We all want to sell more products, we all want to make a profit but how do we do it? How can existing export processes contribute to us being more competitive in overseas markets?
With a combination of documents, free trade agreements and many relief schemes, costs could possibly be reduced. Also, alternative routes to market could be considered, for example how would the potential Trans-Pacific Partnership be of benefit to EU companies?
WHAT - 12 member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the USA. Together, these 12 countries are responsible for 40% of world trade and have a population of about 800 million.
WHY - One purpose of TPP is to reduce tariffs to level the global playing field among these countries. Import tariffs can make products more expensive to customers abroad. In Vietnam for example, there is a 10 to 20% tariff on automotive parts manufactured in the EU. In Malaysia there is a 20 to 40% tariff on poultry from the EU.
In the EU we have preferential trade agreements with Chile and Mexico. These agreements are linked to reducing or completely eliminating import duty. So if you have business into any of the above regions, could you look at selling to a TPP partner via these two countries?
Of course there is the extra cost of shipping and possible restrictions based on country of origin but if you could save up to 40%, then surely this route would be worth researching.
Are you aware of all the trading partners we have and possible alternative routes to market there could be? Just thought.....
Resultz Ltd provides the training to help all sizes of business understand the export documentation requirements and the commercial aspects of developing business overseas.
