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New World Trade Organisation (WTO) rules are set to cut the cost of global trade by billions of pounds every year, it has been announced.

The Department for International Trade (DIT) – who helped broker the agreement – said the deal represents a massive win for service businesses in the UK.

Here’s what you need to know.

What’s changing?

The UK is among 67 WTO members to have agreed to implement the Services Domestic Regulation, a deal that will cut red tape around licensing and qualifications.

The other signatories include the US, China, Russia, Japan, Germany, France and Canada.

According to reports, the agreement could reduce service trade costs by around seven per cent per year – around £113 billion annually.

The regulation will cover approximately 90 per cent of global services trade, meaning Britain – the second-largest services exporter – will be among the primary beneficiaries of the new rules.

The deal comes after Britain formally joined the WTO as an independent member last year, following its departure from the European Union.

Benefits for British businesses

The DIT said the new regime will make it easier for small and medium-sized enterprises (SMEs), as well as larger businesses, to “navigate foreign markets and obtain authorisation to export overseas”.

Examples of just some of the benefits include:

• Faster processing times for licensing applications
• The acceptance of electronic copies of qualifications
• An end to unreasonable and hidden fees.

“Historic deal” delivers trade rules “fit for the 21^st century”

Commenting on the announcement, the Government said the “historic deal” delivers trade rules “fit for the 21^st century”.

“As the world’s second largest services exporter, the UK is particularly aware of how important it is to cut red tape and get trade flowing to build back better from the pandemic,” said Secretary of State for International Trade Anne-Marie Trevelyan.

Miles Celic, Chief Executive Officer at TheCityUK, added: “This agreement will be celebrated by the UK’s financial and related professional services industry. It is an essential step towards removing the types of trade barriers most often experienced by services exporters.

“This necessary and innovative agreement will reduce costs for UK businesses, support women’s economic empowerment, and is a significant win for the WTO and wider multilateral economic cooperation.”

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The new regulations are set to come into force from 2023.

For help and advice with related matters, please get in touch with our team today.

The Government’s new digital export strategy could boost international trade by billions of pounds every year, it has been suggested.

The report – published by the Board of Trade – outlines new measures and support that will help traders in the wake of Brexit.

Here’s everything you need to know.

How big is the UK’s digital trade sector?

According to the latest statistics, the UK exported over £200 billion worth of digitally delivered services in 2019. This includes everything from purchasing items online to streaming music.

While the 2020 figures have yet to be released, experts believe that the digital economy has exploded throughout the Coronavirus pandemic.

But the Government believes more can be done to help UK businesses capitalise on the “huge opportunities” digital trade presents.

How will the Government support digital businesses?

The report sets out a number of measures designed to break down barriers and help businesses export digital products and services around the world. This includes:

New trade deals –The Government is negotiating comprehensive digital provisions like those agreed with Japan, Australia, and New Zealand, and digital-focused agreements like the Singapore Digital Economy Agreement.

Export Academy – The Department of Trade’s Export Academy was recently expanded to help even more traders start or grow their international sales. You can find more on the Export Academy here.

Improving market access – The new strategy will focus on five primary goals. These are:

– Open digital markets;

– Free and trusted data flows;

– Consumer and business safeguards;

– Digital trading systems; and

– Partnerships to shape global rules, norms, and standards.

Export Support Service – Firms can use the Export Support Service to ask questions about international trading, such as exporting to new markets, what paperwork you will need to sell digital goods overseas, and rules for a specific country.

Sign up to the Trader Support Service – If you export digital goods to Northern Ireland, the Trader Support Service will guide you through any changes due to the implementation of the Northern Ireland Protocol.

Live webinars and videos – HM Revenue & Customs (HMRC) has published a range of helpful videos and webinars to support businesses in the wake of Brexit.

“Digital trade has taken centre stage in the UK Government’s trade strategy after Brexit”

The strategy has been widely welcomed by experts across the industry, such as techUK CEO, Julian David.

“Digital trade has taken centre stage in the UK Government’s trade strategy after Brexit. techUK is a longstanding advocate for, and supporter of, a UK strategy that combines advanced digital trade provisions in bilateral trade agreements with international regulatory cooperation,” he said.

“Today’s Board of Trade report outlines the right priorities for the UK to continue to advance its leadership, both in new bilateral agreements, like the Digital Economy Agreement with Singapore, and in multilateral forums, at the G7 and the WTO. We support the vision outlined in this report that allows the world-leading UK tech sector to scale up and offer their services to customers across the world and we will continue to work closely with the government to deliver on those promises.”

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For help and advice with related matters, please get in touch with our team today.

Find out how your businesses can benefit from this Government-backed funding

Although much of the COVID-19 financial support has been withdrawn, the Government still wants businesses to access funding to aid their recovery.

That is why the Chancellor, Rishi Sunak, has extended the Recovery Loan Scheme until 30 June 2022 – instead of it ending on 31 December this year.

Intended to bridge the gap between the previous Coronavirus loans and regular credit conditions, the Recovery Loan could be worth up to £10 million per business, or up to £30 million across a business group.

