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Exporting ‘critical’ to the future of eight in 10 UK firms

At Go Exporting, we know how critical exports can be to the long-term success of a business – it’s something we talk about all the time! And we love it when we see other businesses embodying that view. 

And new research from Alibaba in partnership with the Institute of Export and International Trade has shown that eight in 10 UK firms agree and see exporting as critical to the future of their business. 

The data, released in April this year, surveyed more than 3,000 UK businesses and found that 75% expected export sales to rise over the coming months, whilst a quarter expected significant increases in international trade activity. 

What’s more, and especially important after the last three years of upheaval and continued economic headwinds, 81% of businesses surveyed said that exporting had made their business stronger. 

“British businesses believe that export is integral to their success. It is positive to see exporters anticipating even further export sales growth in the next 12 months.”

Alibaba

If your business is new to exporting, or has just taken its first bold steps into international markets, Go Exporting can help you profitably achieve your goals. 

Read more: Value of UK exports rises £1bn as trade deficit narrows

Our export readiness audits help businesses to establish what work they need to do in terms of training, processes, policies and management in order to smoothly transition into a successful exporting company. 
Just want to read more about exporting for the first time? Then sign-up to our free Expert Exporter resource hub for a range of detailed guides on how to export for the very first time.

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FREE webinar: How to create a winning export strategy

Are you looking to take your business to the next level and capitalise on the opportunities that the global marketplace presents?

If you’re thinking about exporting for the first time, then you need this free Lunch and Learn webinar with Go Exporting CEO Mike Wilson taking place on 18th July at 12pm.

In the webinar, Mike will take you through the steps of developing your own export strategy as well as answering your specific questions.

You will learn;

  • What an exporting strategy is and how to create one for your business
  • Discover how to decide where to export and what markets to sell to
  • Overcome challenges that you may face as you start trading overseas

Book your free place by signing up here.

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Value of UK exports rises £1bn as trade deficit narrows

The latest economic data from the Office for National Statistics has shown the value of UK exports rising as the trade deficit narrows. 

As part of the ONS’ economic update, showing GDP returning to growth of 0.2% in April and 0.1% in Q1 overall, data highlighted how the value of UK exports rose in April alone by £1bn or 3.4%. Imports decreased by 1.4% (£0.7bn) at the same time, leaving the trade deficit at £12.3bn. 

The deficit for goods narrowed by £107bn to £52.5bn, whilst the service industry continued to thrive with a surplus increasing £1.9bn to £49.3bn. 

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

The ONS suggested that strong service-sector performance was the key reason why, overall, the economy stayed in the black during Q1 and returned to growth, masking falls in production output and a 0.6% reduction in construction activity. 

Brexit causing drag on exports

Despite some more optimistic data from the ONS, the exports industry is still struggling to adapt to the post-Brexit business environment. 

A report released this week from the UN suggests that all other G7 countries, aside from Japan, have outpaced the UK exports market. In fact, goods and services exports in the EU grew by over 29% between 2012 and 2021. In the UK, that figure was just 6%. 

If your business is looking to increase international sales but are struggling to adapt to the new trading environment, Go Exporting can help.

We specialise in helping companies just like yours to research, plan and execute an exports plan to drive sales growth in key territories. 

Learn more about how we can start to improve your international sales here.

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UK and US look to strengthen economic security through Atlantic Declaration 

Rishi Sunak and Joe Biden announced a new economic agreement this week, designed to strengthen critical supply chains as well as support investments in future technologies. 

The Declaration recognises the already close ties between the two nations whilst this new agreement sets out a pathway to strengthen those economic bonds to move quicker and increasingly in lockstep in future. 

The Declaration covers quite a bit of ground, including:

  • More information sharing during a crisis to reduce tech supply chain vulnerabilities 
  • A new civil nuclear partnership
  • A new ‘data bridge’ for UK-US data sharing
  • A new international summit on AI safety 
  • Cooperation to stop adversaries from developing more powerful tech
  • Joint research into AI, 5G and 6G, quantum, engineering biology and semi-conductors
  • A potential pathway for UK firms to benefit from US government investment 

Read more detail on the UK government website here

Sunak said of the agreement that: “It’s natural that, when faced with the greatest transformation in our economies since the industrial revolution, we would look to each other to build a stronger economic future together.

“The Atlantic Declaration sets a new standard for economic cooperation, propelling our economies into the future so we can protect our people, create jobs and grow our economies together.”

What does this mean for exporters? 

At the moment, not too much. This agreement is a far cry from the manifesto-promised fully-fledged trade deal that the Conservative party offered in 2019. Three US Presidents have kicked that can down the road in succession, in part due to worries over the UK’s handling of Brexit and Northern Ireland. 

Read more: Talks over UK – US trade deal unlikely to restart until 2025

It does mean there may be new opportunities, and updated regulations, to look out for in the medium term. 

Updated rules on data transfer would make it a lot easier for UK and US firms to work in lockstep with less red tape and save an estimated £92m each year. And any new pathway to deride investment from a government is a great opportunity should any UK-based firm be able to capitalise on it. 

Negotiations are now underway over many aspects of the new partnership, so expect further announcements towards the end of 2023. 

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

Update: The UK’s trade deals with Australia and New Zealand came into effect on 31st May 2023 and are now live.

