Chamber News

A future UK-EU trade deal must minimise barriers to trade says the British Chambers of Commerce, as it released the results of its survey (27 December), in partnership with DHL, which finds UK businesses regard Europe as their primary trading partner for the coming years.

The results, based on the responses of over 1,300 businesses, found that over the next three years, the top two markets, which most businesses plan to start or continue exporting to, are Western Europe (44%), and Central and Eastern Europe (32%). Western Europe (36%) is also the market which most firms plan to import from.

According to the findings, UK businesses foresee the most significant barriers to trading with foreign markets as tariffs (46%), customs procedures (39%) and local regulations (20%). The results also show exporters’ strategies over the next three years will primarily be influenced by increased demand from overseas buyers (48%), exchange rates (36%) and the UK’s future withdrawal from the EU (35%).

Businesses looking to import say they will primarily be influenced by the lack of suppliers in the UK (43%), followed by exchange rates (41%), and it being cheaper to import than source in the UK or produce within their business (33%).

The results of the survey underline the importance of the UK and EU reaching a business-friendly trade agreement that minimises costs and trade barriers. Europe will not only remain an important market for UK businesses to sell to, but with minimal evidence that UK businesses can substitute domestic inputs for imports in the short term, access to the European market will be crucial for firms to source components.

Julie Austin, International Trade Manager at the Norfolk Chamber of Commerce said:

“Europe is the UK’s largest trading partner, so it will come as no surprise that businesses regard access to European markets and products as fundamental to their medium-term trading strategies. Now that negotiations on the future UK-EU relationship are set to begin, businesses need clarity on the practicalities of the future trading relationship between the UK and EU without delay.

“High tariffs, cumbersome customs procedures, as well as conflicting regulatory requirements can deter firms from trading overseas – so a future agreement between the UK and the EU must minimise barriers and costs, to allow firms on both sides of the Channel to continue trading as freely as possible.”

Also commenting on the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, (BCC) said:

“The devaluation in sterling seen over the past 18 months has been a double-edged sword, providing a welcome boost for some exporters, but a drag on many other firms, who report higher costs for their inputs and components. While UK firms would like to be able to source inputs on the domestic market, our evidence suggests that swapping imports for domestic supplies isn’t presently an option for many.

“If businesses can’t find or afford to source their supplies domestically, easy and quick access to foreign markets is crucial. Both the UK government and EU Commission must work together in 2018 to move towards a frictionless trade deal that works for both British and European businesses.”

We have a number of Norfolk Chamber Wall Planners available to be given out.

If you would like one, please drop us an email with the address for us to send it to and we will pop it in the post.

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As we come to the end of another tumultuous year of Brexit negotiations, Norfolk Chamber’s International Trade Manager, Julie Austin outlines the Brexit story so far…

End of ‘Phase 1’ of the negotiations

The week commencing 4 December was full of political ups and downs, with everyone waiting with baited breath for the outcome of the last-minute negotiations that would conclude ‘phase 1’ of the Article 50 talks between the UK and the EU. Although it had seemed that the ‘divorce bill’ and citizens’ rights would be the most contentious issues, the question of the border between the Republic of Ireland and Northern Ireland became the discussion that risked derailing the talks.  

Ultimately, a form of words was chosen that suited all parties:  The Republic of Ireland Government, the DUP, the Commission and Eurosceptic Conservatives. The practicalities of the border question are still unresolved, but what that week’s debate did highlight is just how contentious – and critical – the question of regulatory alignment with the EU will be in 2018.

On the other issues, the UK has, as expected, agreed to a more significant financial contribution; on citizens’ rights, there was a much-needed confirmation that the rights of UK citizens residing in the EU before 29 March 2019, and EU citizens residing in the UK before that date, will be protected.

What happens next?

It is important that the joint statement indicated the need for a start to talks on the transitional arrangement. The British Chambers of Commerce, together with the Chamber network will continue pressing for the transition to be confirmed as soon as possible:  a positive signal, a stronger commitment, early in 2018, is necessary for business certainty.

Our expectation is that this will form the bulk of the discussions in the first quarter of next year, prior to the next EU Council Summit on 22-23 March 2018. Then, slowly but (hopefully) steadily, talks on the future trade relationship will begin. However, we should not get too excited yet: these are not yet the trade talks – but are rather the talks about the talks (agreeing on a framework relationship, with details to be ironed out later).  

And the Cabinet will finally need to debate and take a collective stance on the kind of regulatory relationship it would like to see with the EU going forward – with the backdrop of various sector groups (such as for pharmaceuticals and aviation), calling for close regulatory alignment and full participation in various agencies.

