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1、07/06/2022INDEPENDEN T P U B L I C AT I O N BY#0809R AC O N T EU R.NE TBREXIT ANDINTERNATIONAL TRADEE-DOCUMENTS ARE MAKING TRADE FINANCE MORE ACCESSIBLETOP TIPS FOR SMES MOVING INTO FOREIGN MARKETS1206THE UKS FIRST POST-BREXIT FTA SIGNALS A SHIFT IN STRATEGY16R A C O N T E U R.N E TB R E X I T A N D

2、 I N T E R N AT I O N A L T R A D E 0302/brexit-trade-2022raconteurraconteur.storiesDistributed inAlthough this publication is funded through advertising and sponsorship,all editorial is without bias and sponsored features are clearly labelled.For an upcoming schedule,partnership inquiries or feedba

3、ck,please call+44(0)20 3877 3800 or email Raconteur is a leading publisher of special-interest content and research.Its publications and articles cover a wide range of topics,including business,finance,sustainability,healthcare,lifestyle and technology.Raconteur special reports are published exclusi

4、vely in The Times and The Sunday Times as well as online at The information contained in this publication has been obtained from sources the Proprietors believe to be correct.However,no legal liability can be accepted for any errors.No part of this publication may be reproduced without the prior con

5、sent of the Publisher.Raconteur Mteff McGraths business,Something Wicked,is all about womens empower-ment.Edgy,kinky,luxury and leath-er.At the same time,McGrath is adamant that this shouldnt mean the exploitation of women in anoth-er country,which is why her brand is all about being British as well

6、.It uses a careful collection of suppliers across the supply chain,with the leather polish sourced from an award-winning beekeeper in Lon-don,stockings sourced from a rare surviving hosiery manufacturer,while a female saddler in St Albans makes handmade cuffs and collars.Despite trying to keep the w

7、hole manufacturing process in the UK,Something Wicked is still the kind of small outfit that has suffered since Brexit,somehow evading the divi-dends pro-leave ministers promised from leaving the EU.From attending trade shows in Paris and New York,selling whole-sale and direct to consumer and migrat

8、ing to a new ecommerce plat-form,Something Wicked was on the road to an exciting endeavour but the Brexit“cliff edge”led to the end of EU orders.McGraths is one of the many busi-nesses in the UK and EU that incurred the wrath of Brexit red tape,many of which had supply chains that stretched beyond t

9、heir own borders leading to higher costs,delays and increased bureaucracy.Throw in all kinds of unpredictable factors,such as the pandemic,glob-al conflict and future uncertainty,and traditional business models are being continuously tested,especial-ly when they have to import and export goods.In re

10、sponse,business models have had to be adapted for survival but this might not be a bad thing.As well as re-envisioning how busi-nesses operate,these upsets have caused business owners to build sustainability,business continuity and resilience into their operations,while staying ahead of the curve an

11、d trying to anticipate the next thing.Assessments have clearly laid out the increased costs that new border arrangements have added to busi-nesses following Britains exit from the EU.These might arise from paying intermediaries to complete paperwork;government or port fees;or correcting administrati

12、ve errors due to unclear new rules and procedures.Smaller businesses lack the same resources,staffing power and financial stability to respond to these administrative burdens as larger enterprises,which can relo-cate and leverage more financial assistance.Brexits impact on small businesses has thus

13、been seemingly disproportionate as they find it harder to export to the EU and whose business performance is hin-dered by burdensome regulation.“A fifth of small firms currently export the lowest point since the spring of 2020 when restrictions aimed at halting the spread of Covid first took effect,

14、”says Lucy Monks,who is head of international affairs at the Federation of Small Businesses.“At the same time,one in eight small exporters have temporarily or permanently stopped sales to the EU and a further one in 10 are con-sidering doing so,she adds.Tasnime Rotherham,business owner of Very Craft

15、ea,says that dif-ficulties exporting after Brexit meant she couldnt capitalise on,say,a viral post that captured poten-tial international customers.The complexity around sending goods abroad with the red tape involved made her stop sending goods to the EU.And as a small business,she did not find the

16、 fluid developments easy to understand.Each passing month since Brexit,she discovered more things she and her peers didnt know about,like the code you have to have on every pack-aging,without which the package will be returned and sometimes that postage would not be refunded.Each time a new issue hi

17、ndered the business owner during this period,the price for the consumer would go up,she says.Customs would also hold things up but no one,it seemed to Rotherham,understood what was happening or had the right paper-work.Rotherham says she has had to suspend shipping internationally,which has hindered

18、 her growth.As well as shouldering the impact of Brexit,other global uncertainties have directly and indirectly impact-ed small businesses.For instance,Covid-19s sudden onslaught meant that the brick-and-mortar shops McGrath was supply-ing with her garments were closed during much of the lockdown an

19、d so werent taking stock.Before the impact of Brexit red tape,Rotherham also saw purchases of her loose-leaf tea and embroidery kits paused during the pandemic because they were considered as simply“nice to have items”.It is not only supply that has been affected by the global uncertainty;there have

20、 been demand shifts,too.Covid-19 saw many households pri-oritise essential goods over services like hair salons but reopening meant a sharp reversion on what goods and services consumers were spending.For Natalie Quail and her premium oral care at-home teeth-whitening brand,SmileTime,there was an un

21、expected demand that they frus-tratingly couldnt meet.“Everyone had their smile full front and centre every day on Zoom.So we saw an increase in demand,”says Quail,“but we strug-gled at the beginning to meet that demand with our supplier because factories had shut down in the US Sophia AkramTom Barr

22、ett via UnsplashTheres no question that crises create an opportunity.Its important to remind ourselves just how innovative and creative we were in the first six months of CovidSophia AkramFreelance journalist with an interest in foreign policy,human rights and global development and their crossover

23、with business and lifestyle,featured in Al Jazeera,Vice and other outlets.Brittany GolobA commercial content editor at Raconteur.Topics she covers include supply chain and logistics,communications and marketing,business strategy,sustainability and corporate culture.Amy NguyenResearcher and writer,fo

24、cusing on the nexus between sustainable business,fashion and supply chains.Regular contributor to Forbes and sustainability and lifestyle publications.Ouida TaaffeEditor of Financial World,the magazine of the London Institute of Banking&Finance,and has covered the telecoms market.MaryLou CostaA busi

25、ness writer covering the future of work,sustainability,innovation,technology,startups and more.Her work has featured in The Guardian,The Observer,The Evening Standard,Business Insider,Sifted,Stylist,Digiday,Marketing Week,UNLEASH and others.Alec MarshAn author and journalist.He is editor-at-large of

26、 Spears magazine and contributes to titles as diverse as The Spectator online and The Field.Charles Orton-JonesPPA Business Journalist of the Year,former editor of EuroBusiness,specialising in fintech and high-growth startups.ContributorsBREXIT AND INTERNATIONAL TRADEWeathering the storms:small firm

27、s,big challengesInternational shocks,disrupted supply chains and red tape have combined to rising operating costs.How can SMEs adapt to thrive?B U S I N E S S M O D E L SSraconteur-mediaPublishing manager Joana RuffleDeputy editorFrancesca CassidyManaging editorSarah VizardSub-editorsNeil ColeChris

28、RyderCommercial content editorsLaura BithellBrittany GolobReports editorIan DeeringDesign/production assistant Louis NassDesignCelina LuceyColm McDermottSean Wyatt-LivesleyDesign directorTim WhitlockIllustrationKellie JerrardSamuele MottaHead of productionJustyna OConnellR A C O N T E U R.N E TB R E

29、 X I T A N D I N T E R N AT I O N A L T R A D E 0504and Asia.”Even when factories started to reopen after a few months,she says difficulties persisted at international ports.Dr Monika Paule is the CEO of Caszyme,a Lithuania-based research and development company in the field of CRISPR-based molecula

30、r tools,whose clients include innova-tive corporations and startups,mostly in the US,Europe and Asia.The pandemic brought Caszyme multiple challenges,in particular,as an industry player that relies on labo-ratory work which cant be done remotely and uses specialist materi-als that have an expiry dat

31、e not dissimilar to food.The stockpiling,says Paule,ties up the financials and holds back investment.That said,the need to move fast to avoid waste means meticulous and advanced planning that has done away with their previously lean business model.The war in Ukraine,trade wars and embargoes have fur

32、ther pushed some away from Asian suppliers and toward those closer to home.The conflict also meant Simply Wickeds expansion into international orders to Russia hit a wall,as their drop shippers could no longer access that market due to sanctions.“For the last three years,it feels like Ive had a base

33、ball bat and I keep having to bat away one thing after another,just to try and keep chang-ing,”says McGrath.Business models have certainly been adapted,including by replac-ing popular just-in-time global man-ufacturing supply chains with just-in-case arrangements.Businesses in EU-member coun-tries l

34、ike Lithuania particularly small businesses also have to con-sider whether keeping the UK as an export market is worth the addition-al effort,paperwork and cost,according to Rasa Udavinyt,who is the director of international trade development department at Innova-tion Agency Lithuania.Those with a h

35、igh dependency on this market will integrate the addi-tional internal and external processes to deal with the bureaucracy.Others will turn to ecommerce if they have consumer-orientated businesses.Udavinyt notes how geopolitical developments,such as the trade war with China and certain embar-goes,hav

36、e disrupted Lithuanias high-tech industries,particularly its laser industry,which depends on components from China.In response,“Lithuania is focusing on diversification and looking for new markets that relate both to exports and to import the supplies,”Udavinyt says.That might mean more talks with a

37、nd suppliers from Taiwan or the US.That lesson of diversification is universal across industries and jurisdictions as busi-nesses have learnt to seek additional income streams.Common learnings from the past few years reveal two key themes to prepare for challenges and uncertain-ty to ensure continui

38、ty and resilience in business operations:monitoring the landscape;and joining networks and business communities to share resources and information to help respond to unexpected shocks.For instance,Paule says,to build resilience it is important to have a broad mindset,while keeping up to date about g

39、lobal and events can help with anticipating future dis-ruptions.For many,that means pre-paring for a possible recession and shrinking economy and therefore,reduced demand.Connecting with larger business networks and associations can also help to level the playing field for smaller enterprises,partic

