Despite mounting trade complexity from both the US and EU, director general of the Chartered Institute of Export & International Trade Marco Forgione has said UK businesses shouldn’t be discouraged from exporting.
Speaking to an audience at Going Global Live, the annual trade show held at London’s ExCeL Centre, he said that demand for UK products and an international trade environment still centred on UK values presents “vast opportunities”.
Addressing small businesses in particular, he highlighted the support available from e-commerce platforms, banks and trade experts, supporting them to grow their businesses through trade.
Geopolitical challenge
Forgione began by acknowledging the unique set of circumstances that traders currently face, including Brexit making the UK an “independent trading nation” for the “first time in three generations”, and the new threat of tariffs from a protectionist second Trump presidency.
While it may seem “an increasingly volatile and uncertain world”, he encouraged UK businesses to focus on the export opportunities presented by the country’s history – with 80% of trade taking place under English law and the prevalence of English as the lingua franca of commerce.
‘Never been so high’
He went on to highlight the high regard with which British products are held across the globe – sharing case studies of small firms, from the UK’s dessert company Little Moons to male grooming products sold by Captain Fawcett.
“We’re selling mochi to Japan, we’re selling tea to China. Demand for UK products has never been so high.
“Although there are complexities that must be navigated, the opportunities are vast.”
The biggest challenge traders face, he said, is that “delivery is not able to keep pace with the UK’s potential”.
He went on to outline some of the tools available to businesses that can support them to sell overseas.
E-commerce for exports
E-commerce platforms can facilitate “better data collection and speedier entry into new markets”, Forgione said, which can remove some of the cost and administrative burdens which typically challenge smaller businesses to export.
He highlighted the Chartered Institute’s work through the E-commerce Trade Commission (E-CTC), which has worked with government and industry since last year to create policy recommendations that could support SMEs to grow through trade.
This followed a report by the Social Market Foundation that found there are currently 70,000 SMEs which could be exporting their goods, marking a potential £9.3bn boost to the UK economy.
Tailored financial support
Forgione also noted that one major deterrent to exporting faced by small businesses is securing the funding to support their first overseas contracts. However, he added that major international banks, such as Santander and Barclays, “are offering greater facilities to smaller businesses”.
“Contact your banks” he urged traders, as “many now offer facilities targeted towards the entrepreneur and micro business communities”.
General Export Facility (GEF), provided by the UK Export Finance (UKEF), was also highlighted as a good source of funding for budding exporters.
Chartered Institute support
Reflecting on the changes to EU trade that businesses will have to navigate next year – safety & security (S&S) measures introduced as part of the UK’s Border Target Operating Model (BTOM) among them – Forgione said there’s no way around it but “to understand the finer detail”.
While this may be intimidating for smaller businesses without the in-house technical resource, he emphasised the expertise that exists within the Chartered Institute, which boasts a pool of trade and customs specialists with a combined total of over 2,000 years in international trade.
Being able to effectively navigate trade agreements and customs rules means “maximising efficiencies and exploiting opportunities”, something the Chartered Institute is there to help with.