The Government’s export insurance scheme has been extended to major markets, including the USA and the European Union, it has been revealed.
The Export Insurance Policy (EXIP) enables businesses to trade with confidence by covering transactions with high-risk markets.
However, changes in European Commission rules to the provision of short-term export credit insurance means that the department can now assure trade with the EU, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland and the USA “with immediate effect”.
According to the latest statistics, exports from the UK to these markets totalled £499 billion in 2018/19 – accounting for three out of four (74 per cent) international sales.
Under the EXIP scheme, UK Export Finance will support companies by offering insurance of up to 95 per cent of the value of an export contract, protecting the UK supplier against the risk of non-payment.
Commenting on the changes, Minister for Exports, Graham Stuart MP said: “Exports play a crucial role in our economy and it’s right that UK businesses trading internationally are protected during this challenging time.
“That’s why we are offering a guarantee to these businesses that they will get paid, so they can continue to export with confidence and support the UK economy.”
The latest statistics show that some 230,000 businesses exported goods and services from the UK last year. Around 95 per cent of these were small and medium-sized enterprises.
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