More help needed to stop dramatic post-Brexit fall in UK exports
1 September 2022
More help must be given to British exporting companies now that the UK’s latest trade figures confirm a lasting significant decline, says Chamber International director, Tim Bailey (pictured below).
“Many British exporters are stuck in a ‘poor performance’ rut with many still struggling with practical aspects of EU trade, following Brexit, and some withdrawing entirely.
Some EU countries, including Germany, are faring far better and have already recovered Covid-19 pandemic losses, adds Bailey, a member of the Local Regional Trade Partners Committee and former member of the UK All-Party Parliamentary Trade Forum”
While a British Chamber of Commerce (BCC) survey this spring showed a dramatic 4.4 per cent fall in exports, latest quarterly figures confirm they are in a rut with the proportion of exporters reporting increased overseas sales unchanged for the fifth successive month at 29%, while those reporting a decrease stuck at 25%, confirming a continuing decline since 2021, when the UK left the EU single market and replaced it with a new tariff-free Trade and Cooperation Agreement (TCA).
In the latest survey, BCC expresses particular concern for exporting manufacturers with only 39% expecting their profitability to increase in the next year due to increased raw materials, utilities and labour costs. Only 48% of exporters of services are expecting better profits.
Bailey, who has chaired the European Regional Impartiality Committee for FTSE 100 multinational assurance, inspection, product testing and certification company, Intertek PLC, for the past two years, says exporting companies need more help due to increased bureaucracy, more complex procedures, higher costs and added difficulties created by rising energy and raw materials costs and sluggish post-pandemic lockdown supply chains.
Advance questions submitted to a recent Chamber International emergency online briefing, Is Brexit Working For You? show that difficulties faced by UK companies include the Northern Ireland protocol; complexities in the new TCA; VAT issues, difficulties establishing EU fiscal representation; new rules of origin and commodity codes; additional freight costs, border controls and workforce mobility.
Bailey says “Among issues we are dealing with include goods being inexplicably delayed at borders, long waits for reclaiming VAT from the EU countries resulting in cash flow problems in the UK and goods being inexplicably rejected by customs which are applying the new trade agreement unevenly.
“More than 18 months after the UK-EU free trade agreement, UK exporters are stuck in a poor performance rut. Much needs to be done to get UK trade to where it should be if Britain is to fulfil government aspirations to become a successful independent global trading nation or we will continue to fall behind and risk lasting harm to the economy”.
Chamber International, which has offices in Bradford and London helps hundreds of new and experienced exporters throughout the UK with a wide range of specialist services to make exporting easier and more cost effective.
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