Companies who have built strong international relationships have found them supportive following the Brexit vote
The future of trade is positive for businesses with strong international relationships despite the Brexit vote, though the longer term outlook is less certain, according to market experts.
Richard Hampton, Organic Milk Suppliers Co-operative (OMSCo) managing director, said the strong partnerships it had built across the world meant their business had, so far, not been affected by the decision to leave the EU trading bloc.
Before the referendum, OMSCo supported remaining in the European Union.
Mr Hampton said: “Our position was based on the idea the risks of Brexit were a risk too far because of the uncertainty for the next two to three years.
“Since the vote to leave, we have found our key markets to be supportive,” he said.
It was a feeling echoed in the machinery sector, where second-hand sales remained buoyant.
Mr Hampton said selling added value products also protected them from the volatility commodity markets may face.
“We remain positive we will continue to see the growth and a slow but steady increase,” he said.
While there was lower demand in the UK market for organic milk, this had been offset by demand around the world.
Most of the co-operative’s exports go to countries outside the EU, such as the US.
But AHDB warned agreements with non-EU countries in the future would be affected by the decision to leave.
According to the levy body’s Horizon Market Intelligence document, the UK may lose access to existing EU free trade agreements in negotiations and it could take up to 10 years to regain access to markets the EU has preferential deals with.
Many trade agreements with non-EU countries reference EU legislation, which may mean they need to be renegotiated or the UK has to adhere to EU law, AHDB analysts said.
However, the UK will be able to be more flexible with its trade agreements and concentrate on areas of domestic priority, meaning future agreements may be faster or simpler to come to.
If Government does decide to impose trade restrictions, retaliation could also limit UK access to export markets, the AHDB report added.