40、ularly those that are marginalised.The London Chamber of Commerce and Industry notes that there is a further disproportionate impact on small businesses run by particular communities of colour.The impacts between these communities will dif-fer but Richard Burge,CEO of the London Chamber of Commerce

41、and Industry,notes there is often unacknowledged racism from the rest of the world toward some of these businesses.“Then there is access to advice and services,which can dispropor-tionately hit businesses because they just arent part of that loop,”says Burge,acknowledging that the importance of incl

42、uding bodies such as the Black Business Association within the chamber rather than sit-ting outside of it.years ago but without swaying from its mission.“Its a manufacturing business at its heart,”she says,and her pivot built on the rising sentiment in Britain to reshore production and build new bra

43、nds.McGrath started incorporating made-to-order fulfil-ments from other businesses by utilising her existing machinery and staying within the undergar-ment segment of the market.“Its almost like sticking with what we do but we can help other people develop a brand.If we can support another brand to

44、set up or to manu-facture in the UK,why wouldnt we?Its growing the skills,and that next generation of skilled man-ufacturing coming back to the UK would be a great,great thing to happen,”she says.As long as small businesses can access the support,information and resources they need to inno-vate,dive

45、rsify and adapt,they may be able to weather whatever incom-ing storm is on the horizon.Jaromir Chalabala/EyeEm via Getty ImagesBusiness School,says there may be a silver lining to the need to react to uncertainty.“In the earliest six months of Covid companies came up with innovative new products and

46、 ways of offering their own service.What is difficult but important is to remind ourselves just how innovative and creative we were in that period,”he says add-ing that its easy to fall back into old ways of working.Each business that survived is likely to have had to pivot or invoke an additional r

47、evenue stream.Quail had to stockpile and is thinking about offering more hygiene over cosmetic products to weather any downturn,while Paule says that Caszyme had to take their business planning process to granular levels with a forward-looking approach.For Rotherham,its important for her to focus on

48、 her local customers and find more stockists,while McGrath has adapted her business into something quite different from what it looked like three or four If small businesses can access the support,information and resources they need to innovate,diversify and adapt,they may be able to weather whateve

49、r incoming storm is on the horizonAs a South Asian business owner,Rotherham felt that relevant infor-mation wasnt reaching many busi-ness owners among the South Asian communities in the UK.But she found services like the Business and IP Centre,a British Library-based initiative rolled out to certain

50、 librar-ies around the country,invaluable during lockdown to access services and programmes.Quail says industry-specific resources,in her case beauty-relat-ed forums and trade publications,can offer timely advice and informa-tion.The key thing,says Quail,is that you do the research and find solution

51、s that are best for you rather than following peoples advice blindly.In addition,owners of small businesses must learn the skill of being responsive and nimble to nav-igate future challenges.While consecutive shocks have damaged businesses and their bot-tom lines,Julian Birkinshaw,pro-fessor of stra

52、tegy and entrepreneurship at London Commercial featureEmployer of record:the secret to international expansion?As firms struggle to find talent in the UK,many are onboarding staff in locations overseas using an employer of record model.So,what are the benefits?lobal supply chain disrup-tion,rising i

53、nflation,and skills shortages are making it harder for firms to find the talent they need within the UK.So,a grow-ing number are starting to onboard and support staff in locations around the world,a trend accelerated by the shift to remote working during the pandemic.Yet hiring in country often come

54、s with additional costs and red tape,and firms are increasingly turn-ing to employers of record to help simplify the process.These partner companies act as a bridge,employing local nationals or expatriates on a firms behalf in countries where they dont have an entity.Mauve Group,one of the leaders i

55、n the space,helps UK,US and EU businesses to onboard staff in 107 countries worldwide.It also helps employers with visa and immi-gration issues,setting up and man-aging businesses in new markets,and coordinating project manage-ment requests abroad.“As an employer of record,we employ the overseas wor

56、ker our-selves,making sure they are regis-tered on the payroll in the country of work,that theyre paid correctly in the local currency,and that the right taxes and social contributions are paid on behalf of that worker to the authorities,”says Mauve Groups chief executive,Ann Ellis.“Were also respon

57、sible for making sure the employee has a contract of employment which is compliant with the labour laws of that country,and for taking care of all HR matters.All the client has to do is manage that worker on a day-to-day basis and oversee the responsibilities of their job.”Demand for Mauves services

58、 shot up after the Brexit vote in 2016,when companies in a host of industries found themselves struggling to attract the foreign talent they needed in Britain.This was partly due to new immigration rules,partly perceptions of the UK being less welcoming and partly fears about potential barriers to d

59、oing business in the future.The trend has only accelerated since the pandemic struck in 2020 and many foreign workers in Britain returned to their home countries.The normalisation of remote work-ing has also played a part,along with soaring wage inflation,which has made it less affordable to recruit

60、 within the UKs borders.“The pandemic has made hiring in-country a much more alluring option,”says Ellis.“In part,employers need to meet worker expectations in an increasingly competitive recruit-ment landscape,and that means giving them the flexibility to work wherever they want.But companies also

61、want to access a much larger talent pool,and the employer of record model allows them to do that in an affordable and efficient way.”Its not just about sourcing talent.UK companies are also increasingly looking beyond the EU for oppor-tunities to grow internationally,and here the employer of record

62、model can help.Setting up in international markets can be costly and is not with-out risk.To hire local talent who can scope out the opportunities,a UK firm will typically have to set up a new company in that country first.Yet this can take months in some places and it costs money to maintain the ne

63、w company.Moreover,if it all comes to nothing the firm may have to shut up shop again,incurring yet more cost.“The resource considerations are immense when setting up in a new market,and it might not be worth it,”says Mauves global sales man-ager Annette Ord.“However,as an employer of record,Mauve l

64、ets cli-ents dip their toe in a market with-out committing much resource.In Brazil,it often takes 20 weeks-plus to set up a branch or a limited liabil-ity company so you can hire locally,but Mauve can onboard staff in that market in two to four weeks.”Employers of record are also vital when a UK bus

65、iness decides to stay in a country for the long haul.Every market has its own labour and tax laws and staying on top of them can be time-consuming.Firms who break tax rules unwittingly may find themselves fined or blacklisted.However,Mauve has spent more than 25 years ensuring UK firms remain compli

66、ant overseas.Its team is on hand 24 hours a day to answer queries,both via its hub offices in the UK,Cyprus and Dubai,and through remote employees and external partners on the ground in every market it operates in.“The last thing you need is to hit regulatory hurdles in a new market,and so Mauve mak

67、es sure its clients avoid unforeseen risks,”says Ord.“We stringently follow local laws when setting up our solutions and companies in-country giving the client confidence in that knowledge.”Mauve has worked for a wide range of clients including large FTSE 100 companies,major US universities,technolo

68、gy start-ups and NGOs such as Comic Relief and Wateraid.In one example,it helped a UK-based software and business services pro-vider to hang on to valuable workers who decided to return to their home countries during the pandemic.“They wanted to understand any risks to the company or the employee be

69、fore they went ahead,”says Ord.“So,our in-house compli-ance department audited the sce-narios of multiple current employ-ees and explained any risks,red flags and guidelines on how to pro-ceed.It resulted in them adopting an employer of record solution for two employees in Ireland and one each in Sp

70、ain and Sweden.”In another example,Mauve helped a UK-based scientific research con-sultancy to relocate an employee to Hong Kong,where the organisation did not have an entity set up locally with the ability to employ.Mauve onboarded the worker through an employer of record solution and continues to

71、employ and payroll the staff members in-country.Since then,Mauve has helped the organisation to employ workers in India and the US,allowing it to secure scientific talent that meets the specific and unique require-ments of the business.As Ellis explains,Mauves ultimate goal is to help its clients ex

72、pand and capital-ise on new opportunities,wherever they may be.“Hiring talent abroad is becoming vitally important to businesses but it neednt be complicated,”she says.“As an employer of record,Mauve takes the stress out of the process while ensuring firms have the flexi-bility they need to build th

73、eir busi-nesses internationally.”For more information please GCompanies also want to access a much larger talent pool,and the employer of record model allows them to do that in an affordable and efficient way78%43%of UK businesses reported difficulties in finding staffof surveyed UK companies are se

74、eking to expand their operations globallyBritish Chambers of Commerce Quarterly Recruitment Outlook Q1 2022Hitachi Capital survey,2021THE UKS NEW TRADING OBSTACLESBiggest export and import-related challenges for UK wholesale and retail businesses in 2022 ONS,2022Time taken for checks at the border22

75、.5%Additional paperwork67.8%Change in transportation costs61.4%Customs duties or levies49.2%Reduced demand for products and services24.4%Lack of hauliers to transport goods or lack of logistics equipment24.6%Change in transportation costs67.7%Additional paperwork51.5%Customs duties or levies47.9%Dis

76、ruption at UK borders29.7%ExportingImportingSupply and demand:timelines have been affected by red tapeR A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 0706t probably isnt a surprise that a lot of the rules in international trade are based on English law merchant.England,af

77、ter all,was the pre-emi-nent global naval power for centu-ries.What might be more surprising is that those laws,as they stand,require trade banks to courier around 4 billion documents around the world each year.Why do they do that?Because some of the documents they handle like a ships bill of lading

78、 give title to the goods but only when the document is in paper form.Under current English law,if some-thing is not physically tangible,you cant possess it.That is why a paper bill of lading has value and an The UKs Electronic Trade Documents Bill will make it possible for international trade to use

79、 e-documentsand transaction banking at the London Institute of Banking&Finance.“Digital processes will ena-ble trade finance professionals to focus on the judgement calls that machines cant make and leave the routine work to the computers.Its a real win for the industry.”Perhaps the biggest challeng

80、e to fully digital trade,though,is that not all economies are equally ready.“The world is a diverse place,with diverse capabilities.Half the world doesnt have internet access,”South-worth says.“In some parts of the world the cost of trade is higher than its value.Its super,super important that we he

81、lp governments talk through the poli-cies and changes that are needed,”says Southworth.“The risk for every-one is that we have a fracturing of global trading.”To try to ensure that doesnt hap-pen,the ICC is working on a Digital Standards Initiative for a“globally harmonised trade environment”.The DS

82、I is mapping every country in terms of its stage of digital readiness and its digital capabilities and laws,and offers practical support.The board includes the Asian Develop-ment Bank,the World Trade Organi-zation and the World Customs Organization.However,even countries that should be able to move

