According to a press release on the GOV UK website, international visits have paid off for British businesses. In an announcement by the International Trade Secretary, Dr Liam Fox, a number of deals have been secured with overseas leaders during their visits to the UK, equating to billions worth of trade. Deals covering life sciences, transport, infrastructure and cybersecurity in Panama, Turkey, India and Qatar will bring an estimated £75 million boost to businesses.

The trade wins with some of the world’s fastest-growing economies comes as a positive sign for Britain’s post-Brexit trading abilities, in addition to boosting the nation’s global links.

The Department of International Trade (DIT) is aiding businesses in sourcing exporting opportunities to ensure prosperity for the nation.

One such deal obtained by the DIT has seen Qatar Central Bank utilise UK cybersecurity firms to secure the online financial sector. This deal is a great boost to the successful sector, which already exports £1.6 billion worth of technology globally.

Dr Liam Fox MP commented: “International visits by foreign ministers aren’t just good for the government but for UK exporters across the country too, so that local companies can expand their global reach.

“There are strong reasons for the UK to be optimistic about our presence on the world stage and this series of deals, worth more than £1.9 billion, showcases Britain’s world-leading capability in key sectors such as cybersecurity and life sciences as we leave the European Union.”

Direct flight routes will help to widen business shipping solutions for businesses looking to export between the UK and these countries. Developments have already been seen with Jet Airways announcing a new direct flight route between Manchester and Mumbai; from autumn, flights will operate four times a week.

The welcomed news brings positivity to businesses who saw success last year with export rates of goods and services up by 12.1%. As the UK prepares to leave the EU, the DIT is working to deliver a new Export Strategy that will outline the government’s goals for business exports.

Although, there is still some way to go. Britain will only have a few weeks to negotiate deals with several countries after the EU refused to help Britain extend any of the current trade agreements until the signing of the Brexit withdrawal treaty. And this is why Fox’s recent accomplishments are a big victory. However, taking a look at where Britain stands regarding trade deals with other countries, opportunities and defeats can be seen depending on your outlook:

  • European officials have stated that EU’s trading partners will not let Britain benefit from any of the current trade deals in place with major players Japan and South Korea. Agreements between Britain and these countries will need to be arranged after Theresa May signs the final legal document of the Brexit deal.
  • An aggressive and protectionist US trade policy is imposed on everyone, including its closest allies. It is thought that the 25% import trade tariffs on steel and aluminium are just the start, and this could be difficult for the trading relationship between the UK and the United States despite Trump promising that a trade deal with Britain would be done “very, very quickly [because] there is no country that could be closer than our countries.” The US is Britain’s biggest trading partner after the EU, representative of 16.2% of the nation’s external trade. However, as the trade surplus currently favours the UK, it may be that America seeks to equal out the imbalance in trading deals.
  • Britain has its eyes firmly on Australasia, keen to amend a previously ditched trading arrangement back in the 70s. Australasia is also of interest to the EU, who have just affirmed that EU ministers can start negotiations with New Zealand and Australia; however, talks are expected to be lengthy as both parties look to push favourable terms for goods and services, in particular, agricultural products, and this may give the UK an edge to secure a beneficial deal first.
  • Non-EU countries will be negotiating in the dark with the UK as FTA talks are yet to come, with implementation dependant on when, or if, the UK leaves the EU Customs Union (something which seems very likely considering the recent MP vote) and what the future UK-EU trade arrangement will look like.

A repetitive theme of many Brexit pieces is that the future is still uncertain despite a new Brexit strategy revealed, and this can cause worry for many organisations who are left in a state of flux. Organisations need to streamline their business models to ensure they are in the best position to weather through Brexit. Get in touch with our team to see how our extensive analyses can save you money, improve efficiency and make your business future-proof.