Chambers of Commerce are an important weapon in the exporter’s armoury: their umbrella organisation British Chambers of Commerce (BCC) describes itself as the ultimate business network within the UK since accredited chambers exist in every city and region.
On the macro level, because the chambers work directly with government, particularly BERR and its export agency UK Trade and Industry, they have a great deal of clout internationally.
They also maintain valuable relationships with their counterparts abroad. The strategic agreement signed in February between BCC and its China equivalent the China Council for the Promotion of International Trade (CCPIT) for example will provide improved co-operation in a multitude of areas like trade and investment promotion, a greater exchange of information, credit checks, and support for market visits, trade fairs and seminars.
With protectionism creeping back into the debate on international trade and the world gripped by the global downturn business needs all the support it can get.
UK companies have some distinct opportunities to balance against the pain of the global recession says Peter Bishop, head of international trade and deputy chief executive at the London Chamber of Commerce (LCC).
Not least of these is the weakness of the pound. While the euro is comparatively strong, we have an advantage in the EU market, in which we do 65% of our overseas trade.
“That’s why we joined, after all, when there were only 12 members: now there are 27 and it’s the biggest trading bloc in the world with 500 million people.”
At this precise moment, he says, the same applies in all our overseas markets.
“Our advice to our members is: go on doing what you do – just do it better.”
That’s what one member of the LCC has done. United Corporation based in south London supplies plant, machinery and refinery spares to the competitive Arabian Gulf and Middle East oil and gas market.
In recent years German competition started to eat into the business and the Queen’s Award winning company had to become leaner but this year its volume of trade is up 48%: “The Saudi Riyal used to exchange at 7.8 to the pound, now it’s around 5.1: that’s made the difference,” says managing director Karim Fatehi.
“If you are just trading in the UK you may never have heard of something like a ‘documentary control irrevocable letter of credit’, but you’ll hit problems of documentation the day you start to export,” warns Bishop.
“As you develop your international trade activity your Chamber of Commerce can assist you with all the documentation you need to export your goods and services.” Even if you are taking samples to a trade fair, he says, or stage sets for an opera, local customs will treat them as exports unless you can produce an ATA Carnet, or temporary ‘passport’.
The London Chamber is the National Guaranteeing Association for ATA Carnets in the UK and the largest issuer.
Karim Fatehi relies on the LCC to supply and manage export documentation. He says its services have helped the company grow, and it has also given him a platform to lobby Parliament on regulatory issues. “The Chamber is nothing less than the voice of the business community,” he believes.