The Bank of England has predicted the UK’s recession may be the longest on record, but it is not expected to be deep and exports will play a critical role in shortening the downturn.
The Secretary of State for International Trade, Kemi Badenoch, said earlier this month that we need to‘get our exports and investments going’, because trade will be key in helping the UK’s economy through the difficult months to come. That is why we will continue to work closely with our exporting customers, to support their competitive and effective outbound flow of goods, and help stimulate our economy to minimise the impact of any recession.
The BoE’s eighth inflation-busting interest rate rise in a row, takes the base rate from 2.25% to 3% and while a rise in interest rates would normally strengthen a currency, markets reacted against Sterling after the announcement, in part due to the fact that both the Fed and ECB are pursuing similar monetary tightening strategies, but also because the market thinks the economic picture is bleaker in the UK.
Lower exchange rates make British-made exports more competitive, as overseas customers require less Sterling to pay their UK suppliers and there are ways that exporters can accelerate their trading, including trade agreements, government support and training.
Since leaving the EU, the UK has signed agreements with 71 countries, including Australia and New Zealand, with many agreements retaining the terms the UK had as a member of the EU, but all removing market access barriers.
Demonstrating the exports opportunities currently available is the food and drink sector, which has exported significant trade to non-EU markets, with United Arab Emirates, Canada, Australia and India seeing the biggest growth.
The Food and Drink Federation (FDF) said that while growth opportunities in Europe should not be overlooked, “it is promising to see exports to EU and non-EU markets top pre-pandemic levels.”
“We are pleased to see the continuing growth in exports of food and drink in 2022. British meat and dairy exports are growing well and chocolate exports remain strong reflecting the continuing demand for quality British confectionery.”
The Department for International Trade is an invaluable source for exporters, offering a range of support and expertise; through Export Champions, International Trade Advisers, the UK Tradeshow Programme and their Export Support Service provide guidance and advice, including access to ministerial visits, trade fairs and overseas missions, all to help you boost exports.
Another extremely useful resource for guidance, insights and support is the Institute of Export & International Trade (IOE&IT). And then of course there is Metro – food, drink and anything that can be consumed, are within our scope that has covered the last five decades. We know how to move product whether ambient, refrigerated or needing specialist services, the product will reach its destination on time with creative solutions. Nothing phases us and we have the experience and experts to deliver. Every time wrapped up with TLC and visibility end to end.
Since our inception in 1981 Metro has crafted multi-modal export supply chains to help UK exporters optimise existing and break into new international markets, for multiple verticals including food, retail, fashion, automotive, chemicals, industrial, and manufacturing.
To review your situation, or for advice on entering new markets, please contact Elliot Carlile to discuss your options and achieve your export and import objectives. We have every continent covered with specialists locally knowing what the requirements are.