Small to medium-sized enterprises (SMEs) in the UK are diverting £10 billion in exports away from the European Union (EU) as they prepare for Brexit.
The news follows research by Aston University, which found that UK exports to South America and East Asia have increased significantly ahead of the next round of Brexit talks, with businesses preparing for a potential collapse in the trade discussions.
With the impact of the coronavirus being the primary concern for the EU and the UK Government, many experts believe that the chances of a trade deal being agreed before the end of the year are diminishing, despite recent comments from the UK Government.
The Prime Minister, Boris Johnson, has not ruled out an extension to the EU transition deal, which is currently scheduled to end on 31 December 2020, while pressure has also grown because of the confirmation that there will be checks on goods entering Northern Ireland from the rest of the UK.
The figures from the report revealed that micro exporters have switched almost half (46 per cent) of their new export growth from EU to non-EU countries, with small firms switching 19 per cent.
It has also been revealed that much of the growth has been in China, India, Russia, Brazil and the Commonwealth, with figures showing that the share of UK exports to the EU has declined in the last five years.
The EU is still the UK’s largest trading partner, accounting for £650 billion in exports every year, but the market share has been gradually decreasing as businesses look to the global marketplace for new opportunities.
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