A CALL has been made for UK Government export support for small firms because of a new obstacle created by brexit/" target="_self">Brexit.
This week the EU’s new General Product Safety Regulation is due to be imposed which will be a “real barrier” for small firms exporting to EU member states and also moving goods to Northern Ireland.
Small business owners in the UK claim they face “overwhelming” costs to comply with the new EU export rule and protest they’ve been given little help by the UK Government.
From December 13, any business that exports to the European Union – excluding some products like food or medicine – or sells goods to Northern Ireland, will have to comply with tough new safety regulations.
That includes securing a “responsible person” for safety testing, translation of safety guidelines into any EU languages where products are sold, as well as other requirements.
It will also potentially mean hiring lawyers if goods do come into conflict with European regulations. The combined expense of this is likely to be too expensive for some small businesses to shoulder with the result that exports to the EU will be depressed even further, it has been claimed.
The UK Office of Budget Responsibility has reported that the UK’s long-term productivity will reduce by 4% because of Brexit. It forecasts that imports from and exports to the EU will be 15% lower in the long run.
The Federation of Small Businesses (FSB) has now demanded strengthened UK Government export support to help meet the challenge of the new safety rule.
“The EU’s upcoming General Product Safety Regulation will be a real barrier to international trade for some of our small firms looking to export to EU member states but also move goods to Northern Ireland,” said Tina McKenzie, FSB policy chair.
“While the UK Government’s newly published guidance on the new EU rule is helpful, small firms are still faced with the complexity and associated costs around it.
“Governments from both sides should look at removing unnecessary trade barriers, not least those arising from the product safety rules, for small businesses in the UK-EU Trade and Co-operative Agreement review in 2026.
“In the meantime, there is a need to strengthen the UK Government’s export support. Reducing the turnover threshold for one-to-one bespoke support to £400,000 would empower more small firms and start-ups to consider international trade from day one.”
The UK Government said: “We are keen to hear from businesses that have questions and concerns. Please contact OPSS.enquiries@businessandtrade.gov.uk and wftf-sgim@cabinetoffice.gov.uk – including where you may have any concerns about compliance or supplying products to NI.
“If you are not clear on your obligations, you should seek independent legal advice.”
