NEWS | World Trade
Chris Southworth, Secretary
General at the International
Chamber of Commerce UK
T
he past year has been
volatile for UK business,
filled with constant political
and global uncertainty, but
there is room for optimism.
Recently, Prime Minister Theresa May
outlined her vision for a “Global Britain”,
with the UK becoming a champion of free
trade, boasting new trade agreements.
Ambitious or not, it is a great vision, and
one that might push UK businesses to
build trading relationships for goods and
services all around the world.
Global trade is highly competitive
and UK business must retain its edge.
While Europe is likely to remain our
largest trading partner, even after
the Brexit process is complete, some
companies would do well to view Brexit
as an opportunity to establish new
relationships with global institutions
and networks. Both will help strengthen
knowledge and skills and help manage
costs and risk. It is in everyone’s interests
to work with government to create a
positive business environment outside
the EU.
SO WHERE ARE THE OPPORTUNITIES?
Positive signs for a UK-US trade deal
suggest it could be a worthwhile option
– indeed, a World First report focusing
on small to medium-sized enterprises
(SMEs) showed that over 20% of UK
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exports of goods and services already go
to the US and Canada – something that
might increase.
Similarly, the UK has strong ties
with the Middle East, and rapidly
growing economies such as the UAE
are increasingly demanding imports of
goods and services in the infrastructure,
healthcare, retail, and tourism sectors.
Trade helps
drive sustainable
growth, quality
job creation
and increased
consumer choice
Meanwhile, Africa, which counts the
largest number of Commonwealth
members of any continent, only accounts
for 2.6% of the goods exported by the
UK. Countries such as Ethiopia – with a
large population, growing middle class,
and low levels of corruption – deserve
consideration, especially in the energy,
construction, and food and drink sectors.
Asia rounds off the regional
opportunities; with many countries
boasting GDP growth over recent years
that is the envy of those considered
“more developed”. As many shift towards
service-based economies – especially
frontier countries such as Indonesia – the
UK’s renowned financial services and
technology industries stand to gain.
And, in terms of consumer goods, we
should not forget the value of “Brand
Britain” abroad. India is a large and
hungry consumer in this respect, as is
China, which is expected to become the
leading luxury goods market by 2020.
GETTING THERE
Of course, maximising opportunities in
unfamiliar markets is no easy task, and
forming new trade relationships can be
daunting. Indeed, there are a number
of trade barriers to consider, including
customs procedures, transport issues
and financing solutions, not to mention
diverse business cultures, languages and
regulatory structures.
This is where global business
organisations come in – helping to ensure
businesses are well prepared to expand
their operations, and at the same time
helping international markets prepare to
welcome them. Organisations such as the
International Chamber of Commerce (ICC)
can act as a middle-man, championing
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