Support calls made for business exporters

MORE could be done to help Yorkshire companies who are looking to trade internationally so they don’t miss out on vital opportunities, a leading lawyer has warned.

In the first of a series of articles analysing both the opportunities and challenges facing businesses who want to export and trade internationally, Robin Johnson, of Eversheds, said governmnent bodies could offer more services.

Mr Johnson believes organisations such as UKTI have had a positive role to play in helping businesses attend international trade shows and build up contact bases.

But Mr Johnson argues that once a contract has been signed by a Yorkshire business, there is a lack of assistance in the marketplace and that is consequently having a knock on effect on profit margins, which he said were being “eroded”.

He said: “Exports are absolutely vital to the UK economy. The UK economy is only going to be successful if it is a successful exporting country.

“We have built our economic strength over the last few years on exports. To simply supply to the domestic economy is not realistic for any fast growing business.

“It needs to have an international element but the potential lack of support that is offered by the Government is apparent.

“We have held a number of manufacturing dinners in the last few months and the message that we get, particularly from companies that haven’t got infrastructures in place, is that while the Government is very good at finding trade shows to go to, as soon as an order comes in, they are left high and dry, and this is really where help is needed.”

Mr Johnson who sees sectors such as defence and oil and gas as being particularly strong at present, said financial and professional services organisations were playing a vital role in offering valuable advice around issues including tax and legislation of particular countries.

He cites the example of one company he knows of which attended a trade show organised by UKTI, which helped it to win a contract with a business based in Italy.

However, because the UK company had discussed pricing with a number of competitors while networking at the trade show, it had breached antitrust laws which meant it could have been fined 10% of its turnover.

Additionally, having wooed the Italian company by hosting them in England and taking them out to a football match and for a meal before the contract was signed, Mr Johnson argues these acts could have breached anti-bribery laws.

“People might think this is fanciful but while the facts have been slightly changed this did actually happen,” said Mr Johnson.

“The case about pricing is a real life case and although it didn’t involve a Yorkshire company, the particular company that it did happen to did go to its first ever international trade show and talked about pricing and has now been fined as part of a wider investigation into a particular market by the EU authorities.

“This type of scenario is putting people off,” he added. “Companies are aware they need to it (trade abroad) but they think it’s too much hassle and as a consequence they’re prepared to give valuable margin away to companies that can do it for them, so they’re becoming a sub-contractor rather than contractor.”