Over 50% of UK exporters say EU trade deal hurts sales growth: Survey

The survey highlighted rising frustration with trade friction and regulatory divergence. Only 16 per cent of exporters said the deal is helping them expand sales in Europe, underlining growing concerns over the effectiveness of the post-Brexit trade framework.

The confidence in government support is also extremely low. Just four out of 946 firms effectively zero per cent felt government support in dealing with trade policy changes is comprehensive. The BCC said delivery on the UK-EU reset must continue at pace, warning that trade frictions appear to be worsening rather than easing.

The TCA, agreed on Christmas Eve 2020 to allow tariff-free trade once Brexit took effect, has seen limited success. Restrictions on business mobility have constrained access, while diverging regulations are making it harder for firms on both sides of the Channel to adapt.

Differences in de minimis exemptions for low-value parcels are creating new risks, with the EU set to remove its exemption in 2026, while the UK will not follow until 2029. The BCC warned this could harm the competitiveness of British exporters and encourage trade diversion from Chinese companies into the UK.

One positive development is improved awareness of regulatory change. Compared with 2024, when more than three quarters of firms were unaware of key legislation, businesses are now better informed. Only 11 per cent said they were unaware of planned changes to steel tariffs, while 36 per cent did not know about forthcoming EU customs and VAT rule changes.

The BCC has submitted its EU reset report to the government, outlining solutions to ease trade barriers and reduce costs. The report also draws on direct testimony from businesses across sectors.

“Since Brexit our export sales have virtually stopped. The TCA has had no impact in recovering any sales into the EU,” said a small manufacturing firm in Greater Manchester.

“The current Brexit related constraints have brought significant extra costs in importing goods from the EU. They have also limited our range—as many smaller EU suppliers do not wish to trade with the UK, due to the admin fees and complications,” noted a small retail firm in Hampshire.

“With a Budget that failed to deliver meaningful growth or trade support, getting the EU reset right is now a strategic necessity, not a political choice. Trade is the fastest route to growth, yet firms tell us it is becoming harder, not easier, to sell into our largest market,” said Steve Lynch MBE, director of International Trade at the BCC. “This year’s reset was presented as a turning point, and wins like rejoining Erasmus+ help, but businesses need much more. They want clarity, certainty and delivery at pace in 2026, and an understanding of the government’s vision that stretches far beyond.”

“Businesses do not want a future with the EU where they constantly have to manage friction and are beset with recurring crises. They want a mature, stable relationship that underpins trade, investment and security,” added Lynch. “That means agreeing deals on food checks, emissions trading and electricity, restarting defence cooperation, and finding a pragmatic path on youth mobility. But it also means committing to a framework that builds deeper cooperation, provides better regulatory dialogue and leads to fewer shocks.”

“Without that strategic horizon, trade issues will keep piling up at the UK’s door, but with it, businesses on both sides of the channel can plan, invest and drive growth,” said Lynch.

The BCC’s EU reset report sets out 25 recommendations to improve UK-EU trade over the short, medium and long term. Its top priorities for discussions in 2026 include negotiating a deep SPS agreement to remove export health certificates, linking UK and EU emissions trading schemes, establishing a youth mobility scheme, securing full UK participation in the EU’s SAFE defence finance initiative, and enhancing VAT cooperation and customs simplification to cut trade costs.

The survey, carried out by the BCC’s Insights Unit, covered 989 businesses, of which 96 per cent were small and medium-sized enterprises.

ALCHEMPro News Desk (SG)