A huge majority of exporters have identified costs and disruption together with tariffs and customs procedures as the top barriers to exporting, a new survey has revealed.
The British Chambers of Commerce (BCC) and DHL Express survey of almost 1,000 UK businesses, indicated that almost half (48 per cent) of the top barriers to exporting were costs and disruption, alongside tariffs (48 per cent), and customs procedures (47 per cent).
However, while trade barriers affect most firms, overcoming challenges presented by UK-EU Trade and Cooperation Agreement (TCA) has led some to expand into new markets, with others preparing to do so.
The survey found that:
- 54 per cent of businesses think smoother customs procedures are the key to boosting UK exports
- 42 per cent favour lowering tariffs
- 35 per cent feel there is a need to reduce regulatory barriers
- 29 per cent want better support for smaller businesses
The survey further highlighted that a further 41 per cent of businesses said regulatory issues, such as product certification, were a problem, while 37 per cent cited political, social, economic or environmental uncertainty were key issues.
The lack of engagement amongst businesses with Free Trade Agreements (FTAs) is another obstacle to international sales. Four out of five firms (79 per cent) had not carried out any assessment of what they may need from a trade deal with major international markets. This falls slightly to 69 per cent for UK exporters.
New opportunities opening up
In terms of being able to expand into non-EU markets, of those that can satisfy the TCA requirements, nine per cent say they are now trading with new non-EU markets as a result of this, and a further nine per cent say they will now consider doing so in future.
According to the report, this highlights the opportunities that trade presents for businesses, especially those who show resilience in the face of challenges.
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