European markets crucial to success of British business
● Survey of 1,300 firms also highlights barriers imposed by tariffs and customs
British firms believe that Europe will be their main trading partner in the coming years, highlighting the need to secure a “business-friendly” trade deal with the EU, a key report today states.
A survey of more than 1,300 businesses by the British Chambers of Commerce (BCC), in partnership with logistics group DHL, found that, over the next three years, the top two markets for exports will be Western Europe (cited by 44 per cent of companies) and Central and Eastern Europe (32 per cent). Western Europe is also the market which most firms plan to import from (36 per cent).
The most significant barriers to trading with foreign markets were said to be tariffs, customs procedures and local regulations.
The BCC said the findings underlined the importance of the UK and EU reaching a business-friendly trade agreefirms, ment which minimises costs and trade barriers.
Director-general Adam Marshall said: “Europe is the UK’S largest trading partner, so it will come as no surprise that businesses regard access to European markets and products as fundamental to their medium-term trading strategies.
“Now that negotiations on the future UK-EU relationship are set to begin, businesses need clarity on the practicalities of the future trading relationship between the UK and EU without delay.
“High tariffs, cumbersome customs procedures, as well as conflictingregulatoryrequirements can deter firms from trading overseas, so a future agreement between the UK and the EU must minimise barriers and costs, to allow firms on both sides of the Channel to continue trading as freely as possible.”
He added: “The devaluation in sterling seen over the past 18 months has been a doubleedged sword, providing a welcome boost for some exporters, but a drag on many other who report higher costs for their inputs and components.
“Both the UK government and EU Commission must work together in the new year to move towards a frictionless trade deal that works for both British and European businesses.”
Meanwhile, business leaders’ confidence in their own firms remains robust as they look ahead to 2018, according to a new survey of hundreds of company directors.
The poll by the Institute of Directors shows that in December almost half of businesses were feeling “quite” or “very optimistic” about their own prospects but a similar number said they are feeling pessimistic when asked about the wider economy.
Half of the institute’s members – predominantly drawn from small and mid-sized businesses – cited domestic economic conditions as the leading negative factor for their business, while some four in ten said uncertainty surrounding the UK’S trading status with the EU and skills shortages were having a detrimental effect.