Parliament’s debate on triggering Article 50 and formally initiating the Brexit process is taking place against a backdrop of UK companies arguing that the EU will, and must, remain an important trading partner.
These views have been underlined by the latest International Trade Survey published by the British Chambers of Commerce (BCC).
Based on nearly 1500 responses, the survey found that UK companies remain committed to strong trading relationships with European customers and suppliers despite the UK’s vote to leave the EU.
Three-quarters (76%) of respondents currently sell goods and services into the EU market, with a similar proportion (73%) saying that they source goods and services from Europe.
Despite the UK withdrawing from EU membership, more than a third (36%) of survey respondents reported that they intend to put more resources into exporting to the European market over the next five years.
The survey also found that 18% of businesses are planning to allocate more resources to sourcing products and services from the Union’s Member States.
In terms of the UK’s future trading arrangements with the EU, respondents identified the three main priorities for Brexit negotiations as: tariffs; non-tariff barriers; and product standards, certification and compliance.
Commenting on the findings, Dr Adam Marshall described the results as an important reminder of the fact that it is businesses that trade, not governments. Businesses want the best possible terms of trade following the Brexit negotiations, whatever the ultimate model adopted, he added.
“Although the likely outcome of the Brexit negotiations remains unclear, businesses still see Europe as a primary market for both selling and sourcing inputs – even after the UK leaves the EU,” Dr Marshall concluded.
