5. Don’t expect too much from an FTA
The prospect of the UK signing its own Free Trade Agreements with other
major economies such as China is often considered an attractive proposition
for business. However, Mr Levesley cautions that an FTA may not address
many of the core issues British firms face in China. He reports that his clients’
key obstacles to business tend to be non-tariff barriers such as the complex
legal and tax framework, competing and overlapping regulations, and IP
concerns for example, which an FTA will not clearly resolve. Businesses
should instead continue to advocate through their respective Chamber of
Commerce on the pertinent issues that hinder their access to markets in
China, and call for more practical support from government.
While the large majority of British businesses in China are unlikely to see
drastic declines in performance after Brexit, it is nevertheless vital that
companies check every aspect of their compliance policies and every link in
their supply chains to safeguarded their business against a no-deal. Regard-
less of the probability of a no-deal Brexit, businesses should take every step
to guard against any potential consequences. Those that do will be more
ready to weather any volatility arising from a no-deal Brexit, and can
capitalise on a potential opportunity to re-strategise and streamline their
operations which will benefit their business, whatever the result.
1
'6 MONTHS TO BREXIT: Investment and recruitment cut if ‘no deal’', The British Chambers of Commerce, September 2018.
https://tinyurl.com/y6l66gzg
2
'British Business in China: Member Sentiment Survey', The British Chambers of Commerce in China, December 2018.
https://www.britishchamber.cn/en/advocacy-en/
BRITCHAM POLICY INSIGHTS| PAGE 5