Since we left the EU, the regulatory landscape has posed challenges to traders in both the EU and the UK. Whilst the UK has successfully signed over 70 trade agreements to boost our trade with the world, the EU continues to be our largest trading bloc partner for both goods and services. Total trade with the EU as of 2023 was valued at £823bn, accounting for 41% of the UK’s total exports and 52% of the imports. It is estimated UK companies could be exporting an additional USD$75bn to EU countries in the next few years across a wide range of sectors.
So, whilst the UK has one of the most comprehensive trade agreements with the EU, the way we trade has fundamentally changed since we left the EU Single market and customs union, and even though there are not tariffs on most of the goods we trade with the EU, there are certain conditions that need to be met, which in some cases has created trade barriers for some sectors with complex supply chains.
In contrast to that, recent UNTACT statistics showed how the UK has experienced a boom in the export of services, effectively positioning the UK as the 4th largest exporter in the world. Whilst trade overall saw a sharp decline in 2020 due to the impact of COVID, since then exports of goods have grown a modest 8% compared with 35% registered for exports of services, and since 2020 the value of export of services has exceeded the one for goods. As we continue to navigate this new relationship with the EU, there is no doubt traders will continue to face some challenges. New UK and EU regulations will continue to impact exporters and importers, and it is imperative that businesses are aware and prepare.
Some regulations traders need to be aware of include the Ecodesign for Sustainable Products Regulation (ESPR) which is at the heart of the EU’s approach for promoting more sustainable and circular products. The new regulation will force manufacturers to make sure their products meet one or more of the following criteria: are more energy efficient, last longer, are easy to repair, have parts that can be easily disassembled and put into further use, can be easily recycled, contain more recycled content and have lower carbon and environment footprint over their lifecycle. Additionally, the EU has also launched a new Deforestation Regulation (EUDR), which is due to be in force from the end of 2024 and mandates that products due to the enter the EU market must be ‘deforestation-free’, meaning no net loss of trees should occur during their production. This involves planting at least one new tree for every tree cut down and will initially apply to commodities such as Palm Oil, Cattle, Soy, Coffee, Cocoa, Beef, Rubber, Wood, Derived products (such as beef, furniture or chocolate).
Another regulation is related to batteries, which includes due diligence and traceability requirements for batteries sold in the EU market. Lastly, let’s not forget upcoming changes in EU VAT taking place next year as the EU will be modernising and simplifying its VAT procedures for cross-border transactions and initial changes will take place in 2025.
Contact GMCC Trade Team
Unsure how robust is your customs compliance framework? Get in touch with our team and book a complimentary 121 25 min meeting with one of our International Trade & Customs Advisers here. Or simply email us at international@gmchamber.co.uk or call 0161 39 34314
Check our past Chambers Trade Academy virtual sessions where we have cover new EU regulations such as CBAM and VAT.
Need some training and events? Why not check the wide range of courses and events we have coming up here, although we can also design a bespoke solution to meet your specific needs. