UK losing up to £6.5bn a year in EU trade due to mismatched product rules
Summary
The UK loses up to £6.5 billion each year in exports to the EU because it lacks an agreement to avoid duplicate product testing after Brexit. This affects industries like cars, electronics, and medicines, causing extra costs and fewer sales.Key Facts
- UK exports to the EU could be £3.7bn to £6.5bn higher yearly with a mutual recognition deal.
- The loss equals about 0.18% of the UK’s annual income.
- Without this deal, some UK companies stopped selling to or set up inside the EU.
- The biggest losses are in motor vehicles (£2.48bn-£3.42bn), electronics (£1.17bn-£1.67bn), and pharmaceuticals (£740m-£820m).
- The IPPR thinktank recommends the UK reopen talks with the EU to reduce costs and uncertainty.
- A “dynamic alignment” deal would mean the UK keeps product rules similar to the EU to allow easier trade.
- Covid, global supply changes, sanctions on Russia, and energy issues do not fully explain the export drop.
- Political parties like the Liberal Democrats want to rejoin the EU single market to improve trade.
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