83、quickly still face challenges.“Trade is a very old activity,everyone is comfortable with the systems already in place,so digitisation is also about behaviour change,”Southworth says.Still,allowing e-documentation is a historic shift in international trade and one that,done right,should be transforma

84、tive.e-bill of lading is on shakier ground.There have been calls to change this for many years and it looks as though it will now finally happen partly thanks to the harsh light that Covid lockdowns shone on the existing practices.The UKs Elec-tronic Trade Documents Bill is expected to come into for

85、ce before the end of 2022.And that is not the only major legal shift.The G7 agreed to collaborate on electronic transferable records in April 2021.The International Cham-ber of Commerce(ICC)described that decision as“momentous”.What the G7 greenlit is the back ing of the Model Law on Electronic Tran

86、sferable Records(MLETR),which was adopted by the United Nation Commission on Internation-al Trade Law in July 2017 but slow to take off.As at the end of 2021,just seven jurisdictions were on board.The MLETR is agnostic as to tech-nology;it can include information from any industry standard(which Jor

87、g Greuel via Getty ImagesOuida Taaffeoften means more information than a paper document);treats e-docu-ments as equivalent to transferable documents or instruments;and is recognised across borders.When the G7 ministers described their decision in a statement,they said:“Paper-based transactions,which

88、 still dominate international trade,are a source of cost,delay,inefficiency,fraud,error and envi-ronmental impact.”That neat summary may have low-balled the problems.The change in law that will allow e-documentation,says Chris Southworth,the secretary general of the ICC,UK,“is commer-cially,far and

89、away the most trans-formative change in trade by a long distance.What it allows us to do is sweep away all paper and bring in technology and innovation at scale.”Digitising global trade holds a lot of promise simply because the sec-tor is so vast.The biggest freight ships can carry 24,000 containers

90、,each of which requires its own paper documentation that has to be couri-ered through many hands.The Unit-ed Nations Conference on Trade and Development says that around 750 million containers were moved at ports worldwide in 2017.The costs and potential for mis-takes associated with that are one of

91、 the main reasons for the$3.5bn(2.81bn)trade gap the trade finance that isnt available to SMEs both in the UK and in emerging mar-kets because they cant afford to use the existing system.The All-Party Parliamentary Group on Trade says that more than half of SME applications for trade finance are rej

92、ected and that less than 8%of SMEs use traditional forms of trade finance.It says that“mostly manual”bureaucracy at banks means that it can cost 60,000 to onboard an SME.It sees lowering the cost of finance and bringing more SMEs into the trading system“as an imperative in the context of month-on-mo

93、nth exports falling since Q1 2019”.Research from Coriolis Technolo-gies says UK trade fell by around 18%in value terms between December 2020 and the end of February 2021 and the number of exporters,their revenues and their turnovers have been falling since Q4 2019 by between 5%and 25%.Larger busi-ne

94、sses have been doing better partly because they are better able to take bureaucratic hurdles.Those hurdles are both a function of Brex-it,but also of the stricter rules on,among other things,anti-money laundering,brought in after the 2008 financial crisis.Removing sand from trade gears,then,can only

95、 help something that the new law looks set to do.“The EU is the most sophisticated customs union in the world,”Southworth says.“Goods can flow with ease,but less than 1%of trade documents are currently in digital form.”But smoother processes are not always welcome.What about the potential for job lo

96、sses as machines take over tasks currently done by people,such as checking trade docu-ments at banks?“The reality is that its already hard to find good document check-ers,”says Alex Gray,head of trade 90%45%$1.7tnAsian Development Bank,2021WTO,2022of world trade relies on trade financeof trade finan

97、ce applications by SMEs are rejectedthe trade finance gap in 2020;an all-time highBritannia waives the rulesPaper-based transactions,which still dominate international trade,are a source of cost,delay,inefficiency,fraud,error and environmental impactT R A D E F I N A N C EIAQHow would you describe t

98、he state of international trade?The trading system has been under immense strain,but Covid and Ukraine have accen-tuated the pressure.All forecasts for global trade have been downgraded.Covid accelerated a trend toward regional supply chains,as did the rise of populism across the globe and the polit

99、ical tensions between major power blocs such as China,the EU and the US.Ukraine is uniquely challenging because it is the breadbasket for much of the world.The conflict is blocking key trade routes,particu-larly between Europe and Asia,which is affecting food,but also other commodities like energy.T

100、here are also unintended effects of political actions related to the conflict.Some indigenous commu-nities in Ecuador,for example,that rely on Ukraine and Russia for flours and shrimp,have been cut off,because with sanctions in place those trades cannot be financed.This is a good example of the com-

101、plexity of the global trading system.We saw it with the 2008 financial crisis and with Brexit,but its a reminder that we must understand how trade operates before pulling levers without offering economic support to affected communities.AQWhat trade opportunities exist for the UK after Brexit?We cant

102、 get away from the fact that the EU is essential to UK trade.Since Brexit weve seen a 20%drop in total trade with the EU and that gap wont be easy to fill.While other countries are mov-ing toward regional trading blocs to guard against global pressures,the UK is arguably more exposed than any other

103、major economy.Our long play right now is the CPTPP,which is about the UK posi-tioning itself politically.But its not immediate enough to be a trade strategy.The recent trade agree-ments with Australia and New Zea-land will have a positive impact on the UKs ability to trade into Asia,but should be vi

104、ewed in context.They mark the beginning of the UK trading independently and are a signal of the kinds of deals we can secure,but they wont scratch the surface of the mas-sive decline in trade with the EU.The UKs standout deal is the digital economy agreement with Singapore,which is a great piece of

105、leadership from the UK and has set the standard internationally.It pro-vides businesses with everything theyve wanted in terms of the digi-talisation of trade and indicates what can be done with digitalisation in future agreements.That is the UKs biggest opportunity:creating a digital environment in

106、 which trade can happen.AQWhat impact will digitali-sation have on the interna-tional trade landscape?Based on business cases that were published last year,if we can successfully digitalise trade,theres a$10tn growth opportunity in the G7 commonwealth alone.There is nothing in the trading sys-tem th

107、at comes remotely close to that kind of scale.The digitalisation of global trade is the most significant digital transformation initiative in the world.We operate in a trading system based on laws and processes from the 1800s,which still rely on physi-cal,paper documents.Covid high-lighted the probl

108、em,as trade ships were often left to sit in port for weeks while paperwork followed.It was a great illustration of the antiquity of the trade system.The technology exists,of course,but its about the application and standardisation of digital trading processes.Digitalisation comes with huge efficienc

109、y gains and cre-ates the opportunity to bring more companies into the system by driv-ing down the cost of trade.By some estimates,digitalisation can cut trade costs by 80%.Theres a prize to be had if we can achieve this goal.The UKs biggest opportunity is creating a digital environment in which trad

110、e can happenI N S I G H TChris SouthworthSecretary general ICC United KingdomA Q&A with Chris Southworth,secretary general,ICC United Kingdom,on vulnerability and opportunities in the global trade systemCommercial featurehe UKs January 2021 Brexit deal caused trading rela-tionships between Britain a

111、nd the EU to decline steeply by increasing red tape.This has been compounded by several other daunt-ing challenges,including runaway inflation,post-Covid supply disrup-tions and the Ukraine war.Though they may struggle to admit it,such systemic shocks can create fear and panic among chief executives

112、,but a good network of peer support can help them feel safe and avoid feeling stressed at difficult times.Through organised networks and forums,business leaders can quickly gain comfort by realising they are not alone in the challenges they face,and they can garner early knowledge to help them focus

113、 on opportunities and feel more confident.CEO networks can also provide coaching,mentoring and education to prepare leaders for such challenges.In volatile,stressful situations,one major challenge for business leaders is a lack of reliable information.Being part of a network of trusted members can m

114、ake a huge difference.Xavier Mufraggi,CEO at global busi-ness leader community YPO,says:“With challenges like Brexit,CEOs cant rely on online information.They need to speak to other business leaders to get a clearer picture of trends.”He adds:“Unfortunately,in some business forums,no one wants to be

115、 the loser in the room.Everyone says they are doing well,even when theyre close to insolvency.I saw this myself in other CEO forums during the 2009 financial crisis.If you cant trust what others say,youre wasting your time.”The power of leadership communities after Brexit and CovidCEO communities ar

116、e helping firms solve labour shortages and other critical challenges in the post-Brexit,post-Covid era“As a non-profit,”he adds,“the main priority isnt revenue,but rather,trust.”To reinforce this,YPO also arranges its forums to avoid members talking to direct competitors.“As Brexit-related crises un

117、fold,our members can reduce their feelings of stress because they have rapid,advance information,”says Mufraggi.“This ena-bles them to start seeing opportunities.They know they still might lose money due to Brexit.But talking to trusted peers enables them to make smart decisions before others.”YPO m

118、ember Andrew Landsburgh,director of Code Pod Hostels,says face-to-face networking events restarting post-Covid have been helpful as infor-mal discussions are a huge benefit.“One major issue were dealing with is labour shortages,”he says,“But its been comforting to find out its not just a Brexit issu

119、e.There are labour shortages across the world.Every CEO we speak to mentions it.Its also been great to learn there are pockets of talent available in India and Africa and about whats working or not in recruitment.”Mufraggi says early information was also critical when Covid hit China in January 2020

120、.YPO informed its net-work of 32,000 CEOs in 142 countries by the end of January,enabling them to prepare for the logistical disruption weeks ahead of others.In this way,leadership communities can help CEOs face any new crisis.Landsburgh says many members have recently been sharing information about

121、 how to manage inflation.“Its been amazingly useful to speak to those in developing countries who have experienced high inflation and explained where financing can go wrong and how to hedge against it,”he says.With supply disruptions,informal connections can help by putting the end buyer in contact

122、with producers to find solutions.Mufraggi says that has been highly effective with YPO mem-bers during the pandemic and the Ukraine war,for example,in sourcing medical equipment quickly.“We connect members who know they can trust each other,which speeds things up,”he says.“YPOs member-ship renewal r

123、ate is 97%and climbing.Its lonely at the top but people realise that,during a crisis,a trusted network becomes even more important and that,with YPO,youll never walk alone.”To find out more,please visit ypo.orgWith challenges like Brexit,CEOs cant rely on online information.They need to speak to oth

