Recap: International Trade Forum March 2025
Date published:
The forum began with an overview of NECC’S coming up events by Eve Halliday. Sarfraz Mian, our Chair, pointed out the objective of the International Tade Forums, which is to provide a learning platform for companies that are beginning their international trade journey and meet other companies that are already trading internationally. Also, by participating in these forums, businesses can hear from various experts in the field of international trade. Sarfraz also emphasized the importance of trade fairs in finding new customers.
We had two experts with us, Daniel McPartlan, Export Finance Manager at UKEF and Paul Wheelwright, Regional Director, Llyods Bank. We were joined by our valuable members, who shared the challenges they are facing.
Challenges Faced:
- Competitive disadvantage because of low cheap Chinese products.
- UK government becoming less supportive. There used to be a trade access programme, and companies could get grants to visit and participate in exhibitions. It is not there any longer.
- Funding and working capital.
- High steel and energy prices.
- Difficult to manufacture competitively against cheap Chinese products.
- Converting interest into actual sales.
- Finding new customers.
- Geopolitical conditions.
- US tariffs.
- High internal costs.
Solutions proposed:
- Developing new lines.
- Participating in trade fairs.
- Tapping into trade associations to get access to government funding.
- Creative legal approaches.
- Alternate sourcing.
- Part manufacturing in US to get duty breaks.
- Looking at other markets.
- Making use of CPTPP.
Sarfraz Mian discussed the Memorandum on US-UK trade and threw in a few questions:
How could trading with US be made easier?
Which other countries would be of interest?
How can BCC and other Chamber associations help with that?
Daniel McPartlan took us through the various support available through UKEF.
UKEF is an independent government department. They work closely with DBT. They do not offer direct funding but work with banks to offer funds to businesses.
Their products are:
- Buyer Finance: Offering the overseas buyer finance terms to purchase from the UK seller. Transactions for £1mn +. They are working with a new bank Elevate for transactions of £250 thousand. Hopefully this will open up new markets for smaller businesses.
- For fulfilling orders – Exporter Guarantees.
Contract specific schemes, Bond support schemes, export working capital schemes, non contract specific schemes.
- Insurance: Credit insurance, export insurance.
- Other support: Supplier fairs, network of country heads, alternative finance – secondary market lenders, non-banking financial institutions.
The aim is to support 1000 SME by the end of 2029. Can no longer support oil and gas industry. However, based on the definition of SME business on the Companies House, and not the EU definition, UKEF can support on fossil fuel provided businesses can prove that they are already involved in renewables or have a plan to transition within 5 years. If the business is involved in oil and gas but what they are seeking support for is a completely different project, then they can get support if they can prove that. For government-based contracts in Ukraine UKEF has reached the maximum limit but there maybe some support available for private based contracts. For certain countries like the Sub Sahara, there may be country specific limits.
Paul Wheelwright spoke about
- The International Trade Portal service of Llyods bank which is a one stop shop for data businesses involved in international trade.
- Bonding requirements.
- Working capital requirements
- New product from Llyods – capital import finance.
- Funding a contract using a mix of UKEF support, structured trade, lending type facilities and commercial trade instruments.
- Trade lending to manufacturing businesses with specific contracts.
Our next International Trade Forum will be on USA where we will have experts amongst us to discuss the impact of US taxation and trading with USA.