The proportion of UK smaller companies exporting abroad has fallen following Brexit. “One exporter in eight has stopped selling to the EU temporarily or permanently – and another tenth are considering doing so,” says Lucy Monks of the Federation of Small Businesses, which represents small businesses and the self-employed.
Around a fifth of these companies are currently still exporting their goods or services abroad – according to the association, this is the lowest level since the beginning of the pandemic, when restrictions caused trade to collapse overall.
Great Britain left the European Union at the end of January 2020 and has also not been a member of the EU customs union and internal market since January 2021. The Brexit trade agreement agreed at the last moment ensures freedom from customs duties in most areas. Nevertheless, there are difficulties in trading due to increased bureaucratic requirements.
“Small companies want to trade and expand into new markets, but they still face hurdles,” said Monks, international relations officer at the industry association. These included, for example, higher delivery costs and more papers to be filled out.
The association hopes for future simplifications through the planned digitization of trade controls. Monks warned that the British government must also take into account the challenges and needs of smaller companies when negotiating further trade agreements.
