Brexit promised lucrative trade deals and new freedoms. But even less than three years after leaving the EU, many companies are struggling with obstacles or have even given up.
From dpa
12/30/2022 – 12:14
LONDON – The percentage of smaller UK companies exporting abroad has fallen following Brexit. “One in eight exporters have temporarily or permanently stopped selling to the EU and another tenth are considering doing so,” says Lucy Monks of the Federation of Small Businesses, which represents small businesses and the self-employed.
Currently around a fifth of these companies still export their goods or services abroad: according to the association, this is the lowest level since the beginning of the pandemic, when the restrictions caused the general collapse of trade.
Great Britain left the European Union at the end of January 2020 and as of January 2021 is no longer part of the EU customs union and internal market. Brexit trade deal agreed at the last moment guarantees duty free in most areas. However, there are difficulties in trading due to increased bureaucratic requirements.
“Small companies want to trade and expand into new markets, but still face hurdles,” said Monks, head of international relations at the industry association. These included, for example, higher delivery costs and more paperwork to fill out.
The association hopes for future simplifications through the planned digitization of trade controls. Monks warned that the UK government must also take into account the challenges and needs of smaller companies when negotiating further trade deals.
