After years of uncertainty surrounding the UK’s trading relationship with the European Union, there are signs that some aspects of UK-EU trade are becoming more positive.
The latest trade figures reported in September show an upswing in UK exports, with the European Union making an important contribution.
The British Chambers of Commerce highlighted the strength of July’s export figures, noting that growth in exports of goods and services was broad-based and particularly strong in trade with the EU.
For businesses already exporting to Europe, this provides an encouraging backdrop.
For businesses considering international expansion, it is also a reminder that Europe remains an important potential market.
However, exporting successfully requires more than identifying customers overseas.
Europe remains an important market
The EU remains geographically close to the UK and represents a huge customer base.
For many UK businesses, European customers are relatively accessible compared with more distant international markets.
The latest figures suggest that demand for UK goods and services remains present.
The challenge is ensuring that businesses can compete effectively while dealing with the administrative requirements associated with international trade.
Services are particularly important
UK businesses should not think of exports solely in terms of physical products.
The UK has a substantial services sector.
Businesses can export:
- Professional services
- Consultancy
- Software
- Creative services
- Financial services
- Education
- Engineering
- Digital services
For service businesses, international expansion can sometimes be achieved without establishing a physical presence overseas.
That can make exporting an attractive growth opportunity.
The practical challenges remain
Brexit did not eliminate UK-EU trade, but it changed the administrative environment.
Businesses exporting goods may need to deal with:
- Customs declarations
- Commodity codes
- Rules of origin
- VAT
- Import requirements
- Product standards
- Labelling
- Documentation
The precise requirements depend on the goods and destination.
Businesses should therefore avoid assuming that exporting to France, Germany or Ireland is administratively identical to selling to a UK customer.
Documentation matters
One of the most important requirements for international trade is accurate documentation.
A business may need to maintain:
- Commercial invoices
- Customs information
- Certificates
- Contracts
- Shipping documentation
- Product information
- VAT records
Poor documentation can lead to delays and additional costs.
This is an area where digital information management can make a practical difference.
A business that can quickly retrieve the correct invoice, certificate or customer document is better placed to deal with customs and customer queries.
Don’t overlook services
Service businesses should also consider the regulatory side of exporting.
A company providing consultancy or professional services to EU customers needs to understand issues such as:
- Where services are supplied
- VAT treatment
- Contract terms
- Data protection
- Professional regulation
- Local requirements
The rules vary according to the nature of the service and the country involved.
Professional advice is therefore particularly important before entering a new market.
Supply chains can create opportunities
International trade is not simply about selling directly to overseas customers.
UK businesses can also become suppliers to organisations exporting into Europe.
This may provide an indirect route into international markets.
For example, a specialist software provider may supply a UK manufacturer that exports to Europe.
A packaging company may supply an exporter.
A professional practice may provide services to a business expanding overseas.
Understanding the wider supply chain can therefore reveal opportunities that are not immediately obvious.
- Is your business ready to export?
Before targeting European customers, businesses should consider: - Can we deliver competitively?
Shipping, insurance and customs costs need to be included. - Can we manage the administration?
Exporting creates additional paperwork and compliance requirements. - Can our systems support international customers?
Customer records, contracts and invoices need to be managed effectively. - Can we manage foreign currency?
Currency movements can affect margins. - Do we understand the destination market?
Customer expectations, regulations and purchasing behaviour vary between countries.
Start small
Businesses considering exports do not necessarily need to make a major commitment immediately.
A pilot approach can be useful.
Identify one market, one customer segment or one product and assess the results.
This allows the business to learn about:
- Demand
- Pricing
- Logistics
- Customer service
- Regulatory requirements
before committing significant resources.
An opportunity worth investigating
The latest export figures provide a useful reminder that UK businesses continue to have opportunities in European markets.
The environment is not without challenges.
Businesses must understand customs, tax and regulatory requirements and ensure they have the systems to manage international trade.
But the potential rewards can be significant.
International customers can diversify revenue, reduce dependence on the domestic market and create opportunities for longer-term growth.
For businesses considering expansion, October could be a good time to review whether exporting should form part of their 2027 strategy.