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UK exporters optimistic on benefits of Aus, NZ agreements as trade deals come into effect

UK exporters are getting ready to enjoy the benefits of the UK’s new trading arrangement with Australia and New Zealand. 

The first brand new free trade deals sealed by the UK government following Brexit, the agreements with both nations will see tariffs removed on thousands of goods as well as enhanced access for UK service providers to do business in the respective countries. 

Following some final regulatory tweaking, it’s expected that both trade deals will go live at midnight on 31st May. 

Both deals are expected to increase long-term bilateral traded by up to 59% whilst also enhancing investment opportunities and access to government contracts, producing tariff-free access to both markets for all British goods, flexibility on rules of origin, removal of UK import tariffs on the majority of goods from Australia and New Zealand, and more opportunities for UK professionals to work in both nations. 

Read more: UK to join £11 trillion CPTPP trading bloc

Business and Trade Secretary, Kemi Badenoch, said on the deals’ impending launches that: “With these two deals the UK is using our status as an independent trading nation to tailor agreements to our country’s economic strengths. Alongside our recent conclusion of talks to join CPTPP, the government is forging a bold new future alongside the world’s most dynamic and fast-growing economies.

“Putting these trade deals into action will help create new opportunities for business, boosting wages and helping spur economic growth.”

UK exporters confident of future benefits

A small poll of 200 business leaders in the UK by the Institute of Export & International Trade found that 95% were confident they’d be able to benefit from both trade deals with nearly eight in 10 noting that reduced tariffs was a huge benefit. 

However, half said that the biggest potential stumbling block will likely be the distance between the trading nations, whilst a lack of market knowledge of Australia, in particular, could be a hurdle. 

If your business is looking to benefit from the new free trading agreements with Australia and New Zealand but aren’t sure where to start, then Go Exporting can help. 

We can help to assess the global market potential for your company and products and pinpoint specific nations where the potential demand is highest. 

Learn more about how we can help you make the right market entry decisions with the clarity of real market information here

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50% of revenue for UK exporters comes from overseas but one in four still aren’t trading abroad

Fresh data from Alibaba in partnership with the Institute of Export & International Trade has shone a light on just how powerful exports can be for UK businesses. 

Their new report entitled ‘The UK Opportunity Report – Global Horizons: helping UK businesses grow through international trade’ quizzed 3,000 UK businesses to uncover just how powerful international trade has been for them. 

Businesses already exporting, some three-quarters, said that export sales accounted for 49% of their total revenues with 82% of all responders saying exports had increased company revenues – 97% for enterprise-level firms, and still a healthy 68% for micro businesses. 

And the benefits of exporting aren’t just revenue related. The report also found that 79% of firms viewed international trade has helped to ease the pressure of doing business in the UK with a similar number saying exports had made their business stronger and more resilient. 

Eight in 10 said exporting was critical to their future plans. 

Download now: 7 Key Changes to UK-EU Trade Post-Brexit

Alibaba’s Roland Palmer noted that: “International trade is widely recognised as a key driver of growth, benefitting businesses that export and the UK economy. 

“Furthermore, the UK’s recent economic challenges underline the importance of advancing prosperity by accessing new markets and customers.”

One in four UK firms missing out on export benefits 

The report by Alibaba and IOE&IT also highlighted how 25% of UK businesses are still yet to start exporting, despite the wide-ranging benefits of doing so. 

Some of the complexities surrounding starting to trade abroad for the first time can be a big stumbling block for smaller firms, especially in the wake of Brexit. 

If your business would like to explore the benefits of exporting for the first time but aren’t sure where to start, then Go Exporting can help. 

Our international trade consultancy services helps you to plan and prepare for your export journey. But before that, we can help you undertake an export readiness evaluation to assess and prepare you to start your global expansion plans. 

Learn more and get in touch here

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