YORKSHIRE SMEs are ill-prepared for the introduction of a new trade deal between the US and the EU, according to a survey.
The Transatlantic Trade and Investment Partnership (TTIP) is due to be finalised by the end of the year – which means the new rules are likely to come into effect well before the UK concludes negotiations on its withdraw from the EU.
But the latest quarterly Close Brothers Business Barometer has found that the TTIP is not yet on the radar of many firms – with just 39% of SMEs across the country aware of the potential implications of the new agreement.
Of those SMEs that are aware of the ongoing TTIP negotiations, some 38% believe the agreement is likely to have a positive impact on their business against 24% who fear the effects could be negative. A further 38% say they are not yet sure what the agreement will mean for them.
There are fears that negotiations over the fine print of the agreement have been conducted behind closed doors.
While business groups hope the deal will be good news for British companies that export to the US, others fear the benefits will disproportionately favour larger organisations – and also disadvantage UK firms that generally have to cope with more regulation than their US counterparts.
“SMEs are not yet clear about the potential impact of the TTIP,” said David Thomson, chief executive of Close Brothers Invoice Finance. “For one thing, not enough businesses are yet aware that this is a significant issue that really should be on their radars; but even amongst those firms where awareness is good, there are very different views about whether this will be a good deal for SMEs.”
The survey found that among SMEs looking forward to the TTIP, improved export opportunities and lower costs are seen as the biggest potential gains. For those concerned about the deal, the major worry is that larger companies will gain the greatest advantage.
“The latest Close Brothers Business Barometer suggests SMEs need to do some serious thinking over the next few months,” said Mr Thomson. “And while the EU referendum may have been distracting, it would be a mistake to think that the UK’s decision to leave the EU will mean our businesses no longer need to consider the TTIP relevant to them.”
