than completing one-off business deals. Doing business in China requires a focus on building strong working relationships with partners who will deliver positive outcomes for both parties. For the first six months of 2021, China was the top country NI that Chamber export clients shipped to, with a total of 430 shipments processed and the agri-food sector leading the way. Key export regions include Shenzhen, Taiwan and Beijing, which reflects the growing importance of the UK’s red meat industry to the Chinese market. While travel restrictions were imposed due to COVID-19, local businesses continued to promote their products virtually through videos and via virtual platforms at the China International Meat Industry Exhibition (CIMIE) in September 2020. That event is scheduled to run again from 15 – 17 September 2021. Businesses in Northern Ireland have been resilient and have continued to connect with influential buyers in China, consolidating already established relationships and building strong links for ongoing trade.
In conclusion To date, international trade for NI businesses has held strong in 2021 and the outlook for the second half of the year is optimistic. NI businesses have remained resilient, adapted to the new working world and focused on customer relationships by adding value and building strategic partnerships with both customers and suppliers. NI Chamber will continue to support exporters by ensuring their goods travel uninterrupted and within efficient lead times and, in doing so, help maintain their competitive edge.
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