INTERNATIONAL TRADE


Ian Greenaway (inset) says Brexit problems have been costly so far


“And Northern Ireland is


probably complicated than the EU in some respects,” adds Ian. The team at COBA Automotive,


which makes plastic extrusion parts used in rubber seals on cars like the VW Golf and Toyota Yaris, is dealing with teething issues in the automotive just-in-time supply world. Input from the Chamber’s international trade team has helped it to iron out issues with new documentation. Sarah Kimm, a warehouse supervisor at the company’s base in Fleckney, Leicestershire, says: “Because we prepared well, it hasn’t affected us too badly but we’re still having to deal with delays at the ports and it’s been hectic for my team. The paperwork won’t change so it’s going to be about how companies respond to it.”


PEAK UK’S SOLUTION to its courier problems is to set up a Republic of Ireland subsidiary as a stepping-stone to the customs union and single market. That way, it consolidates orders


once or twice a week and then ship to customers from inside the EU without any added paperwork or costs for the customer. This will require reducing margins and increasing costs slightly, but Pete – who is considering setting up a similar system in North America if this works – just wants a return to frictionless trade. “If we can do that, then we’ll


finally get our business back,” he adds.


Post-Brexit trade deal: Short-term headache or longer-term pain?


Dr Nik Kotecha OBE (pictured), chairman of Loughborough-based exporter Morningside Pharmaceuticals Ltd, examines whether the trade deal challenges are temporary hiccups or a more permanent problem.


When the 11th hour EU trade deal arrived at the back end of 2020, most businesses hailed it as a breakthrough largely because the prospect of no deal would have been so damaging to UK businesses. On the one hand, the deal has given most UK


businesses certainty, enabling them to finally make long-term plans and invest for the future. But despite business’ initial enthusiasm, the devil


was always in the detail. Indeed, some sectors weren’t included in the deal, such as financial services. It’s also clear the new arrangements are not without


their challenges, with every company and sector having to adapt very quickly. Mine is no different, as we import and export our pharmaceutical products globally, as well as to the EU.


‘We’ve taken a number of actions, including working closely with our EU partners and freight forwarding companies to refine shipping and customs processes’


So the question to really ask is whether these are short-term teething problems or a longer-term fundamental challenge? Pre-Brexit, we made extensive preparations for


every eventuality, such as increasing buffer stocks and off-site warehousing, agreeing post-Brexit processes with freight forwarders, and ensuring EU supplier and customer readiness. But, inevitably, there have been some issues since


the new arrangements began, although it’s still too early to say whether these are all down to the new post-Brexit landscape or are being amplified by ongoing Covid-19 restrictions.


BREXIT CHALLENGES FACED TO DATE A few of the challenges we’ve faced so far include additional paper work, which has slowed turnaround time for shipping arrangements; extra shipping costs; customs brokers refusing work because of increased demand; and a shortage of haulage firms and drivers able, or willing, to take UK deliveries. Some of the consequences of the trade deal have


The Chamber’s international trade team can support businesses by answering questions, handling documentation and training. For more information, call on 0333 320 0333 (option 4) or email international@emc- dnl.co.uk.


also affected our supply chain. One example is around specific incoterms, which specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities. This has led to a substantial amount of paperwork


needing to be carried out by our EU suppliers, at a time when their resource time is inhibited by the pandemic. To work through these issues, we’ve taken a


number of actions, including working closely with our EU partners and freight forwarding companies to


Dr Nik Kotecha is a Department for International Trade "export champion"


refine shipping and customs processes, and continuing our export strategy to focus on the rest of the world, as well as the EU. We will also continue to work closely with the Department of Health & Social Care (DHSC), which is keen to support our sector where possible, as well as look to engage Government directly and through trade associations like the Chamber, which I would encourage businesses to provide feedback to.


SHORT OR LONG-TERM PAIN? So to come back to the question, the majority of the current challenges we face should be short to medium-term bumps in the road that get resolved in time as we learn to adapt. A longer-term fundamental concern is the new


trading arrangement with Northern Ireland, which must be resolved quickly. As a business that has exported to more than 120


countries since our inception in the 1990s, I have seen first-hand the opportunities out there and the huge benefits on offer for UK plc. It’s clear the new trade deals negotiated by the Department for International Trade (DIT) will offer UK businesses a real long-term advantage, including the potential for the UK to join trading blocs like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). So despite all the headwinds we face, there are


green shoots ahead and businesses must bear in mind that Brexit is a process, rather than a complete package from day one.


business network March 2021 51


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