UK-EU trade deal fails to boost exports as business friction worsens

"A survey by the BCC found that 54 per cent of exporters believe the Trade and Co-operation Agreement (TCA) has failed to help them increase sales in the UK's largest overseas market, a rise of 13 percentage points compared with last year. The findings underline growing concern that Brexit-related barriers are becoming more restrictive rather than easing over time. The results come as Prime Minister Keir Starmer pursues a much-trailed "reset" of the UK's trading relationship with Brussels."

"Only 16 per cent of businesses surveyed said the EU deal had helped them grow sales, while almost none felt government support in navigating post-Brexit trade rules had been comprehensive. The BCC polled 989 firms, of which 96 per cent were small and medium-sized enterprises. Businesses cited ongoing customs bureaucracy, VAT complexity and restrictions on staff mobility as key obstacles to selling into the EU."

"The BCC has urged ministers to prioritise practical reforms in 2026, including closer co-operation with the EU on VAT, simplified customs procedures and a deeper SPS agreement to reduce paperwork and delays at borders. It also warned about delays in scrapping the de minimis import exemption, which allows overseas sellers to ship low-value goods into the UK without paying duties. Chancellor Rachel Reeves has signalled the loophole will be closed, but not until 2029."

More than half of British businesses report difficulty expanding sales in Europe despite the UK-EU Trade and Co-operation Agreement. The British Chambers of Commerce survey found 54% of exporters believe the TCA failed to help increase sales, up 13 percentage points year-on-year; only 16% said the deal aided growth. Ninety-six percent of the 989 firms polled were SMEs. Key obstacles include customs bureaucracy, VAT complexity, restrictions on staff mobility and SPS checks affecting food and agricultural exporters. The BCC urged practical reforms for 2026 — closer VAT cooperation, simplified customs, and a deeper SPS agreement — and warned about delayed removal of the de minimis exemption until 2029.

Read at Business Matters