What the Chamber network is focusing on now

In 2018, the BCC and Chamber network’s approach will remain pragmatic, practical and apolitical.  In addition to pressing for a transitional arrangement deal as soon as possible (the BCC has already joined forces with national Chambers of Commerce from Ireland, Germany, France, Denmark, the Netherlands and Belgium to do just that), we will be exploring potential options for regulatory alignment/divergence with the EU, stressing the importance of maintaining existing market access benefits via the existing EU Free Trade Agreements (which is not as done a deal as it may seem), as well as staying closely engaged in consultation on the UK’s future immigration system.

For any questions about Brexit and the potential impact on your business, our International Trade Team is here to help.  Please contact Julie Austin on Tel: 01603 729 706 or email: [email protected] 

The Department for International Trade (DIT) has revealed that recent talks between UK and Taiwanese officials have resulted in agreements to establish new trade dialogues on agriculture and energy.

With Taiwan planning to increase its renewable energy production from 4% to 20% of supply by 2025, largely via offshore wind farms, British companies could benefit from the opportunities presented by the expansion.

In agriculture, the new dialogue could boost the prospects of UK pork farmers, as Taiwan is the largest per capita pork consumer in Asia and Taiwan has confirmed that it wishes to lift its current ban on British pork as soon as possible.

“With its vibrant economy and thriving consumer base, Taiwan presents huge opportunities for British companies to strengthen our trade links,” International Trade Minister Greg Hands said.

British exports to Taiwan have grown by 21% in the last five years, he added, with service sector exports having increased by 60% over that time. In 2016, bilateral trade between the two countries was worth £5.35 billion.

During the talks, the two sides also signed an agreement which will make it easier for UK and Taiwanese businesses in biotechnology and pharmaceutical fields to protect their intellectual property.

In addition, ministers agreed to deepen links between the UK and Taiwan’s financial sectors, in particular by enabling the UK to offer its expertise in financing renewable energy projects and FinTech development in Taiwan.

After the meeting, Taiwan’s Vice Minister of Economic Affairs, Mei-Hua Wang, said: “As the UK leaves the EU, Taiwan looks forward both to strengthening bilateral trade flows and to expanding mutual co-operation.”

Taiwan has confidence in the British economy and considers the UK one of the priority destinations for Taiwanese investment in Europe, he added.

Norwich City Council have released their latest economic barometer. The report highlighted:

Locally

• Norwich ranks among the top 5 places to live in the UK.
• A plan to boost digital tech skills has been signed by New Anglia LEP Skills Board
• East of England bucked the national trend with an increase in the number of firms reporting growth

Nationally

• The ONS and Consumer Prices Index (reported a rising inflation rate for food and non-alcoholic beverages
• UK construction companies reported continued subdued trading conditions
• Sales of non-food items grew at the slowest pace since records began

For full details of the latest economic barometer click here.

Norfolk Chamber is pleased to announce that Dr Adam Marshall, Director General of the British Chambers of Commerce will be hosting the MPs Event on 2nd February 2018.

Adam’s principal role as Director General is to represent and champion the interests of accredited Chambers of Commerce and their tens of thousands of business members.

Having previously served as Executive Director for Policy and External Affairs and assuming the most senior role at the BCC in October 2016, Adam Marshall has the extensive experience and expertise required to chair the afternoon’s discussions between leading Norfolk Businesses and local politicians.

At this high profile policy event, Adam will be putting questions from Norfolk Chamber members to local MPs to hear their insights for attracting inward investment in Norfolk and shaping the region’s economic future.

To find out more or to join the influential delegate list visit the event webpage here.

A joint statement has been issued from the leading UK business groups, including BCC on behalf of the Chamber network, CBI, EEF, FSB and the IOD.

“We welcome the fact that the European Council has approved the progression of talks to the discussion of a transition period, and a future trade relationship.

“It is our collective view that the transition period must now be agreed as soon as possible, to give businesses in every region and nation of the UK time to prepare for the future relationship. Further delays to discussions on an EU-UK trade deal could have damaging consequences for business investment and trade, as firms in 2018 review their investment plans and strategies.

“While our members will be particularly pleased that EU citizens currently living and working in the UK now have more clarity, it’s still essential that an unequivocal commitment on their future rights is made whatever the outcome of negotiations.

“We will continue to work with the government to ensure that UK firms can overcome the challenges and take advantage of the opportunities that a new trading relationship with the EU and the rest of the world will bring.”

Adam Marshall, Director General, British Chambers of Commerce

Carolyn Fairbairn, Director General, Confederation of British Industry

Stephen Phipson, Chief Executive, EEF

Mike Cherry, National Chairman, Federation of Small Businesses

Stephen Martin, Director General, Institute of Directors

Commenting on the labour market statistics recently released by the Office for National Statistics, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:

“While the UK unemployment rate remains historically low, the second successive drop in UK employment suggests that labour market conditions are moderating a little. However, the drop in both UK unemployment and employment was at least partly due to the rise in people who are now classed as economically inactive.  

