May 12, 2017 Industry news
Survey of over 1,000 GS1 UK members highlights clear agenda of action for government during Brexit negotiations
We recently surveyed over 1,000 GS1 UK members, representing a large cross-section of British SME businesses, to understand their views on the potential impact of protectionism and Brexit will have on their businesses. The findings are included in our new report, Defending cross-border trade, which sets out a clear agenda of action for the government during the Brexit negotiations.
Most clearly, just 6% of businesses want the government to prioritise curbing immigration during the Brexit negotiations – while 74% want the government to focus on securing barrier-free trade with the EU.
Theresa May has said that, while Britain will be outside the single market, it may be possible to preserve some of our access to it – even if that means Britain continuing to make financial contributions to the EU. When we asked our members, 49% said they would prefer the UK to continue making financial contributions to the EU to preserve access for trade while just a third (33%) said they would prefer the money was spent on cutting taxes here in the UK.
The report also found 59% of British businesses are worried EU leaders will impose tariffs on UK trade as a penalty for leaving to the EU. The poll suggested British businesses are not reassured by economic arguments suggesting Brexit will work because the EU needs it to – that tariffs cut both ways and that no matter what happens, Germany will still want to sell its cars to Britain, as will France its wine.
GS1 UK also polled business on their preference for a new trade deal: 76% viewed an EU/UK trade deal as more important than a US/UK deal.
Gary Lynch, CEO of GS1 UK says: “In the Brexit negotiations, business is clear. Gaining access to the single market for British exports should take priority over rolling back the free movement of people. And if we have to pay for access to the EU, then so be it. British business tells us loud and clear that a trade deal with the EU is even more important to them than a deal with the US.”
Facing the growing wave of protectionism
Our research found that, in face of a growing wave of protectionism, the vast majority of British businesses (87%) believe the Government needs to do more to explain the benefits of free trade to the public. Business is overwhelmingly against protectionism with only 4% of UK firms supporting policies which restrain trade between countries. A majority of businesses (53%) agreed that trade helps lift people out of poverty – with only 14% saying that it doesn’t.
Gary Lynch says: “For decades there has been a consensus that free trade brings more jobs, higher wages, and lower prices. That’s changing. Donald Trump's inauguration speech proclaimed a new age of American protectionism. He’s not alone. Marine Le Pen regularly attacked trade in the race for the French presidency. But British business bucks that populist trend. British business wants Theresa May to make the case for free trade – and stop protectionism spreading any further. For 40 years, GS1 UK has been to helping businesses trade freely across borders using a global language of business. But as an organisation we can see our mission and purpose being undermined by the resurgence of protectionism.”
An agenda for export
The report also details an agenda for export, based on the views of over 1,000 UK businesses, by laying out an overt course of action for the Government to follow to facilitate cross-border trade. The findings show:
- 66% think the Government should tackle Britain’s transport infrastructure – including airport expansion – “as a matter of urgency”
- 66% want the Government to work towards the elimination of customs duties
- 62% want the Government to lower corporation tax to 12.5% - similar to Ireland
- 59% of British businesses want to see better access to export financing for SMEs
- 58% think the Government should introduce export tax credits
- 55% want the Government to allow the free movement of labour from the EU to continue
- 47% agree that the UK should slash EU red tape – only 25% disagree
- 41% want the UK to go even further and adopt a non-interventionist model similar to that of Hong Kong – just 18% disagree
Gary Lynch says: “We need to stop thinking about what export can do for our government – and start thinking about what our government can do for exports. British exporters are keen to put their faces into the wind of international competition and are confident of success despite the geopolitical challenges of protectionism and Brexit – providing the Government gives them the support they need by working towards the elimination of customs duties, lower corporation tax and improved access to export financing for SMEs. While trade deals will be secured over time. British businesses also tell us that investment in our transport infrastructure must happen now. We need will need to expand Heathrow quickly and step-up high-speed rail to keep up with international competition.”