By William Bain, Head of Trade Policy at the British Chambers of Commerce
International trade brings huge benefits to UK companies and the wider economy. As firms continue to adjust to the post-Brexit trading environment, the government needs to be clear about the path ahead and do everything it can to help business. Trading conditions are tough right now. The BCC’s latest research shows SME exporters are simply treading water. In Q3 of 2023 half of all exporters saw no change in overseas sales, and a quarter reported a decrease. If we want to remain one of the world’s largest economies, then we need more firms selling goods and services internationally.
The legal framework and accompanying policy must also underpin the move to more trade being done digitally. Half of the UK’s trade is facilitated digitally, and around 85% of the UK’s services exports are digital in their delivery. The Electronic Trade Documents Act 2023 has provided a major impetus to goods trade digitalisation, but policymakers around the world are also looking to Single Trade or Customs Windows to simplify the interfaces and data inputted by traders to make trade more efficient.
That’s why the King’s Speech should include a Trade and Customs Bill, which gives confidence to businesses and prepares them for the digital trade expansion ahead. The legislation should include two key elements. Firstly, it should provide for the reforms in data management required to underpin the UK’s Single Trade Window (STW). Secondly, the Bill should give the Secretary of State powers to create and make appointments to an Exports Council.
The government first proposed a STW back in 2020. The plan is to create a single data gateway at UK borders for traders to complete their import, export and transit obligations. Cutting red tape for businesses involved in global trade is always welcome. The BCC has consistently said that if it is done right the further embedding of digital trade through the STW has the potential to make exporting and importing much similar. But there is much groundwork still do to if we are to have a fully functioning STW system beginning rollout next autumn. That’s why starting to make the data management changes now in legislation is vital.
Establishing an Exports Council is an idea the BCC has been championing since the publication of our 2023 Trade Manifesto. We need greater co-ordination to bring more consistency to our export performance. The proposed Council would draw upon official and trading data to calibrate UK exports strategy, particularly focusing on boosting our services, green, life sciences and advanced manufacturing exports. Legislation in the King’s Speech giving power to the Secretary of State to create a new statutory Exports Council would be a hugely positive move.
The UK quickly needs to catch up with our international partners on export performance. It’s a key element to achieving the sustained economic growth we all want to see. Trade policy that is more coordinated would be welcomed by the businesses we represent.