Nearly two years after the UK’s historic Brexit deal went into effect, British exporters are still grappling with the realities of life outside the EU single market. A recent survey by the British Chambers of Commerce (BCC) paints a troubling picture, with only 15% of companies reporting that the trade and cooperation agreement (TCA) signed in December 2020 has helped them grow EU sales.
In contrast, a hefty 40% said the deal has done nothing to boost trade with the bloc, highlighting the persistent barriers and red tape that have become the new normal. As the UK government touts a “new era” of EU relations, exporters on the ground are clamoring for less talk and more action to address their pain points.
Flexibility and Mobility: The Keys to Unlocking Trade Potential
So what do UK businesses want to see changed? Topping the wish list is greater ease in sending staff to work in the EU, with 46% of BCC members surveyed calling this a priority. Navigating the complex web of visa and work permit rules has been a major headache, hampering companies’ ability to provide services and support to EU clients.
The BCC’s director general, Shevaun Haviland, is urging the government to pursue a reciprocal youth mobility scheme between the UK and EU. This could allow early-career professionals to gain valuable experience abroad while fostering stronger business ties. However, the proposal has met resistance from ministers reluctant to diverge from the Brexit rhetoric of “taking back control” of borders.
Cutting Red Tape: The Devil in the Details
Beyond mobility, exporters are seeking relief from the administrative burdens that have come to define post-Brexit trade. Over a third (36%) want to see VAT requirements streamlined, while a quarter (24%) are pushing for mutual recognition of professional qualifications to reduce barriers to providing services in the EU.
The latter is an area where the UK government hopes to make progress, aiming to negotiate deals that would allow British-qualified professionals like architects, doctors, and accountants to practice across the EU. But with talks still in the early stages and the specter of divergence looming, exporters remain skeptical that meaningful change is on the horizon.
The Ticking Clock of Regulatory Drift
Perhaps most concerning is the risk that trade frictions could worsen over time as EU and UK rules continue to evolve separately. A staggering 77% of BCC members surveyed were unaware of upcoming EU regulations on product safety and security set to take effect in January 2025. This lack of preparedness could lead to further disruption and lost business down the line.
While some studies suggest the TCA’s impact has been less severe than initially feared, shaving £27 billion off trade rather than the £50 billion predicted, that’s cold comfort for exporters on the front lines. As costs mount and global competition intensifies, they argue the government must pull out all the stops to minimize friction and maximize opportunity in the crucial EU market.
Resetting EU Relations: Meeting in the Middle
For its part, the government insists it is committed to a “reset” with European partners, to “strengthen ties, secure a broad-based security pact and tackle barriers to trade.” But this will require a delicate balancing act between businesses’ needs and the political imperative to demonstrate Brexit dividends and defend hard-won sovereignty.
“We have been clear that there will be no return to the customs union, single market or freedom of movement.”
– UK Government Spokesperson
With the next general election looming and the Conservatives keen to cling to their pro-Brexit identity, the push and pull between economic pragmatism and political dogma looks set to define the next chapter of Britain’s European story. For UK exporters caught in the middle, the message is simple: we’ve adapted to the new reality, but to truly thrive, we need a trade policy reset that prioritizes our needs over politics.
As 2025 approaches, bringing a formal review of the TCA, all eyes will be on London and Brussels to see if they can find the common ground needed to unleash the full potential of this vital trading relationship. With economic storm clouds on the horizon, failure is not an option. For “Global Britain” to live up to its name, it must first fix the fractures on its doorstep and build a true partnership – rooted in trust, flexibility, and a shared commitment to prosperity. The clock is ticking.
