Tackling trade in 2024
Date published:
The Chamber’s latest column for The Journal by Callum George, policy adviser.
It’s a shared feeling across many workplaces that the first month of the year has been incredibly busy, and has gone by in a flash.
If there’s any area of policy that highlights just how fast things are moving, it’s international trade.
Here in the North East, trade is a core component of our economy – it’s worth just under £30billion annually. Encouragingly, post-COVID trends show that this is on a positive trajectory. Although, as we’re seeing, geopolitics can often cause unpredictable changes.
But in recent weeks, we’ve seen some predictable changes in the news. Businesses will have welcomed the stability in the Northern Ireland Assembly. This is significant for businesses across the UK as it has paved the way for new, post-Brexit trade arrangements that will see reduced checks and paperwork required for goods going from Great Britain into Northern Ireland.
Conversely, from January, businesses now have new paperwork to consider when it comes to food and produce as part of the government’s new Border Target Operating Model. Businesses are worried that EU food exporters may look to make up any extra costs this may incur with price increases. The model is set to be expanded in April this year when new checks on medium-risk foods will be required, although businesses still feel a sense of uncertainty in how this will be carried out.
Now, I know what you’re thinking, “why haven’t I heard of this before?”. Whilst your average Joe doesn’t need to know, businesses certainly do – and there’s the issue. Businesses are telling us that they’re finding out about changes far too late to prepare effectively.
Recent figures published by the British Chambers of Commerce suggest that the vast majority of exporters aren’t aware of new rules for trading with the EU when it comes to sustainability and taxes. With the EU being the North East’s biggest trading partner – bigger than the rest of the world combined – it’s crucial that if businesses don’t know, they get to know, and fast. In a nutshell, new trading rules will mean increased paperwork, potential cost increases, and the occasional frustrated outburst in the office…
As a Chamber, we’ll continue to work on updating our members on these policies through our international consultancy service, as well as through webinars and news releases. Additionally, ahead of the spring Budget next month, we have urged Chancellor Hunt to consider ways in which the government can provide timely advice and support on these issues.
If you’re a member of the Chamber, and you’re concerned about how these issues may affect your business, as ever we’re more than happy to support and represent you as best as we can.