124、er business leaders to get a clearer picture of trendsT2%51%of CEOs expected supply chain issues to be resolved in their industry as early as Q1 2022of businesses planned to raise prices to mitigate the impact of inflationYPO,2021R A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R

125、A D E 0908Choosing a location foryour business?Discover Estonia as a gateway to EU at London Tech Week on 13th of June 2022.Honest data-backed comparison toolcomparEST IT OUT:investments in end-of-life man-agement for products”.The strategys review of labelling regulations and use of digital prod-uc

126、t passports(DPPs)is another posi-tive development.DPPs store essen-tial product data on materials that can be used by stakeholders in the textile ecosystem.If all regulated producers were to have DPPs it could facilitate repair,recycling and the tracing of harmful substances across the supply chain

127、and reduce waste.EON is a retail platform work-ing alongside The Prince of Waless Sustainable Markets Initiative Fashion Taskforce.It is creating DPPs as digital IDs for use by UK household names that include Burberry and Stella McCartney.Elsewhere,the Commission recog-nised the intrinsic link betwe

128、en fos-sil fuels and textiles when it stated:“The growing demand for textiles is fuelling the inefficient use of non-re-newable resources,including the production of synthetic fibres from fossil fuels.”The shedding of microplastics was mentioned too,but Harding-Rolls doesnt believe this goes far eno

129、ugh:“The strategy falls short of recommending reduc-ing these fossil-fuel derived fibres as a way of cutting microplastic shed-ding,”he notes.Greenwashing was also cast into the spotlight to comply with con-sumer protection laws on green claims between the UK and Europe.UK fashion businesses have al

130、ready been working to adjust communica-tions to guidance on environmental claims under the UK Competition and Markets Authority(Green Claims Code,released September 2021.The urgency of doing so is highlighted by research from the Changing Markets Foundation,which found 59%of all green claims by Euro

131、pean and UK fashion brands from the 2021 Spring/Summer collections to be misleading.For UK brands,adapting to the requirements of the strategy will be no small feat.Primark is working on aligning its business and sourcing decisions to the new guidance.Lynne Walker,director of Primark Cares,says:“Pri

132、mark welcomes any proposals that level the playing field and create the potential to drive industry-wide change.We are reviewing the EU proposal in detail but look forward to playing our part with our ongoing work and commit-ments towards becoming a more sustainable business.”Similarly,a spokesperso

133、n from the John Lewis Partnership says that the EUs Textile Strategy,Circular Economy Action Plan and Sustainable Products Initiative“will do a great deal to normalise ethics and sustainability within business practices”.The retailers 2020 Partnership Plan and inclusion of take-back solutions by 202

134、5 and commitments to use recycled and sustainable materials highlight how they are working to align their oper-ations to the EU Green Deal.Industry commentators have reacted with cautious optimism to the strategy,arguing that social due diligence remains largely ignored.Harding-Rolls sees that the“s

135、trat-egy ignores workers in the supply chain and does not create any more ambitious requirements on supply chain visibility and transparency”.It is not only NGOs that think the strategy could have gone further.Bernice Pan,founder and creative director of Deploy,a UK-based sus-tainable brand,adds tha

136、t the stakes must be higher to disincentivise retailers on overproduction and waste generation.“It should be tan-gibly pushed forward to include a ban on sending unsold merchandise to landfills and incinerators.France has introduced a levy of penalty charges or taxation on companies who do so,”Pan s

137、ays.If France can do it,why shouldnt the UK?Binding measures to incen-tivise an absolute reduction in mate-rial use,for example,through a tax on virgin materials and environ-mental impact,are missing from the EU Textile Strategy but need not be missing from UK regulations on fashion and textiles.Whi

138、le progress within Europe is welcomed many are scratching their heads as to where exactly it leaves the UK fashion industry fol-lowing Brexit.Trading relationships are critical given that the UK cloth-ing industry is the third-largest in Europe and the fashion and textile industry contributed approx

139、imately 20bn to the UK economy as of 2020,according to the UK Fashion and Travel Association.Tamara Cincik,founder of Fashion Roundtable,a UK-based think tank focused on fashion,expresses deep concerns about the divergence between the UK and its EU trading partners.“I worry about the UK being left b

140、ehind on the global stage in our sustainability ambitions.Brexit also means added costs and impacts,”she noted.The UKs fashion economy has experienced increased friction from Brexit trading complications such as a rise in customs and freight duties.Cincik highlights that of the 34,000 businesses in

141、the UK fashion and textile sector,99%of these are SMEs,and the impact incurred due to misalignment throughout Brexit is not something they can afford.Deploys Pan shares her experi-ence as a founder of a British brand that lacks the human resource to dedicate to research and adaptation of changing im

142、port-export regula-tions.She states:“Brexit has eroded favourable conditions between the UK and EU.It has made it challeng-ing for companies to navigate com-plex,divergent agendas,whilst stay-ing competitive and weathering the pandemic storm.”Alongside an increase in costs,the UK cannot afford to fa

143、ll behind on environmental progress,especially in mitigating textile waste as our landfill capacity continues to rap-idly diminish.A 2020 study by Labfresh found that the UK is the fourth-largest producer of textile waste in Europe.The EU strategy addresses textile waste.It states that,by 2024,it wi

144、ll be mandatory for brands to disclose the number of discarded products and there will be a ban on destruc-tion of unsold textile goods.For any strategy to work both in the UK and EU,it must go beyond voluntary initiatives.The 2018 UK inquiry,Fixing Fashion:clothing consumption and sustainability,wa

145、s rejected by the government on all 18 clauses that put forward ideas such as the intro-duction of a 1p garment levy to tackle fast fashion.Two years later,in October 2020,the Environmental Audit Committee said it would reo-pen the case but tangible advance-ments are yet to be made.Successful future

146、 policies require a holistic approach,incorporating environmental,social and commer-cial factors and legally binding tar-gets.What remains certain is that progress to create long-term sus-tainability cannot stop at the border of the EU,given the globalised nature of the textile value chain.How is th

147、e UK fashion and textile industry affected by latest EU policy that tackles sustainability across the global value chain?Circular strategy aims to bring sustainability to fast fashionAmy NguyenI worry about the UK being left behind on the global stage in our sustainability ambitionslargest importers

148、 of clothes,which reached a value of 154bn(130bn)in 2019,according to Eurostat.The introduction of extended pro-ducer responsibility(EPR)within the strategy will make producers responsible for the waste their products create and incentivise design decisions that would make garments easily recycled,d

149、econ-structed or repurposed at their end of life.This is vital as only around 1%of global textiles are recycled.Environmental campaigners have welcomed EPR,given the negative externalities associated with textile production,where brands and manufacturers,many of whom are British,flaunt 1 bikinis or

150、5p dresses online and dont pay the true environmental and labour costs associated with a garment.George Harding-Rolls,campaign adviser for the NGO,Changing Markets Foundation,says the promise of the EPR“could have far-reaching effects,both by making brands pay for the waste they create and by creati

151、ng n 30 March,the European Commission published the anticipated EU Strategy for Sustainable and Circular Textiles as part of its Green New Deal.In a bid to make sustainable products the norm,the strategy aims to“make textiles more durable,repairable,reusable and recyclable,to tackle fast fashion,tex

152、tile waste and the destruction of unsold textiles,and to ensure their production takes place in full respect of social rights”.How the UKs 34,000 businesses employed in the UK fashion and tex-tile sector are meant to comply with these rules after the official depar-ture from the Union in 2020 remain

153、s a grey area.Uncertainty could threaten progress on environmental sustainability as well as incur costs for the SMEs that make up 99%of the UKs fashion industry.The strategy has been designed to drive circularity and support citi-zens through the green transition as the global economy moves to deca

154、rbonise.This is especially important for Europe,one of the TRADE IN TEXTILESImport and export value of UK apparel and clothing accessories,as of 2020I N D U S T RYOExportsImportsNon-EUEU2.1bn14.3bn4.8bn6.2bnHMRC,2021R A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 1110 UK

155、TRADE AFTER BREXITSince leaving the EU,the UK has maintained many of its trade relationships through various mechanisms that quickly replicate existing trade agreements countries have with the EU.But a fully independent UK is now developing its own trade strategy.The UKs new free trade agreements ha

156、ve thus far focused on Australasia and the Pacific rim,but trade negotiations with the US and India are ongoing,and theres hope for an agreement with the GCC on the horizonBrunei DarussalamChileBahrainKuwaitOmanQatarSaudi ArabiaUAESwitzerlandJapanMalaysiaPeruMexicoVietnamIsraelIndiaCanadaUSNegotiati

157、ngConsultationPreparing negotiationsComprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP)Recent agreements with Australia,New Zealand and Singapore are important in their own right,but they also factor into the UKs longer-term strategy of gaining a trading foothold in Asia and

158、 the Pacific region.In February 2021,the UK applied to join the CPTPP:an agreement among 11 Pacific-rim countries across all four hemispheres.Signatories include Australia,Canada,Japan,Mexico,New Zealand,Peru,Singapore,Vietnam,Brunei Darussalam,Chile and Malaysia,although the agreement has not yet c

159、ome into force in these last three.The UK has pre-existing trade agreements with Australia,Canada,Chile,Japan,Mexico,Peru,Singapore and Vietnam,and has an agreement in principle with New Zealand,but the government believes the CPTPP will provide better engagement with the Indo-Pacific region,among o

160、ther future markets.Gulf Cooperation Council(GCC)In October 2021,the UK launched a consultation on trade with the GCC.Total trade value between the UK and the GCC reached 30bn in 2020,but Westminster hopes that a new agreement will provide a sophisticated framework for trade specifically in emerging

161、 industries,as well as updates for goods and services that have become central to the trading relationship between the partners.Negotiations look set to begin in 2022 and the topics high on the list of priorities will likely be agriculture and the food and beverage sector;technology,life sciences an

162、d digital trade;and renewable energy and infrastructure.The UK also hopes a new agreement will deepen its engagement with the GCCs healthcare and education sectors.The GCC is composed of Bahrain,Kuwait,Oman,Qatar,Saudi Arabia and the UAE.The UK-Australia Free Trade Agreement is the first new trade a

163、greement signed by the UK since leaving the EU.Covering goods,services,digital trade and intellectual property,the agreement removes most tariffs between the two nations,though some restrictions on agricultural trade will remain for up to 15 years.In addition,UK citizens under 35 will be able to liv