“This picture was partially reflected locally, where the overall unemployment count rose slightly from 7,320 claimants to 7,495.  This is mainly due to coastal areas such Great Yarmouth and North Norfolk, showing an increase in seasonal workers claiming jobseekers allowance. 

“Norwich, Breckland and King’s Lynn& West Norfolk all saw a reduction in claimants, whilst Broadland’s claimant count remained static.   Great Yarmouth saw the largest rise from 2,585 claimants to 2,785.

“The latest data also confirms that the overall labour market continues to face a number of key challenges. While it picked up slightly, pay growth continues to lag behind price growth, which is stifling consumer spending, a key driver of UK economic growth.

“Significantly, the rise in the number of vacancies is a further indication of the persisting skills shortage faced by business, which undermines the UK’s growth prospects.

“With UK economic conditions likely to become more sluggish over the near term, it is vital that more is done to support firms looking to recruit and grow their business, including tackling the high up-front taxes and costs of doing business in the UK.”

The Eastern Daily Press want to hear from Norfolk businesses about how they fared in 2017 and what their predictions for the coming year.

2017 has been a year of political and economic uncertainty, yet Norfolk businesses are known for their resilience, which sectors have flourished and which are facing tough times?

The survey is anonymous and only takes a few minutes – have your say now!

Businesses are being invited to tell the Department for International Trade (DIT) what they think about the UK’s proposed post-Brexit trade remedy measures.

Trade remedies are currently an EU competence, with investigations, decisions and monitoring of initiatives such as anti-dumping duties performed by the European Commission.

As part of its preparations for Brexit, the DIT is preparing an independent UK trade remedy framework to be implemented by a new mechanism to investigate cases and propose measures.

It is proposed that a new body should be created to investigate trade remedy cases and make recommendations on the basis of clear economic criteria.

The DIT points out that the EU currently has over 100 measures in place on imported products originating from 25 different non-EU countries (with China the main culprit).

Where those products are important to UK industry, the Government is intending to maintain existing trade remedy measures in order to provide certainty to businesses and to ensure continuity.

In order to develop appropriate safeguards, the DIT wants to identify UK businesses that produce goods currently subject to EU anti-dumping or anti-subsidy measures, or to an associated ongoing investigation.

The consultation seeks views from those businesses on whether they support, are neutral to, or oppose the UK maintaining existing measures under its independent trade remedy framework.

Any existing measure that does not receive an application to be maintained, or does not meet the required criteria, will end once the UK regime begins to operate. Further information about the consultation can be found at www.gov.uk.

The deadline for responses is midday on Friday 30 March 2018. Responses received after this time will not be considered. 

The UK has had a relatively easy time in the EU, with English being the organisation’s lingua franca, but what will happen after Brexit when its traders will be expected to go out into the wider world?

The British Council has identified the languages that it claims British citizens should learn if the country is to prosper in a post-Brexit world.

It seems that it will not be leaving Europe totally behind as the top five languages listed by the Council in its report Languages for the Future are Spanish, Mandarin Chinese, French, Arabic and German.

Available at www.britishcouncil.org, this explains that the languages were selected on the basis of extensive analysis of economic, geopolitical, cultural and educational factors, including the needs of UK businesses, the UK’s overseas trade targets, diplomatic and security priorities, and prevalence on the internet.

The top five languages listed were found to be significantly ahead of the next five, which were Italian, Dutch, Portuguese, Japanese and Russian.

For the UK to succeed after Brexit, international awareness and skills – such as the ability to connect with people who do not necessarily speak English – will be more vital than ever, the report argues.

However, the UK is currently facing a languages deficit, with a worryingly low proportion of those aged 18-34 able to hold a basic conversation in the top five languages: French (14%); German (8%); Spanish (7%); Mandarin (2%) and Arabic (2%).

That lack of language skills is estimated to be holding back the country’s international trade performance at a cost of almost £50 billion a year, the report claims.

It is therefore necessary, the British Council concludes, to initiate a bold new cross-government, cross-party initiative aimed at sustaining improvement in language capacity over the medium to long term.

If you have any documents which may require translation, check out or translation service. All of our translators are fully qualified linguists and specialise in particular sectors. For more information please contact us on [email protected] or call 01603 729712.

The International Trade Department will be operating slightly differently over the festive season. To ensure you get your export documents returned before our closure, see our opening hours below.

Monday 18 December – Last day for Carnets, otherwise normal service Tuesday 19 December – Normal service Wednesday 20 December – Normal service Thursday 21 December – Normal service Friday 22 December – Standard e-zCerts until 11:30am. Xpress e-zCerts until 12 noon.

We will be closed from Monday 25 December 2017 to Monday 1 January 2018, reopening on Tuesday 2 January where our normal service will resume.

Our documentation prices are changing from 1st January 2018. See our 2018 price list here.