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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Talks over UK – US trade deal unlikely to restart until 2025

Rishi Sunak’s new Windsor Framework was designed to do a few things. First and foremost was to fix the backstop issue in the original Brexit deal and remove the border down the Irish sea. And second, it was supposed to unlock talks with the Biden administration over a new, lucrative ‘Brexit dividend’-worthy trade deal with the US. 

And the latter looks to have worked… to a degree. The White House suggested to the UK government this week that it would now be open to starting talks over a trade deal again – but not until 2025. 

That timeline is only likely to accelerate should Biden lose in the 2024 US elections, if he decides to run for another term. If Biden is reelected, then 2025 could be pushed back further as he battles with those on the left of his own party who are concerned at the number of US jobs being lost overseas. 

Conservative MP David Jones told The Telegraph that: “The US can remain on the back-burner until we have a more sympathetic US President.

“Indeed, it was rumoured that Biden himself was keen [for the US] to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership [CPTPP]. If that happens, we will not need a bilateral deal.”

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

“In the meantime, we can focus on more enthusiastic trading partners, who are accounting for an increasing share of the global economy.”

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UK to join £11 trillion CPTPP trading bloc

The UK has signed its most significant trade agreement since leaving the EU by joining the Indo-Pacific trading bloc. 

The deal, which took two years of negotiations to strike, will unlock access to a region worth £11 trillion a year.

UK firms will now have increased access to markets including Canada, Mexico, Australia, Japan, Vietnam, and Singapore, with tariffs on food, drink and car exports expected to be cut. 

The value to the UK economy is expected to be £1.8bn – still far below the economic cost of leaving the EU. 

Prime Minister Rishi Sunak said of the deal that: “We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms. As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation.

“Joining the CPTPP trade bloc puts the UK at the centre of a dynamic and growing group of Pacific economies, as the first new nation and first European country to join. British businesses will now enjoy unparalleled access to markets from Europe to the south Pacific.”

Read more: UK food and drink exports exceed pre-pandemic levels

The deal has been welcomed by business leaders, with CBI director general Matthew Fell noting: “Joining CPTPP is a real milestone for the UK and for British industry. Not only does the agreement provide greater access to a group of fast growth economies representing 14% of global GDP and over 500 million consumers, but membership reinforces the UK’s commitment to building partnerships in an increasingly fragmented world.

“CPTPP countries and business need to work together to future proof the rules-based trading system and stimulate growth with a focus on digital, services and resilient supply chains.”

The deal comes as UK officials are hopeful that a new agreement reached with the EU over trade provisions for Northern Ireland may help unlock trade negotiations with the USA – something two presidents have put on hold until the fallout from Brexit was solved.

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UK service exports reach record levels

New data from the Office for National Statistics has found UK service exports have grown to their highest-ever levels. 

Sales grew by 20% compared to 2021 – and up 23% against 2018 – to £400 billion last year. 

The UK sits behind only the US as the biggest services exporter globally with the sector contributing some 80% to the UK’s total GDP. 

Business and Trade Secretary Kemi Badenoch said of the latest figures that: “These new figures are a trade success story and cement the UK’s position as a global services superpower.

“Services are the lifeblood of our economy, employing over 8 in 10 of our workforce. To see services trade reaching these heights is a firm reminder of the resilience of our strong services economy and shows significant progress in our race to export over a trillion pounds of British goods and services a year by 2030.

“I’ll be using my talks with Mexican politicians and UK businesses operating in Mexico to make the case for a revamped UK-Mexico trade deal which will significantly increase export opportunities, and boost jobs around the UK.”

Read more: New Northern Ireland Protocol could unlock US trade deal

The new Windsor Framework agreed between UK Prime Minister Rishi Sunak and President of the European Commission Ursula von der Leyen could open even more avenues for UK firms to prosper. 

The new policy for managing trade between the UK and NI, and then NI to the EU, could unlock negotiations with the US over a mega trade deal. Meanwhile, threats to the Good Friday Agreement had put the brakes on the UK’s efforts to join the CPTPP trading bloc, something which now looks more likely.

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UK food and drink exports exceed pre-pandemic levels

The global appetite for UK food and drink has continued to grow despite pandemic and post-Brexit pressures. 

New data from the Food and Drink Federation (FDF) has shown how food and drink exports have now surged past pre-pandemic levels to stand at a record £24.8bn with chocolate and cheese exports proving ever-popular. 

Over half of all food and drink exports went to Europe where sales actually rose 22% to £13.7bn. New emerging partners like Vietnam have also seen double demand, whilst sales to non-EU countries broke the £10bn value barrier for the first time. 

And high demand has been seen across almost all categories, highlighting a general trend towards UK produce – and not just high-demand brands. 

Dominic Goudie of the FDF commented: “UK food and drink continues to be recognised around the globe for its high quality, safety, and sustainability credentials, with demand as strong as ever across the EU and at record levels in developing markets.

“As the UK’s largest manufacturing sector, dynamic trade is vital if our sector is to deliver the robust growth we’d like it to in the coming months and years, benefitting communities in every part of the UK.”

Read more: Free Webinar: Exporting to Ireland

“Imports are essential for the success of our sector, adding value to UK produce while ensuring consistent availability and value for shoppers.

“There also remain substantial opportunities to deliver further export growth, but this will require the government to use all the trade policy levers at its disposal in support of the food and drink sector, to ensure that our producers can access competitively priced ingredients and sell into the fastest-growing markets.”

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