NEWS

Government must reset EU trade relations

The need for the UK government to reset trade relations with the EU is increasing, according to a report from the British Chambers of Commerce (BCC).

The BCC report, assessing the fourth year of Brexit, identifies fresh challenges as regulations continue to diverge, creating ‘further headaches’ for traders on both sides of the Channel. 

The Trade and Cooperation Agreement (TCA) was agreed on Christmas Eve in 2020 to allow tariff-free trade with the EU once Brexit took effect.  

But services access is limited by rules on business mobility and only 15% of exporters think the deal is helping them to grow sales with Europe, while 41% disagree, according to a BCC survey.

Shevaun Haviland, Director General of the British Chambers of Commerce, said: ‘The government has talked a lot about a new era of trade relations with the EU. But firms are grappling with increasing costs off the back of the Autumn Budget and this change cannot come soon enough.

‘We need to see a smart and flexible approach to these negotiations. Our businesses are clear on what they want to see, less paperwork and bureaucracy, greater flexibility on business travel and a balanced Youth Mobility Scheme between the UK and EU.

‘There is no time to lose in driving forward the changes we need to see. Firms are suffocating under a blanket of rising costs and improving our trading relationship with the EU could provide the growth needed to transform the dour outlook many are facing.’

09/01/2025