Chris Southworth, secretary general at the International Chamber of Commerce, United Kingdom, considers how British business can best yield its not inconsiderable influence

The UK is a global market shaper that holds enormous international influence. It is also one of the world's top business locations, with an open and conducive environment for corporates of all shapes and sizes - here to grow and prosper in an environment that supports enterprise.

At least, that was the case on June 23 this year. By June 24 - the day after the EU referendum's "shock" leave result - such a sunny outlook had become somewhat clouded. Of course, in the short-term little has changed. The immediate market shocks have mostly dissipated, with the Bank of England helpfully stepping in to "steady the ship". But it's the long-term prospects that are now worrying UK Plc. And it is here where British business needs to find its voice.

Make no mistake, we have the fight of our lives to ensure we get the best deal from Brexit. In what will be a highly politicised negotiation, the international business community - more than ever - needs to put forward its collective interests and bring a strong dose of pragmatism and calm to proceedings. It's an important moment for businesses to show leadership - whatever happens next is likely to shape the trajectory for the UK and its trading partners for a generation or more.

The UK is, instinctively, an outward looking country. We have free trade in our DNA - reaching back hundreds of years. Yet, for once, the UK's trading instincts will require us to turn inwards and bring others along to ensure that this outward-looking mindset is not harmed by the negotiations to come. It is critical to jobs, trade and investment that the government creates a post-Brexit business environment as conducive as the one prior to the Referendum, if not more so. Currently, there is a huge gap between the political rhetoric versus what is realistic and needed.

Turning inwards

We need to tackle the global investment deficit and help create jobs - something that implementing the £50 billion pipeline of infrastructure work will help us achieve, especially in the regions outside of London. Some radical solutions to the UK skills deficit would also be helpful to better connect people into the global economy. We also must ensure that the 5,500 UK firms that rely on corporate "passports" to conduct business across the EU are able to operate. It is something that matters to all of us if we want our business community to be able to access financing.

Furthermore, we need to encourage foreign investment from multi-nationals. Some 80% of global trade is undertaken by multi-nationals. It is the decisions being made in the boardrooms of the FTSE 250 and their foreign counterparts that should be our chief concern over the next 6-12 months. These decisions will set the trajectory for the next 3-5 years - dictating where investments will be made and where jobs will be created throughout the UK and its overseas supply chains. In reality, there are only a small number of large corporate making the big investments, and driving the UK economy. Of the 220,000 trading companies in the UK, the majority are SMEs. And of the 16,000 mid-size businesses that really drive UK jobs and growth, 30% are foreign-owned. We cannot sacrifice foreign counterparties.

Of course, the shot across the bows from the Japanese government at G20 and, more recently, the warning by Nissan should therefore make us all sit upright - not least because the Japanese investment is significant, and located in some of the UK's poorest communities, where we need to maintain jobs and livelihoods. 

International companies need a voice

Which brings us to free trade. British business needs to fight for what has always made Britain successful - open relationships that promote trade and investment and a willingness to lead from the front as a champion of free trade. Other nations look to the UK for both. 

According to a recent study by Pew Research Center, 88% of UK citizens agree that international trade is good for the UK. Of these, 45% believe trade is "very good" which compares well against the US (18%), France (25%) and Germany (39%). Indeed, export of goods and services accounts for 27% of the UK GDP, compared to 13% in the US (according to the World Bank).  

Overall, this is positive, and shows that support for free trade is strong in the UK. But here is the rub: the fact that the threat of globalisation factored high on the decision to leave the EU, means there is a mismatch between perceiving ourselves to be a champion of free trade, and the reality of having to actually compete in a global economy - particularly when foreign workers are better skilled or more willing to do what we don't want to do. International business leaders know this and must be vocal if we want policies that address this disconnect.

The idea that the UK enhances its trading relationships with non-EU countries is welcome but we need to be fiercely practical and realistic. Other countries will want to cement their own relationships with the EU and for the UK to do the same, before any serious trade negotiations begin. A deal with Australia [2% UK trade] is not a replacement for UK trade with the EU [50%].  The priority needs to be on getting our relationship with the EU right before we focus on new non-EU relationships - particularly as it is further down the line. It will fall to business leaders to add reality to discussions when the political establishment may prefer to focus on the "what ifs" and "maybes".

Similarly, the idea that the UK replaces the free movement of goods, services, people and capital in the single market with an alternative menu of bi-lateral trade deals will only make the business environment tougher with more red tape and cost to business - especially for SMEs and supply chains. A single market and bi-lateral trade deal are two entirely different animals, and comparing them is like comparing apples and oranges. Business leaders must press for a more honest, open dialogue on what solutions are needed to ensure international businesses don't lose out.

There is nothing that suffocates growth more, particularly of SMEs, than a thicket of red tape that varies across every country. While it may work for other countries such as Switzerland, a proliferation of bi-lateral deals on the scale the UK will need is unlikely to be a sustainable solution. More red tape translates into more cost to businesses and consumers, and threatens, rather than creates, jobs. It would also reverse the good work of three consecutive governments. We need a hard dose of business reality.

Wielding influence

This is where organisations such as the International Chamber of Commerce (ICC) can play a major role. By being the international voice of British business we can help shape the crucial debate ahead - ensuring that governments make the right decisions to support growth and jobs and help businesses understand how to navigate the WTO and other international institutions. 

Moving forward, we must present a positive collective voice - one that understands the importance of trade for jobs and prosperity. For 100 years, this is exactly the role ICC has played, not just in the UK but worldwide. Whatever the outcome of negotiations, ICC is here to represent British business internationally. Now is the time for those busineess to come together to help shape the future. The stakes have never been higher.