EXPORTING MADE EASY
When we think about international trade agreements, the image that often comes to mind is one of government officials in suits, sitting around negotiation tables, hammering out terms and conditions that shape global commerce. But for those of us in the trenches—small and medium-sized businesses trying to sell across borders—the reality is much more personal.
As a UK-based exporter selling into Colombia, I’ve had to learn the practical side of trade agreements the hard way: how they impact pricing, paperwork, market access, and even the way buyers perceive your products. And I can say this with confidence: understanding trade agreements isn’t just for policymakers—it’s an essential skill for entrepreneurs who want to compete internationally.
In this blog, I’ll break down what trade agreements really mean for small exporters, using the UK–Colombia relationship as my lens. Along the way, I’ll highlight practical examples, common challenges, and strategies that can help SMEs not just survive but thrive under these agreements.
The UK–Colombia Trade Landscape
After Brexit, the UK scrambled to secure continuity trade deals with non-EU countries to prevent disruption. One of these was the UK–Andean Countries Trade Agreement, signed with Colombia, Peru, and Ecuador. This deal largely mirrors the EU’s previous agreement with the Andean region but now functions under the UK’s independent trade policy.
For exporters like me, this agreement matters because it:
Eliminates or reduces tariffs on a wide range of goods.
Provides protection for geographical indications (think Scotch whisky, Stilton cheese, or Colombian coffee).
Improves access for services and investment.
Includes commitments on labour rights and environmental protections—increasingly relevant to consumer-facing businesses.
On paper, this is fantastic. Lower tariffs mean UK products are more competitive in Colombia. But as any exporter will tell you, the devil is in the detail.
What Trade Agreements Really Mean for SMEs
1. Tariff Reductions Aren’t Automatic
The UK–Colombia agreement reduces or removes tariffs on many goods—but only if you can prove “rules of origin.” For instance, if I’m exporting British-made artisanal chocolates to Bogotá, I must prove that the cocoa butter is sourced in a way that qualifies under the agreement. If not, my shipment may face full tariffs.
2. Paperwork Still Rules the Day
Even with preferential terms, the paperwork is intense. Certificates of origin, health and safety certifications, and customs declarations all need to be aligned. Missing one form can mean the difference between tariff-free entry and a 20% surcharge.
3. Trade Agreements Don’t Eliminate Non-Tariff Barriers
Colombia still has specific sanitary and phytosanitary (SPS) measures, labelling requirements, and bureaucratic steps. Even with zero tariffs, my British craft gin faced hurdles because labelling rules required changes to bottle information in Spanish.
4. Market Perception Matters
Colombian buyers are often enthusiastic about UK goods, partly because trade agreements send a signal of reliability. But if buyers feel you don’t understand local compliance, trust quickly evaporates.
Practical Examples of How the Agreement Works
Let me give you a few examples from my own business journey:
Case 1: Craft Gin
When exporting British craft gin to Medellín, the tariff benefit under the UK–Colombia agreement made pricing competitive against European rivals. But Colombian excise duties still applied, and labelling had to meet local requirements (including Spanish translation of ingredients). The trade deal opened the door, but compliance kept it open.
Case 2: Cheese
I worked with a British cheese producer looking to enter the Colombian gourmet market. Under the agreement, tariffs were reduced, making Stilton attractive for high-end restaurants. But logistical challenges—like maintaining cold chain during shipping to Cartagena—were outside the scope of the deal. The agreement helped on cost, but the exporter still had to solve operational hurdles.
Case 3: Tech Services
Trade agreements aren’t only about physical goods. Colombia has growing demand for UK expertise in software and financial technology. Under the agreement, market access for services improved, making it easier for UK SMEs to form partnerships. For example, a Newcastle-based fintech company found it smoother to negotiate contracts with Colombian banks thanks to provisions protecting intellectual property and reducing service restrictions.
Common Pitfalls SMEs Face with Trade Agreements
Despite the opportunities, many small businesses don’t fully benefit from trade deals. Why?
Lack of Awareness – Many SMEs don’t even know a relevant trade agreement exists.
Complex Rules of Origin – Proving eligibility can be tricky, especially for products with global supply chains.
Assuming Agreements Cover Everything – Tariff reductions don’t remove local regulations, SPS checks, or cultural differences.
Not Using Government Support – The UK’s Department for Business and Trade (DBT) and Chambers of Commerce provide resources, but many SMEs don’t tap into them.
Overlooking Local Partnerships – Success in Colombia often comes from working with local distributors who understand bureaucracy and consumer preferences.
Strategies for SMEs to Maximise Benefits
Here are my top recommendations for exporters wanting to leverage agreements like the UK–Colombia deal:
1. Understand Rules of Origin
Before shipping anything, confirm your product qualifies. The UK government provides guidance, and chambers of commerce can certify origin documents.
2. Build Local Knowledge
Learn Colombia’s local compliance rules. Labelling, packaging, and health standards can be deal breakers. Local trade associations can help you stay up to date.
3. Partner with Local Distributors
Instead of trying to navigate Colombian bureaucracy alone, find a reliable partner. They know how to handle paperwork, logistics, and cultural nuances.
4. Use Government and Trade Body Resources
The UK Export Academy, British–Colombian Chamber of Commerce, and DBT events are goldmines of information and networking.
5. Factor in Hidden Costs
Even if tariffs are reduced, think about shipping, duties, insurance, and compliance costs. Build these into your pricing to avoid unpleasant surprises.
6. See Trade Agreements as Door Openers
Agreements don’t guarantee success—they create opportunities. What you do with those opportunities depends on your strategy, relationships, and resilience.
Wider Lessons Beyond Colombia
While my focus is Colombia, these lessons apply broadly. Whether you’re exporting to Vietnam, South Africa, or Canada, the principles are the same:
Tariff reductions can boost competitiveness, but only if you meet strict rules of origin.
Non-tariff barriers like health standards, labelling, or logistics still matter just as much.
Trade agreements are tools, not solutions.
Looking Ahead: Opportunities in the UK–Colombia Corridor
Colombia is a dynamic market with a growing middle class and appetite for high-quality imports. From luxury food and drink to tech and education services, UK businesses have room to grow.
Looking forward, I see three promising areas:
Sustainable Goods – Colombians are increasingly conscious of sustainability. UK exporters with strong environmental credentials can stand out.
Education and Skills Training – With provisions on services, there’s room for UK training providers to tap into Colombia’s demand for English-language and technical education.
Digital Trade – As both countries embrace digital transformation, opportunities in e-commerce, fintech, and creative industries will grow.
Conclusion: Trade Agreements as Business Tools
As an SME exporter to Colombia, I’ve learned that trade agreements are not abstract documents—they’re business tools. They can lower costs, improve access, and build confidence with buyers. But they don’t remove the hard work of compliance, relationship-building, and market adaptation.
For small businesses, the message is clear: don’t ignore trade agreements, but don’t rely on them blindly either. Learn their provisions, apply them strategically, and combine them with smart local partnerships.
That’s how SMEs can turn international trade agreements from political headlines into practical pathways for growth.