According to the latest research, the US is now the top country for UK small to medium-sized enterprises (SMEs) to trade with.
The report was conducted by the Federation of Small Businesses (FSB) and the UK Trade Policy Observatory and highlights the importance of SMEs capitalising on post-Brexit trade agreements.
Almost half (46 per cent) of SMEs that are hoping to export in the next three years said that the US is the most important individual country market, with 38 per cent of respondents stating that Germany is the top country for exports.
The research involved a significant review of the free trade agreements that the UK has agreed, identifying how SMEs can achieve their international trading goals.
It also states that UK SMEs proportion of global trade is significantly lower than our domestic economies, with the issue of tariff preferences being key for small businesses to access new markets. The report called for free trade agreements to be designed to make it easier for SMEs to take advantage of the tariff preferences that they offer.
Mike Cherry, National Chair of the FSB, said: “Small businesses are already the backbone of the UK’s domestic economy. For our country’s future prosperity, we now need to see their share of global start to catch up, by putting SMEs front and centre of all new trade agreements, especially as we depart the EU.
“It is essential that the needs of smaller firms are at the heart of future FTAs through a dedicated small business chapter in each agreement, and that the Government has the necessary architecture in place, to ensure the small business voice is heard loud and clear.”
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