Small firms’ Brexit fears focus on trade barriers

SMALL firms in Wales are concerned about barriers and tariffs that could emerge when exporting to the EU post-Brexit

A report from the FSB, entitled Keep Trade Easy: What Small Firms Want from Brexit, highlights that small businesses trade based on factors such as ease, cost and value.

It says small firms are likely to follow the path of least resistance – usually based on how easy it is to trade with a particular market – and therefore it is crucial that the UK Government does not allow barriers to be put in the way of firms that trade or are seeking to in the future.

Janet Jones, FSB Wales Policy Unit chair, said: “This report shows that small firms are optimistic about trading with markets such as Germany, USA and Australia, as well as emerging markets such as China and India. However, within that optimism is a concern about potential tariffs and non-tariff barriers to trade with the EU, at the very time that the Welsh economy can least afford to see a slowdown in exports.

“Brexit is likely to change the export destinations of many smaller firms, with 32% of exporting small firms expecting to export less to the EU, but at the same time 26% expecting to export more to non-EU markets.

“The UK and Welsh governments need to provide much-needed support to small businesses to ensure there isn’t a lull in trade if the UK is to increase the numbers who export. Having seen encouraging signs such as Welsh Government’s engaging of business around their recent China trade visit, we look forward to seeing more of this in the future.”

Ms Jones added: “Any new trade deal that impacts exporters, must also take into consideration the impact on importers. Our new research has found that seven out of 10 (69%) small business exporters are also importers. This means that any new policy on trade must take into consideration the impact on them both.”