The U.S. International Trade Commission (USITC) today released a report that catalogs the trade-related barriers perceived to be affecting exports of U.S. small and medium-sized enterprises (SMEs) to the United Kingdom (UK).

The report, U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom, was requested by the U.S. Trade Representative (USTR). 

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, catalogued trade-related barriers that U.S. SMEs perceive as disproportionately affecting their exports to the UK, as compared to larger U.S. exporters to the UK.

The report focuses on barriers identified by SMEs that hinder their ability to export to the UK. The USITC collected primary qualitative information and data to analyze both tariff and nontariff measures that may affect U.S. SME exports to the UK.  The report includes suggestions from SMEs and relevant literature for actions that would help address some of the identified barriers and enhance the participation of U.S. SMEs in U.S.-UK trade.

Main Findings:

• SMEs believe they are particularly affected by a number of specific crosscutting trade-related barriers imposed by a European Union (EU) or UK government law or policy; these include tariffs and taxes, customs procedures, intellectual property measures, and temporary entry provisions.  Further, SMEs noted various market-related barriers that they perceive as affecting their ability to export to the UK market, including logistical and finance-related issues, and difficulties in entering or participating in the UK market.


• Standards, technical regulations, and conformity assessment procedures are most often cited by SMEs as limiting their exports to the UK.  The most frequently cited SME concern is that the UK often does not recognize the standards set by U.S. standards bodies, which forces many U.S. firms to seek dual U.S. and UK certifications before they can export their products.


• SMEs producing manufactured goods reportedly face numerous regulatory measures related to standards and regulations, which include labeling, licensing, and certification.  U.S. agrifood SMEs also identified a variety of nontariff barriers that they face in the UK with respect to labeling requirements, sanitary and phytosanitary (SPS) requirements, geographical indications and wine names, packaging rules, food safety requirements, and certifications.


• There are limited trade-related barriers for U.S. service exports to the UK.  However, the largest hardships U.S. SMEs engaged in the professional services industry say they face are temporary entry provisions, and licensing and credential issues. SMEs that export computer services reportedly encounter issues related to data protection and privacy laws, cybersecurity, and customs requirements.

U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom (Investigation No. 332-569, USITC Publication 4953, September 2019) is available on the USITC's website at https://www.usitc.gov/publications/332/pub4953.pdf.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance.  The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated.  The Commission makes no recommendations on policy or other matters in its general factfinding reports.  Upon completion of each investigation, the USITC submits its findings and analyses to the requester.  General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

The U.S. International Trade Commission (USITC) is seeking input for a new general factfinding investigation on trade-related barriers that small- and medium-sized enterprises (SMEs) perceive as disproportionately affecting U.S. SMEs exporting to the United Kingdom (UK), compared to larger U.S. exporters to the UK.

The investigation, U.S. SME Exports: Trade-Related Barriers Affecting Exports of U.S. Small- and Medium-Sized Enterprises to the United Kingdom, was requested by the U.S. Trade Representative (USTR) in a letter received on August 3, 2018.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will catalog trade-related barriers faced by U.S. SMEs exporting manufactured products, agricultural goods, and services to the UK. The report will:

• focus primarily on barriers identified by U.S. SMEs that have experience in exporting to the UK, either directly or through supply chains;
• identify barriers by economic sector or by special issue to the degree practicable; and
• build on four previous SME studies that were released by the USITC in 2010 and 2014.

The USITC expects to submit its report to the USTR by July 31, 2019.

The USITC is seeking input for its new investigation from all interested parties and requests that the information contain specific trade-related barriers faced by U.S. SMEs exporting to the UK. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on February 26, 2019. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on February 11, 2019, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington D.C. 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical data but no later than 5:15 p.m. on March 15, 2019. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions appears in the USITC's notice of investigation, dated August 30, 2018.  The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting report convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.