Trading between the UK and the European Union (EU) following the so-called Brexit vote will be more complicated, according to a director of an organisation that checks a very large number of letters of credit (L/Cs) each year.

The UK voted in a 23 June 2016 referendum to leave the EU in a manner yet to be decided in a process commonly dubbed Brexit.

Less competitive

Without access to EU trade agreements UK businesses could become less competitive, says international trade director at Chamber International, Tim Bailey.

The Brexit vote will also mean Chamber International, which delivers services on behalf of the UK's Chambers of Commerce, will also have to revise and change its own operations.

Chamber International checks L/Cs worth hundreds of millions of pounds annually and provides training to more than 500 people every year.

EU trade documents

"The EU plays a significant role in what we do. We issue EU trade documents for exporters, use EU resources to help businesses access new markets, work to EU origin regulations, tariffs and trade agreements," says Bailey.

"The [EU] Single Market removed customs controls and the need for any shipping documents. Even the terms 'import' and 'export' were dropped and replaced with 'acquisition' and 'despatch'' he adds.

No plans

It is currently unclear what the UK's position will be in respect of trade with Europe, though a substantial number of supporters of Brexit do want to retain access to the Single Market.

Lengthy negotiations between the UK and the EU are likely, so a resolution of trade relations - along with all other relations - will most likely be subject to uncertainty for some time yet.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.