Amid Brexit concerns, Britain’s smallest companies are looking to avoid £10 billion in exports away from the EU. 

A report published by academics at Aston University pointed out that several British companies are seeking to increase sales to South American and east Asian countries, as they fear a collapse in Brexit negotiations. 

The UK and the EU are expected to continue the trade talks this week, but there is not much optimism about a successful outcome. Both sides seem to be focusing on the coronavirus pandemic at the moment, making an agreement more difficult to reach. 

“This evidence suggests that UK exporters are jumping before they’re pushed – finding alternative markets worldwide for their products even before we know the outcome of the current UK-EU trade negotiations and any potential new barriers,” said Jun Du, professor of economics at Aston Business School.

“Of course, we will need to see whether these patterns still hold true in the aftermath of the Covid-19 crisis.”

The research highlighted that as a result of the lack of optimism around the Brexit deal, British firms will have directed over £10 billion in exports to the other markets ever since Brexit was voted for in 2016.

Around 340,000 export transactions by 26,000 UK firms were analysed by the University and showed that 46% of the exports were switched to non-EU markets, whereas small businesses changed 19% of its markets. 

However, the EU remains to be a critical trading partner for the UK, accounting for imports and exports worth around  £650 billion annually.

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