Deloitte: exports to emerging economies set to rocket
30 January 2013
Yorkshire’s exports to rapidly-growing economies such as Brazil are set to continue rising - but ‘new’ exporters should seek the correct advice first, according to international tax experts at Deloitte.
Richard Williams, international tax partner at Deloitte in Leeds, says Yorkshire firms are increasingly taking advantage of the opportunities presented by emerging economies such as Brazil and India.
Figures from the ONS show exports from Yorkshire to Latin America hit a new high in Q3 of 2012, up to £204m from £117m for the previous quarter in 2012.
Williams said this activity will increase as the eyes of the world shift towards Brazil, which hosts the 2014 World Cup and the 2016 Olympic and Paralympic Games.
However, as promising as the emerging economies are, Williams warned that companies should seek proper expert advice before heading off to attempt to trade there.
“Overseas markets will be increasingly important to Yorkshire’s firms’ growth prospects in 2013,” he said.
“Established multi-nationals already have operations in Europe, the US and in recent years have been expanding into India and China. Fierce competition for market share in mature markets means firms are increasingly looking for growth to come from new overseas markets.
“More firms are looking to fledgling acquisitions or joint ventures in countries like Brazil, Chile and Peru, as a first step into new markets, with a view to growing a larger, more profitable presence in these overseas territories.
“But companies that are new to the idea should be appropriately wary. Working in Brazil, especially, the approach is frequently ‘litigate first, ask questions later’ - so any approach to these markets needs to be watertight.
“The opportunities, though, are incredibly promising for those that are well prepared and willing to put in the work.”
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