International trade is the ‘engine of economic growth’ and Welsh SMEs need to stretch themselves and consider opportunities overseas.
Businesses which trade internationally tend to be more profitable, more resilient, and they employ more people, said Paul Brooks, Head of UK Nations/Regions and UK Manufacturing Sector Lead at the Chartered Institute of Export and International Trade.
“Growth has to come through international trade,” said Paul. “I would ask SMEs to stretch themselves and think about opportunities not just in Wales, not just in the UK, but internationally. The support network is there to help them, including ourselves.”
The Chartered Institute, an independent organisation with nearly 4,500 members, provides education, training, and technical advice on international trade. The body – which will turn 90 next year – has seen particularly high demand for its services since Brexit, helping businesses adapt to new trading complexities.
Paul highlighted ongoing challenges, including issues related to Brexit, global trading volatility, and potential tariffs under a second term of Donald Trump’s presidency in the USA.
Whilst acknowledging the challenges posed by global factors which also include the Ukraine conflict and tensions with China, Paul emphasised that international trade can offer significant opportunities.
“When we left the European Union, it was the first time in three generations that we’d become an independent trading nation,” he said. “There were massive challenges and over the last few years most, if not all, businesses, have been affected by that exit.
“If we look now at the new presidency in the US many businesses could be thinking, ‘Why should we think about trading internationally?’
“Well, you should think about trading internationally because businesses that do so grow more rapidly. In fact, they grow twice as fast as businesses that don’t trade internationally – that’s what the statistics say.
“To put it simply, businesses which trade internationally are more profitable, they’re more resilient. They have a longer business lifespan. They employ more people and they retain more staff.”
Paul said there were reasons for optimism, citing new free trade agreements with the Gulf Cooperation Council, Switzerland, and India, as well as the UK’s accession to the CPTPP – a trans-Pacific trade partnership spanning 11 countries.
He pointed to research suggesting that 3,500 Welsh SMEs not currently trading internationally on e-commerce platforms could collectively generate £465 million annually if they entered international markets. “That’s just one aspect of international trade,” he said. “You can multiply that out to other aspects of international trade – it gives you an example of the size of the prize.”
Many Welsh SMEs remain cautious about international trade, Paul noted, citing confusion over post-Brexit trading arrangements and a lack of awareness about available support.
The Chartered Institute works with the UK and Welsh Governments, including the Welsh Government’s Trade and Invest team, to offer resources and advice. Paul encouraged SMEs to take advantage of the guidance available, including from Welsh Government, the Department for Business and Trade in Wales, the Chartered Institute of Export and International Trade and others such as Chambers of Commerce.
He said:
“Each business will need to assess its own circumstances, but the support network is in place to help them make informed decisions about trading internationally.”