164、e and work in Australia more easily.The economic impact of the agreement is expected to be limited:UK GDP is projected to increase by 0.08%.Although it is estimated that most economic sectors will benefit from the deal,three sectors agriculture,forestry and fishing;semi-processed foods;and manufactu

165、ring of transport equipment will likely see a negative impact.Name UK-Australia Free Trade AgreementSigned December 2021Australias total trade value with UK in 2021 14.4bnAUSTRALIASingapore and the UK signed the UK-Singapore Digital Economy Agreement at the end of February.Another agreement in princ

166、iple and thus not yet in force,the trade deal will cover digitised trade in goods and services,and provide a framework for foundational components of a digital economy,including data flows,cybersecurity,digital contracts and invoicing,regtech,fintech and payments.It will also catalyse tech partnersh

167、ips between the two signatories aimed at addressing AI and other emerging technologies,lawtech and digital identities.Though its impact is difficult to predict,total trade between the UK and Singapore was valued at 16bn in 2020,with financial services trade alone accounting for roughly 10%of that to

168、tal.Singapore has previously signed digital partnership agreements with Australia,Chile and New Zealand.Name UK-Singapore Digital Economy AgreementSigned February 2022Singapores estimated digital services trade value with UK in 2021 6.44bnSINGAPOREAlthough the UKs trade negotiations with the US have

169、 been stalled for over a year,on 27 May the UK signed its first state-level agreement with the US state of Indiana.The Memorandum of Understanding with Indiana aims to strengthen investments and imports and exports between the two parties,particularly in the areas of renewable energy,advanced manufa

170、cturing and pharmaceuticals.It is also being championed as a springboard for more state-level agreements in the future.Indiana imports roughly$1.4bn(0.93bn)of goods from the UK,and conversely the UK is the states seventh-largest export market.INDIANA,USTwo months after its first post-Brexit trade de

171、al,the UK signed a second agreement in the Australasia region,this one with New Zealand.The UK-New Zealand Free Trade Agreement is currently an agreement in principle,meaning both countries must take the agreement through their domestic parliamentary procedures before it takes effect.When it does co

172、me into force ideally by the end of 2022 the agreement will remove most tariffs on imports and exports,but protections will remain for sensitive agricultural products.In addition to goods,the agreement will cover services,government procurement,digital trade and intellectual property.The agreement i

173、s expected to increase UK GDP by 0.03%,and will positively impact most assessed sectors,with the exceptions of agriculture,forestry and fishing,and semi-processed foods.But all economic effects positive and negative will be small.Name UK-New Zealand Free Trade AgreementSigned February 2022New Zealan

174、ds total trade value with UK in 2021 2.5bnNEW ZEALAND21.4bntotal trade in goods and services between the UK and Canada24.3bntotal trade in goods and services between the UK and India4.2bntotal trade in goods and services between the UK and Mexico5.0bntotal trade in goods and services between the UK

175、and Israeltotal trade in goods and services between the UK and Switzerland38.4bnR A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 1312Total UK MSMEsBrompton Fast becoming one of Britains great exporting success stories,the tale of how the west London folding bike-maker Brom

176、pton went global is down,it seems,to serendipity.Its first export market was built by the passion of people who bought the bike when they lived in London,according to CEO Will Butler-Ad-ams,and then took it along with the lifestyle home with them.Thats how the firms first overseas business began in

177、places like Hol-land and Germany.When Butler-Adams took over Bro-mpton in 2008 it was making 6,000 bikes a year.He said they would get that to 25,000.“It was clear we couldnt do that in the UK alone,”he says.“We knew enough from the experience that we had in the Neth-erlands and Germany that this bi

178、ke that Andrew Richie had created was relevant to different cities.It wasnt just a London thing.”Armed with that insight But-ler-Adams got airborne,visiting places where he thought“this bike could do OK”.Dont overthink it,he advises,dont waste time on elabo-rate plans and strategies just fly economy

179、 and“go,go,go”.Talk to people,have meetings.Listen.Then come back and if you still think it could work,then invest time and effort fleshing out a plan.This,broadly,is what Brompton did across the world,building busi-nesses with sole distributors non-executive chair in each territo-ry to galvanise gr

180、owth.Look at what Dyson achieved,building a mul-ti-billion-pound business sucking dust off the floor.“This product is just as relevant to society and a lot more fun,”Butler-Adams says.“We can get to a billion.”EttingerWhen Robert Ettinger joined the fam-ily business,the luxury leather goods manufact

181、urer Ettinger,in 1990,he packed his suitcase and flew to New York.Having made some appoint-ments in advance,he nonetheless found himself pounding the streets,samples in hand,knocking on doors.“It was hard but it worked for us in the end,”he recalls.Thirty years on,the US market,in which the royal wa

182、rrant-holders products are available at some 60 outlets,accounts for around 10%of the firms revenues.“Although they speak English and youd think it would be an easy mar-ket to move into,its not,”Ettinger says.“Weve really worked hard at it;we connected closely with them.Now its the fastest-growing m

183、arket in the world for us.”As well as heading over there once or twice a year,Ettingers team keep in close contact with their US cus-tomers by regular telephone and Zoom calls.With bigger clients the firm also provides special collec-tions of dual-branded items with distinctive leather colours which

184、 are therefore exclusive to those brands.Theyve also engaged a New York-based PR firm and advertise there.“You just have to get the name out there in America and keep on shout-ing,”he says.bikes there,through a franchise partner,partly to keep down invest-ment costs.In the US,Brompton is using its o

185、wn store network.In Ger-many,the firm works with the exist-ing retail network.Fully 75%of the 100,000 bikes that the firm makes in Greenford are exported to some 48 countries worldwide but Butler-Adams is clear thats not good enough.“Look at the markets were in,”he says.“The UK should be 3%of sales

186、not 25%on a pro rata basis.”His new goal is for sales in Germany,China and the US to exceed UK levels within five years.Thats driv-en by autonomous boards with a Westend61 via Getty ImagesInternational expansion is a tricky business for SMEs.They must establish local relationships,build brand recogn

187、ition,overcome language and cultural barriers and grapple with administrative burdens.But the harvest could be well worth the toil.Here,three small businesses offer some timely tips to help ambitious SMEs make a success of overseas expansionGoing abroadAlec Marshoperating in dozens of territories pe

188、ople they believed with the pas-sion to build the brand in each market.“The first phase was to get on a plane and travel,”says But-ler-Adams.The second phase was to bring the distribution in-house:“Eventually we wanted to grow fast-er than they the distributors could.”So from around 2005,Bro-mpton b

189、egan buying out the distrib-utors,and working directly with retailers in markets a model now established in more than 16 territo-ries,including Japan(“A real test for us,”says the CEO).The firm went to mainland China in 2010 and now sells around 15,000 BEIS,2021SMALL-TIME EXPORTERSShare of UK MSMEs

190、exporting goods and services abroad in 2020,by company sizeEmbassies have staff who will assist in selling and even help find retailers or sole distributorsFor Ettinger,whose grandfather founded the firm in the UK in 1934,this international outlook is in the blood.“Weve always been keen travellers a

191、s a family,”he explains.In the 1960s,his father took the brand to Japan,“before almost any-one was over there selling our sort of product or any luxury product there”.Today Japan is Ettingers biggest global market,accounting for 12%of all sales,and through its sole distributor,whom Robert began work

192、ing with 25 years ago,the brand has two standalone stores in Tokyo.Outside Japan and Korea,where Ettinger also has a distributor in place,the firm sells directly to retail-ers,including across mainland China,which it entered in 2014 and where Robert believes could be big-ger than the US or Japan.The

193、 big-gest sales outlet for the brand now,though,is its website through which it commands nearly 30%of all sales and these go anywhere in the world.In all,90%of the luxury goods made in the firms Birming-ham factory are exported.The crucial thing,Ettinger says,is not to be daunted by the task.“Do you

194、r research,”he says.“Embassies have staff who will assist in selling and even help find retailers or sole distributors.Go on a trade mission.You need some help to start and the government has very good ways of doing this.”Chapel DownFor English winemaker Chapel Down,exports are still relatively smal

195、l beer.After all,its been the work of the past 20 years to crack the UK market and change consumer attitudes here.But having been served at Buckingham Palace and 10 Downing Street,and with distribu-tion established in the likes of Wait-rose,Marks&Spencer and Sainsburys,it is clear that this is one E

196、nglish sparkling wine produc-er that has found its feet.Yet while Kent-based Chapel Down is still eyeing up domestic growth the chief marketing officer Mark Harvey says English producers sup-ply around 4.5 million of the 200 million bottles of fizz Britain guz-zles each year,compared to around 20 mi

197、llion coming from Champagne attractions abound from growing its global footprint.The first benefit,of course,is the prospect of additional sales.So Chapel Down is targeting the 10 biggest champagne-buying markets in the world,the largest of which is America.“The biggest opportunity for us all in Eng

198、lish sparkling as a category is the US,”Harvey explains,noting that it is also somewhere that brand Britain plays well.“The early trac-tion when we started to export before Covid was strong and its real-ly starting to pick up again now that most of the restrictions have been lifted.I think,long term

199、,the US is the interesting market where we can scale up.”Chapel Down began working in the US in earnest in 2017 and does so by approaching wine opinion-formers sommeliers at super-premium and luxury bars,restaurants and hotels,and independent wine dealers,in key cities.In concert,Chapel Down pitches

200、 its vintage Three Graces tra-ditional method sparkling wine,selling it at the same price as the main French Champagne houses sell their non-vintage product.“That approach really clicked,”Harvey says,noting that the US now accounts for half of exports.“Som-meliers are interested in the fact that its

201、 from a relatively new wine-growing region so theyre engaged in the story and in terms of the proposition for their custom-ers,thats bang for your buck.”The rest of the world is still per-haps 15 years behind Britain in its appreciation of English sparkling wine,believes Harvey,so theres a large unt

202、apped market.As a result,Chapel Down aims to make exports a tidy 5%of its sales by 2026.The key,says the marketing chief,is to remain focused on the most important cities and build there thereby avoiding the trap of low vol-umes in too many markets.The international approach will also reap other rew

203、ards.“Having listings in high-profile accounts in key cities around the world is powerful,”Harvey says.“Many of our customers travel and to see Chapel Down in top restaurants in New York,California or Hong Kong is all positive for the brand.”S M E S18%Micro24%Small 29%Medium18%Commercial featurehat

204、does a translation agency do?As Europes largest language services provider,we often receive this ques-tion.Our message is that translation is just the tip of the iceberg when it comes to language services and that you should consider your agency an essential partner for interna-tional business.When

205、chosen wisely,your translation agency can be a growth enabler and help you reach new markets.Naturally,an agency should be good at the basics.You want to work with translators with not only native pro-ficiency,but who live and work in your target market.Language is all about nuance.Only a local can

206、really express your communications in the vernacular.Even in English,you wouldnt expect a Liverpudlian to use the same words as a New Yorker.Reaching new markets in a post-Brexit worldAI,CMS and SEO can help make your international business expansion a success,but Grinne Maycock,vice-president North

207、 America,UK and Ireland,Acolad,explains why employing human expertise is crucial to reaching markets abroadIt is also vital to employ translators who are specialists in your technical field.Legal texts require a legal expert the vocabulary is too sophisticated for a non-expert to handle with aplomb.

