Brexit is once again supposedly just weeks away. Whether it’s the new Prime Minister’s insistence that the UK will depart the European Union with or without the deal on 31st October, or the fact that Brexit Day now somewhat fittingly falls on Halloween, it could be that the months of uncertainty for businesses will be over sooner rather than later.
However, millions of small businesses in the UK, as well as some large firms, are still less than ready for a hard exit from the EU.
Some support is on hand, however, with the government announcing a new £10 million Brexit Readiness Fund to help businesses prepare.
The grant scheme, unveiled by new Business Secretary Andrea Leadsom, is designed to help organisations, as well as trade associations, organise training courses, webinars, events, workshops and any other strategies to boost levels of readiness ahead of Brexit.
Firms can apply for up to £25,000 each which is funded as part of the £108 million announced earlier in August by the Treasury.
Commenting on the grant launch last week, Leadsom commented that: “The UK will be leaving the EU on 31 October. For businesses that still feel unprepared, I am determined to do everything I possibly can to ensure they are fully ready for Brexit.
“We know that companies often rely on the wider business community for help and advice with planning. Business groups will now be given the necessary tools to engage with this crucial task, communicating with non-members and businesses of all sizes.
“The funding we are announcing today will mean business organisations from all sectors across the country can stand resolutely behind businesses large and small to support them in preparing for and seizing the opportunities of, leaving the EU.”
Businesses have until the 30th of September to apply.
Too little too late?
There have been calls from all sides of the business community arguing that the government hasn’t done enough to support UK businesses, either through grant support funding or the availability of information to auto-enrolment in new required documentation or certification schemes.
Only this month the Department of Agriculture warned that the pattern of trade will change following Brexit with the agri-food sector unlikely to be ready to implement Export Health Certificates should there be a crash-out exit.
The CBI also released a report in the last few weeks that suggested 24 of 27 critical economy areas are underprepared or have next to no plans in place at all, including tariffs, the Irish border and free trade agreements.
However, the number of Authorised Economic Operator applications have increased this year with firms looking to prove their exporting credentials.
For many small businesses, however, grant money won’t be enough. Many firms lack the in-house time and expertise to formulate a comprehensive pre-Brexit threat analysis and post-departure strategies to cover both an agreed and no-deal exit.
If your business is one of these, find out more about Go Exporting’s Brexit audit and consulting here.
By Mike Wilson
In my last article writing for Cheshire Media Magazine, I speculated that there could be a delay to Brexit beyond the March 29th planned exit, yet questioned whether giving the politicians more time to argue would make any real difference?
Unfortunately, it turns out I was right and we sit here today, two extensions later, with the prospect of the turmoil and uncertainty carrying on until October 31st; although there is the option to leave at an earlier date if only the politicians can agree on something. As in February, however, this seems a remote possibility as I write this.
Read the full article here –
https://issuu.com/cheshirebusinessexchange/docs/may_june2019_digital_edition/66
The UK has looked to sure-up its trading relationship with Chile after the signing of a new trade continuity agreement.
Signed by Jamie Bowden, Ambassador to Chile an the Chilean Foreign Minister Roberto Ampuero on 30th January, the deal will see companies and consumers cotinue to benefit from preferental trading arrangements after Brexit.
Trade in goods and services between the two nations has been steadily growing for over a decade, with near 9% annual average growth since the initial agrement was agreed back in 2003.
This continuity agreement will ensure that the relationship continues to prosper with UK expots to Chile having grown some 351%.
The news will be particularly sweet for anyone who bougfht one of the 105 million bottles of Chilean wine sold in the UK last year, with the deal meanning no new tarrifs being itnrduced after the UK leaves the EU.
As well as confirming future trading relations, the deal also allows both British and Chilean companies to bid for certain public sector contracts across the Atlantic.
Read more: Nearly half of UK firms not prepared for chaotic Brexit
International Trade Secretary, Liam Fox said of the deal that: “Today we have signed an important trade continuity agreement as we prepare to leave the European Union. This will ensure there is no disruption to British business exporting to Chile after we leave the EU and will mean consumers continue to benefit from low prices and more choice on supermarket shelves.
“Our trading relationship with Chile continues to go from strength to strength, with exports rising over 20% to almost £1 billion last year. This free trade agreement will allow trade to continue as freely as it does currently and will help to strendgthen our trading relationship even further.”
Almost half of UK companies feel they are unprepared for a chaotic exit from the EU according to the Bank of England’s quarterly inflation report.
The report, which quizzed 200 businesses about their Brexit preparations and readiness, found that half had begun planning for no deal and no transition, but half said they felt unprepared for a cliff-edge scenario.
That’s despite three in four saying they did have some semblance of a Brexit plan in place.
Those we said they were ready still expected disruption over the next 12 months, including a reduction in output and employment.
Worryingly for exporters, just one in five firms said they were taking measures to ensure they had the required documentation in place to continue trading with the EU once Brexit happens.
Read more: UK firms trading with EU urged to apply for EORI number in preparation for No Deal
In what would have been denoted as ‘project fear’ by some, the reality and realisation of what leaving the EU without a deal would look like on the ground for manufacturers and consumer services companies, in particular, has started to hit home, with two-thirds stating they’d begun building up stock and taking out extra warehousing space.
Further research from IHS Markit/CIPS found that UK businesses are stockpiling goods at the fastest pace for nearly three decades, also reporting that export orders had levelled out despite three years of record export growth across UK industries.
Director at IHS Markit, Rob Dobson noted that: “The start of 2019 saw UK manufacturers continue their preparations for Brexit.
“Stocks of inputs increased at the sharpest pace in the 27-year history, as buying activity was stepped up to mitigate against potential supply-chain disruptions in coming months.
“There were also signs that inventories of finished goods were being bolstered to ensure warehouses are well stocked to meet ongoing contractual obligations.”
If your business is one of the many that still feels unprepared for Brexit, find out how Go Exporting can help support your company’s export interests with our Brexit consultancy.
The EU and Japan have signed a mammoth free trade deal, creating the world’s biggest economic area, and the biggest trade agreement either has ever committed to.
The deal covers a 3rd of the world’s GDP and will act as a timely counterweight to Trump’s tariffs on trade into the US which included 25% tariffs on Chinese goods worth over $34 billion.
The early winners of the trade deal are the Japanese car market with the new Japan-EU trade deal eliminating 10% car tariffs and 3% tariffs on car parts, whilst 30% duty on cheese and 15% on wine have also been cut. EU exporters will also be keen to exploit new markets within Japan too, with strong demand for high-quality cheese, chocolate, pasta and meats.
Of the deal, Japan prime minister Shinzo Abe noted that: “There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade.”
“We are sending a clear message that we stand against protectionism. The EU and Japan remain open for cooperation,” added Donald Tusk.
