Trading in the European Union

Jun 27 2006 By Evening Gazette

The 25 countries of the European Union (EU) make up a huge market of potential customers and suppliers for your business. This market can be easier to access than other overseas markets as many of the trading practices, regulations and standards apply throughout the EU.

Key tasks such as accounting for VAT on exports (sales) and imports (purchases) - have also been simplified to facilitate trade within the EU. If you conform with UK requirements, you will generally meet requirements throughout the EU.

Why trade in the European Union?

* Trading with other European Union (EU) countries offers a number of key benefits to businesses in the UK. The EU's 25 member states include some of the world's wealthiest and most productive countries. The EU is a huge market in which to sell your goods and services - it also gives you access to a huge source of suppliers.

* At the core of the EU is the single market - the programme of freeing up the trade of goods and services and the movement of people between EU countries.

* The aim is that doing business with other EU countries should become increasingly like doing business within your own country.

* The following are some of the measures which EU countries have introduced to make it easier to trade with each other:

- Reduced bureaucracy and paperwork - for instance, trade with the EU can be recorded on your VAT form in the same way as any of your sales and purchases in the UK.

- Harmonised standards - EU-wide technical and safety standards ensure that if you meet UK standards you'll also meet the standards of other EU countries.

- Movement of people - UK citizens have the right to travel, live and work in any EU country. You can also employ EU citizens to work in the UK.

- The euro - it has reduced the currency considerations faced by businesses trading in euros between Eurozone countries.

Find out about other EU markets

You need to consider your particular business needs and see whether trading with other European Union (EU) countries will be of benefit to you. Look at individual EU countries, find out about market conditions and ask yourself whether there might be business you could do there. Would your products or services fill a niche in the market? Would they be competitive? Are there import opportunities - can you find materials or components of higher quality or at lower prices?

Preparing to trade with the EU

* You need to make sure you're fully prepared before beginning to trade with other European Union countries. You're unlikely to have the same background knowledge of markets, cultures and procedures elsewhere in Europe as you do in the UK - but the more groundwork you do, the less likely it is that you'll be surprised by anything.

* If you're importing, you should conduct research to locate suppliers and assess their quality, reliability and capacity to deliver overseas.

* If you're exporting, it's vital to have a well worked-out plan. You need to be sure that you have the necessary resources to move into an overseas market, as well as the logistical support in place to move your goods between countries.

Draw up an export (sales) plan. It should cover:

1. Your target market - is there a demand for your goods at a viable price?

2. Your products or services - do you need to modify them? For example, do you need to adapt them for language differences?

3. Marketing - how will you market your products? Don't assume they'll occupy the same market position as in the UK.

4. Finance - have you got finance in place to cover the costs of starting to export?

5. Distribution - how will you deliver your goods to your overseas customers?

6. Pricing - what prices will you charge and which payment methods will you accept?

7. Contacts - what contacts do you need to make in your new market?

Regardless of your exporting experience, Business Link provides access to a team of UK Trade & Investment Advisers, who can provide expert, impartial and reliable business assistance to enable you to realise your international trade ambitions.

Call Business Link now on 0845 600 9006 or email info@tees.businesslink.co.uk or alternatively visit www.businesslink.gov.uk to see how you can get the most from your business.