However, as part of the extension to this scheme, certain criteria will change from 1 January 2022, including:

• The scheme will only remain open to small and medium-sized enterprises
• The maximum amount of finance available will decrease to £2 million, per business
• The Government guarantee offered to lenders will fall from 80 per cent to 70 per cent.

To apply for the Recovery Loan Scheme, businesses need to check the list of accredited lenders on the British Business Bank’s website here.

Not sure if you are eligible or need help making an application?

Speak to us for assistance

As part of the Brexit withdrawal agreement, full customs controls will come into force on 1 January 2022.

If you move goods between Great Britain (GB) and Northern Ireland or the European Union, here’s how you can prepare.

Visit the Export Support Service

Firms can use the Export Support Service to ask questions about international trading, such as exporting to new markets, what paperwork you will need to sell your goods overseas, and rules for a specific country.

Sign up to the Trader Support Service

If you move goods in or out of Northern Ireland, the Trader Support Service will guide you through any changes due to the implementation of the Northern Ireland Protocol.

Complete the trader checklist

Are you up to date with the latest rules and regulations? Complete the trader checklist to find out what actions you need to take to comply.

Videos

HM Revenue & Customs (HMRC) has published a range of helpful videos and webinars to support businesses in the wake of Brexit.

The full series, such as this video on the Rules of Origin, can be found here.

Sign up to live webinars

For live support and real-time briefings from trading experts, business owners can sign up to HMRC’s live webinars. We recommend registering for the following sessions:

• Steps you need to take before making your supplementary declaration: get advice on how to make a supplementary declaration and how intermediaries can help
• Customs Import Declarations: an overview of the whole declarations process
• What you need to do to keep your goods moving: covering zero-rated VAT, customs declarations, using an intermediary as well as licences, certificates, and authorisations
• Trader responsibilities when using an intermediary: your responsibilities if using an intermediary to complete import or export declarations
• Importing food and drink, and animal products from the EU to Great Britain: DEFRA webinars about upcoming changes and how to register and use the import system IPAFFS (Import of Products, Animals, Food and Feed System).

Get advice today

For help and advice with related matters, please get in touch with our team today.

Charities and social enterprises are being invited to apply for up to £1.5 million in funding through a new coronavirus recovery loan scheme.

The Recovery Loan Fund, launched by the Social Investment Business (SIB) and the Fusion21 Foundation, aims to support the sector in the wake of the pandemic.

According to the report, the initiative will offer repayable and flexible finance under the same terms as the British Business Bank’s Recovery Loan Scheme (RLS) – currently only available to UK businesses.

The cash can be used for a variety of purposes, such as adapting delivery models, diversifying income streams, managing cash flow, or investing in new technology.

Eligible charities and social enterprises can apply for loans worth between £100,000 and £1.5 million, with repayment terms of one to six years.

A capital repayment holiday will also be made available for up to one year. The interest rate is set at 7.9 per cent per year, with an arrangement fee of 2.5 to 3 per cent, depending on the size of the loan.

Commenting on the scheme, Nick Temple, Chief Executive of SIB, said: “Charities and social enterprises continue to need patience, flexibility and responsiveness in the post-Covid recovery.

“This Fund aims to meet those needs, providing the right finance at the right time for those that need it. Our ongoing commitment is to be as responsive and transparent to our customers as possible.”

Dave Neilson, Chief Executive of Fusion21, added: “As champions of social change, we’re proud the Fusion21 Foundation’s investment will be supporting charities and social enterprises across the country who have been hardest hit by COVID-19 – this is an area we have already pledged significant support to as a Foundation.”

The Fund closes to submissions at midnight on Sunday 21st November 2021.

For help and advice with financing and loans, please get in touch with our charity team.

More than half of EU Member States have agreed to offer UK musicians and performers visa and work permit-free travel, it has been confirmed.

The Department for Digital, Culture, Media & Sport (DCMS) said the agreement will give UK artists the confidence to continue performing in Europe.

Here’s everything you need to know.

What is the agreement?

Following the end of the transition period, 20 EU member states have agreed to continue offering UK artists visa and work permit-free travel (usually up to three months).

This will enable musicians, performers, and other creative professionals to tour abroad easily without facing legal barriers.

Who do the rules apply to?

The rules apply to touring performers (such as soloists, groups, orchestras, dancers, actors, comedians, magicians, circus artists and singers) and support staff (such as sound engineers, technicians, directors, choreographers, producers, and agents).

Which countries are offering visa and work permit-free travel?

Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Poland, Romania, Slovakia, Slovenia, and Sweden.

Which countries are not offering visa and work permit-free travel?

Spain, Croatia, Greece, Portugal, Bulgaria, Malta and Cyprus.

The Government said it is “actively engaging” with these countries and calling on them to align their arrangements with the UK’s rules.

Are there any other requirements?

Durations and requirements vary from Member State to Member State. The Government has created a checklist to help touring artists navigate Europe, Switzerland, Norway, Iceland or Liechtenstein.

Get advice today

For help and advice with related matters, please get in touch with our team today.