Home›Global Markets›Trade & Tariffs›UK could be losing up to £6.5bn a year in EU exports w…

UK could be losing up to £6.5bn a year in EU exports without product deal

An IPPR analysis says divergent UK and EU product testing rules since 2021 have driven some firms to abandon exports or set up subsidiaries in the EU, costing 0.18% of national income.

Reported · Written up by our desk · Trade & Tariffs

The UK could be losing up to £6.5 billion per year in exports to the EU due to the absence of a post-Brexit product deal, according to an IPPR analysis cited by The Guardian Business and The Guardian Economics.

The think tank estimated that manufacturers of motor vehicles and parts have lost as much as £3.4 billion annually since UK product testing rules diverged from EU standards, with exporters either stopping sales to the bloc or creating subsidiaries inside the EU to deal with added compliance steps.

IPPR said the lack of a mutual recognition agreement that would allow authorities to recognize each other's testing results may have cost UK exporters between £3.7 billion and £6.5 billion each year in lost revenue since the UK’s new trading arrangements began in 2021.

The analysis put the overall trade loss at about 0.18% of annual national income, and urged the government to reopen talks with the EU after a proposal for a single market for goods was rejected by EU officials earlier this year.

More like this

Sources