Exports to the United Kingdom have traditionally been important for sectors such as footwear, with a value of 17,573 million euros in 2021 and ranking as the sixth most exporting sector to the United Kingdom. But with the approval of Brexit and its departure from the European Union, exports to this country suffered.
“Despite the fact that positive export figures were achieved in 2022, the trend has clearly been downward. Now the pace of exports to the United Kingdom has slowed down and growth has slowed, standing at 4 from January to March 9%”, points out Marián Cano, president of the Valencian Association of Footwear Entrepreneurs (Avecal).
With this portrait it is understood that the footwear companies of the Valencian Community are the majority among those that have requested aid from the Ministry of Industry for the ICEX-Brexit program, which closed the aid application period on Tuesday. These are intended to support Spanish exporting companies to offset the expenses arising from positioning, consolidation and implementation that they have had to assume as a result of the withdrawal of the United Kingdom from the European Union.
The deadline closed this Tuesday, June 12, almost thirty companies, 27 in total -representing 12% of all applicants- come from the Valencian Community. There are 10 companies from the province of Alicante, 8 from Castellón and another 9 from Valencia that may receive aid of up to 75% of certain expenses incurred from January 1, 2020 to July 31, 2023 , to face this new situation. The maximum support they will receive will be 200,000 euros.
And although footwear, like cosmetics, textiles or some products from the food industry, have shown a downward trend over the years, the British market continues to be an attractive market for many products from the Valencian industry.
That is why the president of Avecal considers it “fundamental” that companies in the sector have sufficient support from the Administrations to promote sales in this country, since she points out that the United Kingdom is “in the top ten” of Valencian footwear exports. It is one of the main non-EU destinations for its exports, a strategic market for Valencian brands to consolidate their internationalization and reinforce their geographical diversification, argues Cano.
Companies must justify either a reduction in their exports or for having had to face expenses derived directly from the departure of that country from the European Union. And so will five shoe producers, another five flooring and wall coverings, 3 furniture producers, 4 food companies, and other toy, electrical, fashion, construction material, furnishing accessories, chemical, and lumber industries.
Many of them have had to assume the new costs derived from VAT registration; advice on the new labeling, packaging and certification requirements; trademark registration; visas for specialized workers or deeds, administrative permits and licences.
Exports from the Valencian Community to the United Kingdom were, in 2022, 2,675,634 million euros, with an increase of 34.3% compared to the previous year. In fact, with data from the Valencia Chamber, it can be seen that the maximum of Valencian exports to the United Kingdom occurred in 2015, but since then these have experienced a “continued downward path”, although always remaining above 2,500 million euros.
Currently, there are a total of 7,763 Valencian companies currently exporting to the United Kingdom, an increase of 330% compared to 2017. The quantitative leap occurred in 2021, when it became the third country with the largest commercial exchanges and with the highest registration of exporting companies: 9,335 in total.
The evolution of recent years has also had to do with the pandemic, since it accentuated in 2020, the culmination of Brexit, the setback of previous years and placed the volume of exports at 2009 levels. In fact, the conclusions of the Chamber of Commerce are that legal insecurity, uncertainty related to residential tourists, limitations on mobility in the pandemic and length of stay have weighed down British capital investments in Spain and the Valencian Community in recent years.
