Small business in particular struggling with new Brexit red tape. Entirely predictable, and a function of a world trade system distorted against smaller traders. Stay with me a short while as Brexit threadmeister and story author @pmdfoster may say... 1/

The nub of the issue is the extra costs for most exports, whether this is paperwork or meeting different regulatory requirements. A fixed cost per exported load inevitably adds a higher percentage cost to small than larger business... and they may lack expertise. 2/
You'll note that in the EU, with virtually no paperwork or differing regulations, the costs of exports are similar for smaller and large companies - though even there there is a big company bias, because who can afford to lobby for friendly regulations? 3/
The same unfortunately typically applies to trade deals. If you are Nissan and threaten to leave the country without the right deal you have more clout than a small cheesemaker. As we see. But is it just the EU that is over-bureaucratic? Sadly not... 4/
One of the best UK business groups on trade policy @BritAmBusiness (and yes you can quote me @EmanueAdam) has a new report out on a UK-US trade deal and SMEs. It shows opportunities. But unfortunately problems unlikely to be solved. 5/ https://t.co/PhOzGv6IZV
The US regulatory system is just as prescriptive and difficult as the EU one, as suggested in this clip from the BAB report. And no trade deal the US has ever done has helped this, because USTR guard the independence of regulators fiercely. Hopes to change this in TTIP failed. 6/
So what of dedicated SME chapters in trade agreements, pioneered by the EU and enthusiastically adopted by the UK (here clipped from foreword to the BAB report by @GregHands)? Well, you'd rather have them than not. But their focus looks rather limited. 7/
I recall discussing limitations of a proposed trade agreement SME chapter with the EU Commission in 2015. That information is nice, but to make a difference you need to tilt the balance towards SMEs, for example implementing a dedicated small business issue resolution service. 8/
Suffice to say we still haven't really seen a good trade agreement SME chapter from EU or UK. Some SMEs trade well, in services with fewer clear barriers, niche high value goods, or as part of multinational supply chains. But too many struggle. 9/
But finishing with Brexit, once again we have to face new long term trading realities, that small business will be particularly disadvantaged by the end of seamless trade. Government could choose to do more to help, but so far SMEs are not their priority. 10 / end

More from David Henig

Going to have to disagree with my learned friend here. If anyone moved on level playing field it was the UK, on the principle of a ratchet, or tariffs for divergence which was still being denied midweek. Changing the way in this might be achieved (many options) is insignificant.


It is the same "I move in principle you move in detail" shift we saw with the Northern Ireland protocol last year, when no PM could accept a border between GB and NI suddenly did, just as recently no PM would accept tariffs for divergence and seems to have done.

So, are we at deal yet? No, and it remains far from certain, but better than the gloom of Saturday. I still think the PM wants his ideal where everyone is happy, still hopes if only he can speak to Macron and Merkel he could get it, still to decide.


And even if there is a deal it is now too late for either business to adjust to it, or the EU to ratify it according to normal procedure. In both cases you'd think we'd need an extension, but there is a big shrug on this whole question. Nobody knows.

And so, yet again on Brexit, we wait. In particular, those who actually do the trade, the businesses we rely on, are forced to wait for a formal outcome while preparing as best they can. Let's see what happens.

More from Brexit

This very short article by Jeremy Cliffe is the best thing I have ever read on Brexit and the EU. It pivots on the contrast between Delors’ and Thatcher’s authentically provincial Christian visions and suggests the battle in Britain between the two is not over.


Thatcher: Protestant believer in the totally free market and absolutely sovereign centralised nation state. Delors: Catholic believer in third way personalism, corporatism and federalism. Individualism versus relational love. Heterodoxy versus Orthodoxy.

The article useful gives the lie to the idea that the Catholic vision of the EU has altogether vanished even though it is weakened. Delors wanted a social dimension to the free market and single currency and yet lexiteers laughably insist the EU is more neoliberal than the U.K.!

Subsidiary federalism is a doctrine of democracy and human fraternity. State sovereignty is a doctrine of naked power. It is a face of Antichrist. Leviathan.

Those combined that democracy can only be inside a single state fail to power just how much of private law and evermore so is necessarily international. Thus if political institutions don’t extend over borders there can be no democracy.
#Brexitadventcalendar

31 liars & hypocrites who facilitated brexit

Some are mad, some are bad

All are millionaires, some are billionaires

They’ll profit from UK companies failing, keep their money abroad to avoid UK tax and travel freely with their EU passports

#RejoinEU


https://t.co/mZRr9u1RPb


https://t.co/BY6hKloR9d


https://t.co/NdC0ltLeSM


https://t.co/BLnRLotso7

You May Also Like