Small businesses fear Brexit could harm overseas trade

Not having access to the European single market post-Brexit could lead to a decline in overseas trade among the UK’s smaller companies, according to new data.

A survey by the Federation of Small Businesses (FSB) discovered that nearly a third of its members who trade overseas fear exports will plummet as a result of Britain’s decision to leave the European Union.

Of the 1,758 respondents, 32% said they either export or import. The vast majority trade with the single market.

Around 29% of exporters predict a fall in the level of exports due to Brexit. In comparison, 20% expect to see an increase.

With importers, 31% expect overseas trade to drop, compared with 7% who predict an increase.

According to ITV News, FSB national chairman Mike Cherry commented: “Small business exports have been on the rise since the referendum with the lower value of the pound making UK goods and services more competitive.

“As the UK leaves the single market any new agreement must maintain the current ease of trade with the EU and not lead to additional administrative or financial burdens.”

Yesterday (January 24), the Supreme Court ruled that the Government must seek Parliamentary approval before triggering Article 50 and starting the Brexit process.

While the judgement means Prime Minister Theresa May cannot launch formal talks with the EU without backing from MPs and peers, this is expected to be given in time for the Government’s own March 31 deadline.

MPs have now repeated calls for the Government to publish its Brexit plan in a White Paper.

The formal policy document, argue the Conservative and Labour MPs, would allow for a fuller debate on the process of leaving the EU.

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