208、Language services go far beyond translation.Transcreation is where specialists adapt and localise market-ing messages for their home market,moving beyond source content.A slogan used in Denmark may not go down well in Saudi Arabia.A transcre-ator knows how to retain the heart and soul of the campaig

209、n,while ensuring it resonates with your target market.Above all,we are a consultancy for global growth.Our network of 60 offices in 25 countries,with a network of 20,000 translators,gives us unri-valled insight into world markets.The mediums through which you communicate are also important.Campaigns

210、 often incorporate audio and video.A strong agency will be able to work across all media,creating sub-titles and voiceovers to ensure that your message gets across.Search engine optimisation(SEO)and online marketing is another major part of marketing.An agency can take the lead on your international

211、 SEO cam-paigns,researching keywords and pro-viding strategies to maximise product visibility in a new market.Where a translation partner can really shine is how they embed with your work practices and simplify pro-cesses.Emailing documents back and forth gets old quickly.At Acolad,we can connect to

212、 clients content man-agement systems(CMS)and platforms via an API.This means,for example,we can directly update translations when needed.An ecommerce site may have hundreds of pages to translate.Rather than cutting and pasting words,this integration allows each translation to be automatically update

213、d on the clients site,saving massive amounts of time and labour and eliminat-ing errors.Our library of connectors ensures we can integrate with almost any client platform.Artificial intelligence and machine learning now play a key role in transla-tion.Documents can be translated in an instant and po

214、st-editing by a human can refine the text when needed.Acolad currently employs around 250 experts in our research and develop-ment department.Our goal is to com-bine technology with human expertise.Translation is therefore so much more than words.Acolad currently offers 70 distinct services,includin

215、g everything from digital marketing services to quality assurance.Clients rely on us for insights into their target markets and count on us to accompany them through every step of their campaigSo,what is a translation agency?If you want to accelerate exports and crack new markets,its time to rethink

216、 what that phrase really means.Ready to accelerate your global growth?Visit us at WA partner for global growth“We have established a solid partnership with the Acolad team in the last year.They currently help us localise our Marketing and Product content into over 10 languages,but they do much more

217、than that.They have played a critical role in partnering with our technical teams and educating stakeholders.They essentially act as our extended localisation team,helping us plant the seeds for scaling our brand,content and product internationally.”Cristina Trivio Castillo,Head of localisation,Spri

218、nklrWhen chosen wisely,your translation agency can be agrowth enabler and help you reachnew marketsR A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 1514Even if there was action by the UK government,there would probably be a long lead-in time before anything happened.Its ha

219、rd to look that far forwardThe political landscape resulting from Brexit is yet to provide long-term certainty for British businesses relying on shippingshift in customers shipping through Humber ports instead of the South East because of the pandemic,Brex-it and the need to ensure resilience in the

220、 supply chain.ABP has invest-ed in the infrastructure supporting its Humber ports and sees its free port status and location remain a motivator for trade with Europe.“For trade that flows through the central and northern parts of the UK,its quicker and cheaper.A lot of logistics operators have start

221、ed to work that out,so we think the flow is partly a longer-term shift and partly a response to some of the concerns about conditions,”Williams says.Williams and Aylott both note that shippings resilience shone through the Brexit and pandemic period.Regarding the political landscape,Aylott adds:“The

222、 facts are that during the pandemic,the UK and Ireland and most of Europe didnt starve.Thats the success of shipping.”With a new government in place in Stormont and the further delay in the implementation of customs checks on EU imports,the seas remain stormy.But shipping will,as Aylott says,keep sa

223、iling.border has created things in peo-ples minds about problems,”says the UK Chamber of Shippings direc-tor of policy Peter Aylott.This,he says,has resulted in companies pre-dicting disruption due to Brexit and pre-emptively changing their ship-ping patterns to keep trade moving.Aylott adds that th

224、ey know at the front end that the market is distort-ed by companies taking pre-emptive decisions to prevent disruption due to Brexit,the pandemic and the war in Ukraine.But,he says:“Were still seeing issues where there have been consignments of foodstuffs in France that have been refused.”One of the

225、 main industries affect-ed by this uncertain political and economic landscape is the food and beverage sector.Customs checks on food and beverages,which were due to begin for items arriving from the EU or from Northern Ireland in July 2022 have now been postponed again until 2023.Industry bodies and

226、 companies alike have clamoured for these epending on the port of call,the shipping forecast for post-Brexit trade ranges from bleak to slightly concerning to business as usual.The challenge is a pervasive cloud of uncertainty that hangs like a pall over the Irish Sea.The political backdrop perpetua

227、t-ing this is the 2019 Northern Ireland Protocol,which effectively proposed a border in the middle of the UK,drawing a line in the sea between Northern Ireland and Great Britain to impose customs checks on goods shipped from the EU to the UK.Businesses relying on shipping and with 95%of goods import

228、ed and exported into and out of the UK via maritime ports that is a significant number have had to adapt to these shifting tides.Goods that may have once gone through the Calais land bridge or through south-eastern UK ports are now finding their way to the UK via northern ports like those in the Hum

229、ber or via Ireland and Northern Ireland.“The real issue is that the John Lamb via Getty ImagesBrittany Golobwait-and-see pattern.Even if the UK government did act,there would probably be a long lead-in time.Its hard to look that far forward.”Addressing the challenges facing the food and beverage ind

230、ustry,Stu-art Machin,COO of Marks&Spen-cer,and a cohort of co-signatories from across the sector wrote directly to the prime minister to appeal.The letter states:“As we look ahead to 2022 and beyond,we need to contin-ue that government-food industry partnership to build a sustainable,resilient food

231、sector for the long term.”And one of the key issues highlighted in the letter is“friction-less trade for Northern Ireland and EU goods movements”.“We need a long-term sustainable solution for goods movements into Northern Ireland,”the letter says,outlining technology that could facilitate easier tra

232、nsfer of goods without delays or product loss due to customs controls.This would entail“an audit scheme with requests from certification and physical checks based on risk and specific intelli-gence,and penalties for failure”.The London School of Economics Centre for Economic Performance found in Apr

233、il that imports from the EU to the UK since the imple-mentation of the Trade and Coop-eration Agreement decreased by 25%relative to global imports to the UK.Because of the delay in the implementation of customs checks,the trade agreement and the Northern Ireland Protocol are still causing uncertaint

234、y.But the systems are in place to deal with shifts in trade patterns,what-ever the political outcome.There are several indicators point-ing to a shift in shipping patterns,in some cases seeing goods moving through Irish or Northern Irish ports or UK ports other than in the South East.The rate of goo

235、ds pass-ing through Dover had steadily increased from 25%of the total share of imports in 1992 to a peak of 46%in 2017,according to research by the University of Hull.The Brexit referendum in 2016 may have caused that pre-emptive resilience plan-ning on the part of importers and exporters to shift g

236、oods to a more diverse range of ports.The share of goods passing through Dover in 2020 was 38%.Department for Transport data from 2020 due to be updated for 2021 this September notes that London processed the most tonnage at 47.4 tonnes,fol-lowed by the Humber port of Grims-by&Immingham with 45.6 to

237、nnes.Dafydd Williams,head of policy,communications and economic development(Humber)at Associat-ed British Ports(ABP),has noted a The shipping newschecks to ensure the safety of food products.That need has to be bal-anced with the challenge of where customs checks will occur and the delays they may a

238、dd to the process.But,with Northern Irelands role in post-Brexit trade still uncertain,companies are still left at sea in terms of planning.A spokesman for the British Meat Processors Association,which rep-resents the meat industry,said the landscape was too uncertain now to determine what will come

239、.“Nothing has changed,”he says.“The govern-ment signed the Northern Ireland Protocol in 2019 and theres been a lot of talk about a variety of things that could happen.But we have a series of hypotheticals.”He did add,though,that compa-nies have adapted to the new normal in post-Brexit trading,and wh

240、ile frictionless trade would be more effective,decisions at the company or industry level will have to wait until the government determines its customs strategy.“Were in a TRAFFIC CONTROLLeading UK sea ports by freight handled between Q1 and Q3 2021(in million tonnes)GOV.UK,2021S H I P P I N GDLondo

241、nGrimsby&ImminghamLiverpoolSouthamptonMilford HavenTees&HartlepoolFelixstoweDoverBelfastForth38.7%36.8%25.2%22.2%21%20.4%16.3%14.7%14.3%13.8%Commercial featureSupporting UK companies with innovative trade finance solutionsUK Export Finance hasnt just explored the world to find the best clean energy

242、opportunities for UK exporters,it can also provide the financial support to pursue themetween 2020 and 2021,UK Export Finance(UKEF)pro-vided 12.3bn to launch UK exporters into the global supply chains.When private finance van-ishes and the market gets tough,UKEF is leaving no stone unturned to help

243、exporters sell internationally.Supporting over 100,000 UK jobsIf youre an exporter who needs financ-ing,UKEF can help.The sums involved are huge.UKEF provided 12.3bn during 2020-21 alone;79%of which went to SMEs and all of it involving UK supply chain operators.The knock-on effect is massive.Up to 1

244、00,000 UK jobs were supported by UKEF in just 12 months.This is because finance makes trade happen.And UKEF provides insurance,guarantees and loans where the private sector will not,backed by the strength of the governments balance sheet,to keep the wheels of trade turning.This is not just for big b

