Posted by

Sukhdeep Dhillon, Global Economic Advisor

03 Jan 2013

The BCC has long been an advocate of international trade and the need for UK businesses to actively pursue opportunities to export to the global market.  Individual businesses that exploit the untapped potential of exporting to a wider market not only benefit themselves, but also the UK economy, through balancing the trade deficit.  In the past, the financial crisis in the eurozone has created uncertainty for exporters who have traditionally exported to Europe, however with increased access to emerging markets there is a notable shift away from this trend.  The so called “CIVETS” (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa) are now the favoured global emerging markets which have not been as affected by the economic crisis as traditional importers of the UK’s goods. 

The BCC understands the decision to become an exporter is influenced by a number of factors which is why we remain committed to promoting exports and making sure issues surrounding this transition are minimal.  The government announced in its Autumn Statement that it will provide £70m in a new drive to support UK exports – something that the BCC has long lobbied for.  We believe certain measures are in place to help UK businesses export, but more needs to be done. We have called for targeted export measures, such as the introduction of Export Vouchers. Export Vouchers would encourage businesses on the cusp of exporting, or looking to expand into new markets to seek out and access the support they need, from public or private-sector sources, with minimum bureaucracy.

The significance of international trade varies within each economy. Some nations perceive the principal benefit of exporting to expand their domestic market or to aid economically depressed sectors, while other nations rely on trade for a significant part of their national income and for the supply of goods for domestic consumption. International trade continues to act as the backbone of the modern and commercial world and encourages growth for a nation's economy.  We are increasingly seeing exporting as a key driver for success, particularly for SMEs.  UK businesses must continue to embrace oversees opportunities so they are able to drive an export-led recovery in 2013.