Exciting times for exporters
Despite the UK’s economic travails, our recessionary flirting and a weak pound, the economy is actually quite resilient and exports will play a critical role in shortening the downturn.
The Secretary of State for International Trade, Kemi Badenoch, said that we need to‘get our exports and investments going’, because trade will be key in helping the UK’s economy through the difficult months to come.
That is why we will continue to work closely with our exporting customers, to support their competitive and effective outbound flow of goods, and help stimulate our economy to minimise the impact of any recession.
The BoE’s 12th interest rate rise in a row, takes the base rate to 4.5% and while a rise in interest rates would normally strengthen a currency, markets are likely to react against Sterling, in part because the US’ Fed and ECB are pursuing similar monetary tightening strategies, but also because the market thinks the economic picture is bleaker in the UK.
Lower exchange rates make British-made exports more competitive, as overseas customers require less Sterling to pay their UK suppliers and there are ways that exporters can accelerate their trading, including trade agreements, government support and training.
Since leaving the EU, the UK has signed agreements with 71 countries, including Australia and New Zealand, with many agreements retaining the terms the UK had as a member of the EU, but all removing market access barriers.
The UK’s most recent agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with Australia, Canada, Japan, Mexico, New Zealand, Singapore, Vietnam, Peru, Malaysia and Chile, supports tariff-free trade with a number of nations with which the UK does not currently have full FTAs.
On top of all these opportunities the US tops the list for UK small businesses to trade with outside Europe, with 59% of UK small exporters selling goods to the US, their most popular non-European export market, followed by Australia (44%) and Canada (36%).
The US is also the top sourcing market for UK small importers outside Europe, with almost a third (32%) buying goods from the States. China is placed the second (30%), just before India (9%).
For British businesses, exporting is integral to their success and international markets represent their best chance of transforming their business potential. It is essential that they find effective partners, like PSP Worldwide Logistics, who can manage their exports effectively, to accelerate growth and unlock global opportunities.
If you are thinking of trading with the United States (or any other market), we can advise you on trade regulations and guide you through licensing and customs compliance, so that you are prepared to access new markets successfully.
We operate daily import/export air freight services, with full load container departure on next vessel and weekly groupage services to most destinations.
EMAIL our managing director, Colin Redman for more information, advice and guidance.