Export: make it a reality

Alan Bissett, partner in Arthur Cox Belfast, looks at Northern Ireland’s export potential and the complementary and supportive roles of government and private sector advisors.

If you’re just back from a holiday to the United States or Europe then you will undoubtedly be bragging about the value of the pound against the dollar and the euro.

However, spare a thought for Northern Ireland exporters for whom the strong sterling is proving yet another obstacle in getting products to foreign markets.

Those exporting to the Republic of Ireland don’t have too many access worries but the cost of those exports has certainly risen and customers in the Republic may well be shopping around for value within the EU rather than buying from the UK.

In 2012-2013, exports from Northern Ireland to the Republic of Ireland increased by £68 million (5.3 per cent) over the year from just under £1.3 billion to just over £1.3 billion, the second consecutive year of increases and, after adjusting for price variances, this represents an increase of 7 per cent in real terms.

The current high flying pound may well put a dent in that trend but it’s too early to tell for sure. With the Bank of England increasingly hinting at base rate interest rises (albeit very small), the downward trend for exporters may continue for a while as improved interest rates for savers could drive the pound even higher against major world currencies.

The next few months will tell a tale.

In the meantime, the need to move the economy forward through export remains and that is something evident to the Arthur Cox offices in London, Dublin and New York as well as here in Belfast, as increasingly we are seeing clients seeking market entry and product approvals as well as looking to secure intellectual property and develop routes to market across the world.

Protecting the intellectual property of a company’s goods and services has become essential in a globalised marketplace where copying is rife and where not all jurisdictions share a common view of what constitutes IP.

With ‘ideas’ arguably the most valuable aspect of a company’s business, commercialising and protecting those ideas is vital if competitive advantage is to be maintained and exploited in new markets.

Northern Ireland has many successful export businesses and arguably the ability of companies here to send their goods and services overseas has contributed to the tentative recovery currently experienced in the local economy. For these companies, securing export licences, carrying out market research and conducting appropriate due diligence, all takes time. Planning is crucial.

Of course, there is plenty of help around from organisations like Invest NI, the Northern Ireland Chamber of Commerce and UK Trade and Investment services. The website for UKTI has export guides to every part of the world with information on:

• The challenges of doing business in that particular country;

• The benefits and growth potential of the market;

• Trade between the UK and that country;

• Opportunities in different sectors;

• Start-up and market entry considerations;

• Legal considerations;

• Tax and customs considerations;

• Visa requirements; and

• Where other help can be found.

All of these aspects are important and undoubtedly government plays a vital role in helping the export potential of Northern Ireland. Enterprise Europe Network Northern Ireland, hosted by Invest NI, is a comprehensive network that makes trading in Europe a reality for interested local companies.

Allied to strong and supportive professional advice, there can be no real excuse for local companies failing to find their place in the world. However, the hard work begins at home.

Alan Bissett is Head of Arthur Cox’s Corporate/Commercial Team in Belfast.

Arthur Cox, Victoria House, Gloucester Street, Belfast BT1 4LS

Tel: 028 9026 5528

Email: alan.bissett@arthurcox.com

Web: www.arthurcox.com