245、usiness.Last year,individual support was as small as 297,all the way up to 1.1bn.With UKEFs support ready to reach hun-dreds of global markets,the scale of the potential for UK exporters is massive.Connecting UK companies with global opportunitiesSometimes knowing the opportunity exists is the first

246、 step towards unlock-ing it.And UKEF connects companies with overseas opportunities in many ways.It helps:UK businesses,large and small,to access the finance,insurance and guarantees they need to export;overseas investors to buy British prod-ucts and services,with direct lending;commercial lenders t

247、o invest abroad,by guaranteeing their loans;UK exporters trade with peace of mind,by insuring them against default;global businesses to expand their UK-based supply chains.To further connect UK businesses with overseas opportunities and buyers,UKEF hosts supplier fairs.These are one-day events that

248、place relevant UK SMEs directly in front of international buyers,who are actively looking for UK products and services for their over-seas projects.The benefits for the UK are clear.In just one year,UKEF managed to help connect more than 500 UK companies with inter-national opportunities through sup

249、plier fairs before the pandemic.One such company was a Scottish family-run firm,BHC Ltd.,which won a 20m export contract to provide 8,000 tonnes of steelwork and 100,000 square metres of metal decking for the Kumasi Market in Ghana after being introduced to a partner at a UKEF-run supplier fair even

250、t.Brian Hewitt,managing director at BHC Ltd says:“UKEF helped us secure this huge international contract.Not only has this helped our business,but it has also bolstered the local economy during these difficult times.”UKEF also has a network of interna-tional finance executives that engage with overs

251、eas governments and multi-national companies looking to buy from the UK,creating trading opportunities for British businesses.Through financing,UKEF has sup-ported UK businesses to export to a diverse range of projects,these include providing guarantees of 500m to finance several offshore wind proje

252、cts in Taiwan.One of these,the Greater Changhua 1 Offshore Wind Farm,has a capacity of 605 MW,powering more than 650,000 households,enabling Taiwan to generate 20%of its power from renewable sources by 2025.Within the provision of these sites several UK companies benefited,including Trelleborgs from

253、 the North West and East Anglian-based firm Seajacks.“This contract is an impor-tant milestone for Seajacks,”says Sebastian Brooke,Seajacks COO.“This is the second major UKEF-backed project we have supplied in Taiwan,and we are proud that British vessels will be installing these offshore turbines th

254、at will help power Taiwans green energy revolution.”UKEF has become a shock absorber to the marketsUKEF is a pathfinder and treasure hunter for clean energy opportunities in hundreds of countries globally,with over 7bn in sustainable deals since 2019.It is currently ranked first in the TXF global su

255、stainable finance league tables for 2021,among its Export Credit Agency(ECA)peers.During the pandemic,UKEF stepped up and became a shock absorber to the markets,says Richard Simon-Lewis,a member of UKEFs executive committee with over 20 years of experience working in renewable energy and clean growt

256、h sectors:“It increased its capacity to support exports to around 120 markets making it easier to support international projects with long-term growth potential to increase UK trade and create oppor-tunities for British business.”Well still offer clean energy finance throughout choppy watersUKEF has

257、 now expanded its support with new and upgraded products that will benefit those in the green econ-omy.It has a hefty 2bn direct lending facility dedicated to financing clean growth projects overseas.It has also introduced more flexible products,the Export Development Guarantee(EDG)and the General E

258、xport Facility(GEF),which give companies vital financial backing for their general financing needs,not only those linked to specific contracts.UK businesses are invited to connect with UKEFs export finance managers around the UK on how to take advan-tage of these schemes,with UKEFs expertise and opp

259、ortunities going way beyond offshore wind,solar PV,desali-nation and healthcare.Simon-Lewis says:“We know the mar-kets are not magically going to recover following the pandemic.We need to be there for those SMEs and when the going gets tough,we need to keep going and turning stones over to track tho

260、se opportunities down for these companies in their hour of need.”UKEF promises that this financial support will remain even as the reces-sion bites and private finance is hard to access,Simon-Lewis adds.“We com-plement,not compete with the private sector,or commercial banks in provid-ing liquidity.W

261、hen the market tightens up and the tide goes out in terms of risk appetite,thats where ECAs come into their own.”To find out more,please visitgreat.gov.uk/trade-finance/UKEF helped us secure this huge international contract.Not only has this helped our business,but it has also bolstered the local ec

262、onomy during these difficult timesBThe amount of money UKEF provided from 2020-21,largely to supply chain operators and SMEs12.3bnUKEF,2022R A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 1716With the UK experiencing labour shortages in highly skilled indus-tries such as f

263、inancial services and technology,Australian talent could more easily plug the gap under the new FTA,Boata suggests.Jonathan Beech,managing direc-tor at immigration law firm Migrate UK,outlines some of the new colonial UK and Australia were once firm trading allies.Its said that in the 1880s,less tha

264、n 100 years after the British colonised the famed land down under,the UK was the source of 70%of Australias imports and the destination for up to 80%of exports.The 20th century painted a differ-ent picture.Australia,keen to prove its independence,began favouring trade deals with the US and Asia,whil

265、e the UK gravitated towards its European neighbours.Yet 2021 saw this partnership revived,with the new UK and Australia deal becoming the UKs first official new free trade agree-ment(FTA)since exiting the EU.The deal,which is expected to increase UK GDP by 0.08%,ushers Britain into a new post-Brexit

266、 era ripe for capitalising on the southern continents rich agricultural,mineral and energy resources not to mention incentivising young Australian workers to help plug the former mother countrys talent gap,in a period when job vacancies outnumber candidates.It also points to strengthening ties with

267、Asia,setting a precedent to establish more bilateral agreements.But how do these new opportuni-ties stack up?Tariffs averaged 2.8%for UK firms importing from Australia and 2.4%for Australian firms importing from the UK before the FTA was agreed,notes Ana Boata,global head of macroeconomic and sector

268、 research at Allianz Trade.The FTA removes these,Boata confirms,estimating that UK businesses can expect export gains worth up to 150 mil-lion a year.“Those in the UKs automotive,machinery and equipment,and agrifood sectors are set to be the biggest winners.Meanwhile,Australian exporters of precious

269、 metals and stones as well as stand-ard metals are currently account-ing for two-thirds of the UKs imports,”she says.Yet,before getting ahead of our-selves,Boata adds that the real rewards wont be reaped until next year,as supply chain bottlenecks are expected to prevail until then.Bilateral trade a

270、greements can also lead to the homogenisation of standards and regulations that are much needed following the pandemic,says Irina Surdu,associ-ate professor of international busi-ness strategy at Warwick Business School.Many of the problems and delays experienced during the pandemic in industries su

271、ch as medical device manufacturing and pharmaceuticals,she adds,have been related to red tape,as well as varying policies and legisla-tion in the medical sector.A trade deal with Australia could also help safeguard the UK from the energy crisis,spurred by Russian sanctions,by tapping into Australias

272、 resources.“So,exchange of knowledge,tech-nologies and expertise is most wel-come and would reduce the costs of moving forward in these indus-tries,”she says.on the table.UK companies will be allowed to sponsor Australian professionals under certain visas,without needing to prove that a UK national

273、could have been hired instead.Professional qualifications will be better recognised across each mar-ket,with increased collaboration between accreditation and regula-tory bodies.Meanwhile,Australians interested in undertaking work in agriculture and agribusiness in the UK will ben-efit from more vis

274、a pathways.“With the lack of restrictions and easy application process,plus potential to switch into a longer-term immigration status,the pro-posals look attractive,”Beech says.Perhaps the most lucrative oppor-tunity that the FTA between the two countries opens is the door for the UK to join the Com

275、prehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP).Consisting of Australia,Brunei,Canada,Chile,Japan,Malaysia,Mexico,New Zealand,Peru,Singa-pore and Vietnam,the partnership brings 10 additional markets for UK exporters to target.The appeal is evident.According to McKinsey,Asia

276、 as a whole is fore-cast to account for 52%of the worlds purchasing power by 2040 and is economically currently worth 8.4tn.The UK government has reached the second phase of its negotiations to join the bloc.Once admitted and with Australias sup-port,it means many exports to member states will becom

277、e tar-iff-free a huge boon for UK busi-nesses,Surdu says.MaryLou CostaThe world economy increasingly centres on the Pacific regionTRADING DOWN UNDERThe UKs trade with Australia(billions)reciprocal options.Australians on the Working Holiday Makers pro-gramme will have expanded rights.They will be abl

278、e to stay in the UK for up to three years with an increased cut-off age of 35,and vice versa for UK nationals going to Australia.More straightforward sponsorship requirements are also The revival of a centuries-old partnership is carving out new economic pathways for a post-Brexit BritainContinental

279、 market shiftsF R E E T R A D EBloomberg/Contributor via Getty ImagesAThis is an important step towards meeting the Global Britain vision that Brexit promised but is yet to deliver onDIT,2022“UK businesses have taken a hit during the pandemic and desper-ately need to be able to find new market route

280、s for their services.“Most notably,the CPTPP has developed a manual for how digital trade should work effectively.This is an important step towards meet-ing the Global Britain vision that Brexit promised but is yet to deliver on,”she says.This is tipped to lead to a 460m uptick in annual export gain

281、s for British exporters,Boata estimates.This is thanks to the move not only increasing demand for UK goods but also ensuring that UK busi-nesses are in a better position to expand their digital reach into CPTPP markets.Meanwhile,new membership applications from China,Taiwan and South Korea mean that

282、 the CPTTP is set to“emerge as an influ-ential forum for the setting of inter-national regulatory standards and rules in areas such as digital trade and cross-border data flows,that are relevant to an increasing amount of global trade,”according to a statement from multinational law firm Pinsent Mas

283、ons.A UK gov-ernment announcement acknowl-edged that joining the CPTPP“puts the UK at the heart of a dynamic group of countries as the world economy increasingly centres on the Pacific region”.As individual post-Brexit deals with New Zealand and Singapore have quickly followed that with Australia,pr

284、ecedent is being set for additional deals of this nature to be negotiated.Its in the UKs interest to do so,Surdu says.Industries such as renewable energy,military and civil technology,computing,artifi-cial intelligence,as well as pharma-ceuticals and medical equipment,are seeing a rise in vertical i

285、ntegra-tion(supply chains becoming owned by one parent company)and reshoring,as national security requirements have heightened.“In this context,trade agreements serve as routes to avoid trade barri-ers and share knowledge and exper-tise that may reduce the costs of doing business and growing new ind

286、ustries,”Surdu explains.“As countries seek to build country-spe-cific advantages in certain related industries,such as digital,financial services,more of these bilateral agreements are expected between the UK and other nations.”Whether the UK-Australia trade partnership has been renewed in light of

287、or despite the two nations shared and often controversial his-tory now seems irrelevant.Both countries stand to gain signifi-cantly from creating space between the partners they came to rely on in the recent past,and forg-ing a future together.Boris Johnson meets with then Australian PM Scott Morris

288、on,preparing to announce the UK-Australia Free Trade Agreement201520162017201820192020202120051015ExportsImportsTotalTrade balanceCommercial featureow companies trade around the world has been trans-formed by digital customs and technology.From our border controls and trading compliance sys-tems to

289、customs declarations and bills of lading,the old analogue ways of importing and exporting are being consigned to history.Rather than being negative,this pre-sents many benefits and opportunities for those businesses willing to get on the front foot and adapt quickly.Trade is able to move faster,barr

290、iers can be broken down,costs are reduced and digitised records become easier to access while being kept safe and secure in the cloud.However,some companies are still reluctant to enter this digital age of trade,fearing it will be expensive to put the right infrastructure and tech-nology into place.

