More than half of UK exporters believe the post-Brexit Trade and Cooperation Agreement (TCA) with the EU is failing to support sales growth, according to a europe/" data-type="link" data-id="https://eveningstar.uk/category/europe/">British Chambers of Commerce (BCC) survey of nearly 1,000 firms. Dissatisfaction has surged 13 percentage points year-over-year, with just 16% viewing the 2020 deal positively, while government aid rates abysmally low at 0.4%.
The findings, released amid calls for a comprehensive UK-EU “reset,” highlight persistent frictions in customs, regulations, and mobility five years after the TCA’s Christmas Eve signing. Businesses report stalled exports, soaring costs, and lost EU clients, urging swift action on veterinary deals, youth schemes, and VAT simplification.
Survey Reveals Deepening TCA Discontent
The BCC polled almost 1,000 exporting companies, uncovering stark negativity toward the TCA. Only 16% reported the agreement aids expansion into the bloc—Britain’s largest market—while 54% explicitly stated it does not help, marking a sharp 13% rise in pessimism from the prior year.
Government support fared even worse: a mere four out of 946 respondents deemed assistance for navigating trade changes “comprehensive,” equating to less than 0.5% approval. Historical BCC data paints a grim trend—71% saw no growth benefits in 2022, 49% struggled with adaptations in 2021, and 60% faced hurdles post-ratification.
Key barriers identified include customs procedures (45%), export documentation (39%), regulations and standards (35%), and tariffs (33%). Diverging rules, like the EU’s 2026 de minimis removal versus the UK’s 2029 delay, threaten UK competitiveness and invite Chinese parcel floods.
Business Voices: Real-World Trade Struggles
Exporters shared raw frustrations, painting a picture of Brexit’s lingering toll. A Greater Manchester small manufacturer lamented: “Since Brexit our export sales have virtually stopped. The TCA has had no impact in recovering any sales into the EU.”
In the West Midlands, a medium-sized education services provider noted: “Barriers to trade due to limits on freedom of movement… have caused problems for both staffing and recruitment of clients.” A Hampshire small retailer added: “Brexit related constraints have brought significant extra costs in importing goods from the EU,” limiting product ranges as smaller suppliers shun UK admin hassles.
Common themes: bureaucracy overwhelming SMEs, EU buyers deterred by complexity, and competitive edges eroded by paperwork delays and costs. Services exporters face acute pain—15% see TCA upsides for EU sales, 41% disagree, with post-Brexit drops of 16% to key markets.
BCC Demands 25-Point EU Reset Roadmap
The BCC’s 48-page manifesto outlines 25 recommendations spanning short-, medium-, and long-term fixes to ease UK-EU trade frictions. Top priorities include a deep veterinary or sanitary/phytosanitary (SPS) agreement on animal and plant products, a youth mobility scheme for under-35s, enhanced VAT cooperation, customs simplification, full UK access to the EU’s SAFE defence finance initiative, and securing data adequacy renewal benefits.
Further calls target SME food export easements, balanced youth programs for exchanges and work, and tackling the EU Carbon Border Adjustment Mechanism plus General Product Safety Regulation (GPSR), which mandates EU representatives and has driven some firms from the market. BCC Trade Policy Head William Bain stressed customs streamlining to slash red tape.
Leadership Calls for Strategic Overhaul
Steve Lynch MBE, BCC Director of International Trade, framed the crisis urgently: “With a Budget that failed to deliver meaningful growth or trade support, getting the EU reset right is now a strategic necessity, not a political choice.” He added, “Trade is the fastest route to growth, yet firms tell us it is becoming harder, not easier, to sell into our largest market.”
Lynch praised minor wins like Erasmus+ rejoining but demanded “clarity, certainty and delivery at pace in 2026,” envisioning a “mature, stable relationship” over endless crises. He pushed deals on food checks, emissions trading, electricity, defence cooperation, and youth mobility, plus deeper regulatory dialogue to avert shocks: “Without that strategic horizon, trade issues will keep piling up… but with it, businesses on both sides can plan, invest and drive growth.”
TCA’s Mixed Legacy: Tariff-Free but Friction-Heavy
Signed on Christmas Eve 2020, the TCA delivers tariff-free goods trade but skimps on services via mobility curbs and regulatory drift. Brussels’ post-deal rules exacerbate divides, from GPSR to carbon measures, fueling exporter headaches.
Awareness of changes has improved, yet goods, services, and people flows remain bottlenecked. The BCC manifesto, submitted to government, warns of “headaches” from divergence, positioning trade reset as vital for Global Britain’s revival.business-news/archive/article/2025/January/government-must-reset-eu-trade-relations-urges-bcc">
Economic Stakes and Path Forward
EU trade underpins UK prosperity, yet frictions risk stagnation. SMEs, hit hardest by admin burdens, echo calls for pragmatic fixes to restore flows. With 54% negativity at a peak, 2026 emerges as pivotal—will London deliver Lynch’s vision or let barriers mount?
The BCC urges horizon-setting beyond tweaks, fostering investment-security ties. Success could unlock growth; inaction invites divergence’s toll, as exporters pivot or shrink. As one firm put it, TCA offers no salve for Brexit wounds—only bolder resets might
