UK businesses are continuing to struggle with post-Brexit trading rules as export bosses warn that life outside the EU is becoming a ‘nightmare’ as fears grow that the Northern Ireland protocol could lead to a trade war with Brussels.
Exporting firms have warned that costs and red tape have seen doing business with the EU become more difficult, cut into margins and take too long.
One such exporter, Mark Brearley of kitchen equipment firm Kaymet, said to The Guardian that: “There’s a sense of, ‘Oh God, here we go again.
“There are loads of things I could’ve been doing if it wasn’t for these problems. We could do things that take us forward, rather than back.”
Owner of men’s fashion brand Rivet & Hide shared his own thoughts, adding that: “It’s really frustrating. I hear Johnson boasting about free trade and all the rest of it.
“I don’t know how he’s got the brass neck to talk about us doing free trade when basically he’s the one who’s imposed sanctions on our business.
“We were freely trading with the EU and now we’ve had tariffs imposed on us through our Brexit deals.”
Since 2019, key export categories including clothing, fruit and veg, cars, livestock and fish have all seen large decrease, with total exports down 8.3%.
However, there are signs that UK firms are beginning to look further afield to grow their international sales.
Data from the Food and Drink Federation found that exports to non-EU countries rose 16.2% in the first three months of the year, almost 11% higher than in Q1 2019.
Read more: Rise in non-EU food and drink exports for UK firms
Total non-EU exports of food and drink are now worth a record £2.3bn, with sales to Australia, Canada, India, Japan and the US showing the most growth. Beef exports rose 80%, with whiskey, chocolate and gin also seeing sustained growth.
Whilst food and drink exports to the EU still remain higher at £3bn, the rise in sales further afield may be a sign that UK firms are starting to broaden their horizons in the wake of Brexit.
Exports of food and drink products by UK exporters have risen above pre-pandemic levels.
Data from the Food and Drink Federation found that exports to non-EU countries rose 16.2% in the first three months of the year, almost 11% higher than in Q1 2019.
Total non-EU exports of food and drink are now worth a record £2.3bn, with sales to Australia, Canada, India, Japan and the US showing the most growth. Beef exports rose 80%, with whiskey, chocolate and gin also seeing sustained growth.
Whilst food and drink exports to the EU still remain higher at £3bn, the rise in sales further afield may be a sign that UK firms are starting to broaden their horizons in the wake of Brexit.
The FDF predicts that further growth is on the cards, with the UK-Japan trade agreement already signed and new deals with Australia and New Zealand on the cards.
Read more: 5 ways the crisis in Ukraine is impacting international trade
Association director of the FDF, Nicola Thomas, noted that: “Such strong growth highlights how with widespread economic and political instability around the world, a renewed focus on exporting is a crucial risk-mitigation strategy for UK Food and Drink companies in 2022.”
EU still a major market
Despite Brexit, the EU trading bloc remains a core and critical market for many exporting firms, and the pandemic, war in Ukraine and the UK’s departure from the European Union have caused massive upheaval for import/export businesses.
We’ve created a free checklist you can download to help navigate the choppy post-Brexit waters – ideal if your organisation has limited experience with customs declarations, licenses, VAT on imports or rules of origin.
