Ninety days after Brexit, the Netherlands British Chamber of Commerce (NBCC) conducted a survey among 125 UK and Dutch businesses to assess trade between the two countries. Here are some of the key findings:
- Sixty-three percent of the businesses surveyed said that trade between the two nations has become more complex
- Seventy-one percent stated that this was due to higher costs or lower margins
- Forty percent experienced lower revenues due to Brexit
- Sixty-three percent also experienced bureaucracy issues, which was particularly an issue for British companies as 84 percent mentioned it as a problem
- Fifty-nine percent have suffered delayed shipments, while among Dutch companies, the figure was 67 percent
- More than a third of the service sector noted the negative impact of Brexit on travel between the Netherlands and the UK
However, despite such hardships, some businesses were still optimistic that trade could get better. Of those surveyed:
- Forty-eight percent believed that a digital customs procedure and reducing border formalities will help
- More straightforward customs procedures from the UK could also be beneficial
- Thirty-seven percent of the services industry surveyed said that simplified business travel rules would make crossing borders simpler
- Thirty-four percent want professional qualifications to be recognized between the two nations to ease the burden of Brexit
Many British businesses are thus actively looking at establishing a presence in the European Union (EU) to reduce border friction. Forty-five percent of the companies headquartered in the UK will have a presence in the union due to Brexit. Sixty-one percent of the businesses also hope that the move will reduce bureaucracy, while thirty-three percent want to increase speed to market.
A lot of the trading pains are similar to what the broader market is experiencing. This is because goods between the UK and EU are no longer under the same customs union, which means that trading hurdles like rules of origin, standards, taxes, and red tape have arisen. The extra obstacles have particularly hurt SMEs, which usually don't have the institutional memory or resources to navigate them. As a result, businesses on both sides are eager for politicians to reach an agreement so that trade can adjust to the new normal.
Leverage EXIMA to Achieve Success
EXIMA is dedicated to providing our users with a network for communication, along with the information they need to trade confidently. Join Today and gain full access to all of our offers!