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UK could be losing up to £6.5bn a year from EU trade friction

An IPPR estimate says mismatched product testing rules since 2021 may have cut motor vehicle and parts exports by as much as £3.42bn annually.

Reported · Written up by our desk · Trade & Tariffs

The UK may be losing up to £6.5bn per year in exports to the EU because post-Brexit product testing rules have diverged from EU standards, according to the UK thinktank IPPR.

The IPPR said the lack of a mutual recognition agreement has forced some manufacturers to abandon exporting or set up subsidiaries inside the EU, and it estimated losses for UK motor vehicle and parts makers of up to £3.42bn a year.

In its latest calculation, the thinktank estimated that the absence of an EU deal could have cost UK exporters between £3.7bn and £6.5bn annually in lost revenue since the trading arrangements took effect in 2021.

IPPR urged the government to reopen negotiations with Brussels, arguing the trade loss amounts to about 0.18% of annual national income.

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