291、Others havent even thought about the industry-changing adjustments heading toward them.Most still use paperwork and spread-sheets,passing files to third parties via email and asking them to enter the information into software connected to HMRC systems manually.The risk of human error doubles and the

292、 need for compliance with HMRC is put at risk.In October,after five years of prepa-ration time,a huge change is coming when the HMRC customs system(CHIEF)will close for imports and be replaced by something called CDS(customs declaration service).Firms need to be ready for the additional data customs

293、 intermediaries will need.Exports switch over in March 2023.CDS is just one reason why adapt-ing to digital has taken on greater urgency.Embracing it will save time and can help avoid problems later.Ive witnessed too many examples where a lack of data evidence has cost firms VAT reclaims and huge fi

294、nes.Customs compliance is going digitalWith a new customs system set to go live in early 2023,Liam Smyth,managing director of ChamberCustoms,examines whether companies are prepared for this changeSpeed is another critical factor.Removing manual input and any poten-tial errors increases efficiency wh

295、ile connecting directly into HMRC and all port inventory systems around the UK provides faster release of goods.Using smart technology allows com-panies to create a single source of truth between an existing enterprise solu-tion such as SAP and what has been declared to the customs authority by an i

296、ntermediary like ChamberCustoms.This means if problems occur or investigations are instigated,all the evidence to deal with these challenges is ready and at hand,no matter how far back HMRC might want to dig.No more frantic searching for evi-dence of exports,proof of origin and bills of lading.No mo

297、re exchanging emails,downloading documents and risking a keying error.No more waiting on customs clearance;unsure if it has been granted.No longer will multiple custom doc-uments with multiple commodity codes be tricky to execute fast.And no longer will mistakes happen when claiming duty-free import

298、s due to confusion about which trade agree-ment should apply.At ChamberCustoms,we have built a digital solution for international trade that any UK-registered company can take advantage of to solve all the issues mentioned above.Our customers remain in control of the declarations being made on their

299、 behalf.Their existing data is uploaded to our platform,and smart technology puts it into the right data fields in the HMRC system.Then a highly-skilled customs agent checks the data to ensure compliance with HMRC.There is a full audit trail and ongo-ing updating of HMRC rules to ensure nobody runs

300、into trouble by missing a change in legal requirements.HMRC fines and penalties can be very costly if a customs declaration is wrong each one is effectively a tax return.A real-time dashboard also shows our customers when HMRC has granted permission to proceed,and it is fully searchable.Any UK compa

301、ny of any size can benefit from our system and there is clear and unambiguous pricing.Whether youre a CEO or head of finance at a firm that imports or exports,you must understand how the UK border is changing and that compli-ance with HMRC customs policy ulti-mately stops with you.Greater visibility

302、 and stronger solu-tions are needed to succeed in this fast-changing world of international trade,so I encourage you to embrace the change;the future of your business relies on it.For more information please visitchambercustoms.co.ukHICC UK&Coriolis,2021Switching to digital trade processes can deliv

303、erefficiency savings for traders across the globe 225bnreduction in trade transactions cost 80%R A C O N T E U R.N E TB R E X I T A N D I N T E R N AT I O N A L T R A D E 1918Print media cant generate leads.WWr ro on ng g.Some of the advertisers in this report will generate over 200 leads thanks to

304、Raconteurs integrated print and digital campaigns.Email to find out more.E-RESIDENCY AFTER ESTONIACountries or cities e-residency programmesEstonia is the gateway to UK-EU tradingveryone loves a shortcut or life hack.For UK compa-nies looking to improve the way they trade with the EU,a scheme offere

305、d by Estonia looks like one of the best around.Estonia is the pioneer of e-resi-dency,a sort of honorary citizen-ship.With it comes the ability to open a company in Estonia,able to trade across the EU.It does away with paperwork,stopping invoices pinging over the EU-UK border,sim-plifies tax and adm

306、in and,most remarkably of all,can be done with-out even leaving our own shores.Creating an Estonian company via e-residency is becoming the most efficient way to trade with the EU.One entrepreneur to take advantage is Rhian French.Shes the founder of a PR agency called Three Trees and a Map,which op

307、erates in the niche area of digital mapping and geospa-tial industries.Her clients include Ordnance Survey,Brussels-based EuroGeographics and German satel-lite imagery company UP42.When it became clear the UK was leaving the single market,French realised her business was at risk.“My clients are most

308、ly in Europe and they were concerned about the complexity of buying services from the UK,”she says.Then,at a conference,she heard a delegate from Estonia mention the e-residency scheme.It had attrac-tive details.Estonian e-residents are supplied with an Estonian ID card,which brings access to 5,000

309、online services.One of the options availa-ble to e-residents is the right to found an Estonian-registered com-pany via the nations legendarily slick online interface.A key detail is the absence of any physical requirement it can be done remote-ly.In fact,e-residents gain no physi-cal rights at all:v

310、isa requirements to live and work in the EU are unchanged.She researched various post-Brex-it strategies.“It was daunting,”French says.“Terribly grown-up and complicated.So I looked at Estonian e-residency.”with incorporation and running a company which comes as part of the mission to make Lithuania

311、 the most entrepreneurial nation in the EU.”The economic gains brought to Estonia by e-residents is a clear motivator.One in five new Estonian companies is established by e-resi-dents.“Lithuania is committed to supporting our new e-residents,”Armonait says.“We want them to start with e-residency and

312、 use that as a bridge to learn more about our country,and maybe in the future to visit and invest.”So far 4,048 Brits have taken up Estonian e-residency,with 857 com-panies started.For French,it has been a life-saver.“I want to travel to Tallinn and thank the e-residency team personally,”she says.As

313、 word spreads,she wont be alone.Estonias e-residency scheme allows Brits to found a company in the EU in the simplest way possible She applied in early 2020.Was approved.Picked up her card.And then founded a new company in Estonia.“I thought Id misunder-stood.It was so easy.I couldnt quite believe i

314、t was the answer.”To make life even simpler,she used the official website to find an agency which specialises in help-ing freelancers and small firms,called Xolo.“It was so quick and efficient,”says French.“Im not one for giving away free publicity,but they are fantastic.”She connected her Xolo acco

315、unt with a euro bank account provided by fintech company Wise.Now she can invoice her clients in euros from her new Estonian company.“I couldnt work without it,”she says.“I take a monthly salary,as advised by Xolo,who sort out my invoices and VAT.It really is straightforward for someone who is into

316、words,not numbers.”And she still hasnt been to Esto-nia:“Im desperate to visit.My expectations are set very high!”So who is the scheme right for?The Estonian e-residency team is admi-rably candid about what it can and cannot do.You cannot,for example,evade rules of origin regarding man-ufactured goo

317、ds.Nor can you evade tariffs or quotas,where applicable.“We have two big groups using it:business consultancy and IT,”says Katrin Vaga,a spokesperson for the Estonian e-residency scheme.“Any-thing involving digital services,dig-ital products,and ecommerce.”Estonia offers a 20%flat rate tax on divide

318、nds.If profits are retained,GoVisaFree,2022I thought Id misunderstood.It was so easy.I couldnt quite believe it was the answerCharles Orton-JonesB O R D E R SEthere is no tax to pay.Whether taxes are payable in the UK or Estonia requires a tax specialist to advise.“E-residency doesnt mean auto-matic

319、 tax residency”,Vaga says.“If you establish a company through e-residency and you are based in the UK your personal taxes are still paid in the UK.Corporate taxes depend on your business model.”The line is that Estonia isnt a tax haven,its an admin haven.The Tax Foundation rates Estonia as num-ber o

320、ne in the world for tax efficien-cy,calculated across 40 metrics.Paper and crude PDF forms were eliminated years ago.HM Treasury can only dream of Estonias digital mastery.This is a nation where 99.6%of bank transactions are done electronically,and 96.3%declare income online.Estonia is so efficient

321、at tax and corporate law that 40%of new com-panies in the country are formed by EU residents,with Germany the number one source.It says some-thing that Germans would rather register a company in Estonia than their homeland.There is a parallel with Delaware in the US,where two-thirds of the Fortune 5

322、00 are regis-tered.“We have some research comparing us to Delaware,”reveals Vaga currently yet to be published,but likely to be favourable,judging by her huge smile.Are there any rivals?Portugal is launching e-residency.Lithuania launched e-residency in 2021,with upgrades planned for summer and is m

323、odelling its scheme on Estonias.The Lithuanian minister for the economy and innovation,Aurin Armonait,says,“Lithuania is implementing the e-residency scheme starting in July.“Entrepreneurs in the UK will be able to establish a company in Lith-uania without stepping out of their offices in London.Our aim is to min-imise the bureaucracy associated BrazilSouth AfricaUSThailandPortugalLithuaniaJapanDubaiEstoniaUkrainePlanningImplementedSingaporekarson via Unsplash