Importance of international trade
26% of all businesses say international trade will be more important as a result of the pandemic. While only 5% say it will be less important. This gives a clear indication of the growth opportunities many firms believe overseas expansion can offer.
The Trade Barometer makes it clear that most transport and logistics companies expect Brexit to have a material impact on their operations. But nevertheless, more than half believe the European Union will continue to offer the best opportunity for international growth.
According to the research, the general bureaucracy associated with international trade, as well as the specific regulatory issues likely to emerge after the end of the implementation period on 31 December, are seen as major challenges to operating overseas. It’s estimated that the number of customs declarations, as a result of Brexit, will increase annually by 200 million. Businesses who have only ever traded in Europe will now need to complete customs documentation for the first time, while also coming to terms with requirements such as rules of origin, third-country rules, incoterms (these specify who’s responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities), health certification, duties, and import VAT and so on.
We’re working with an international trade specialist who can provide guidance on what actions your business should be taking to prepare for the forthcoming changes, as well as training on all the key elements of international trade.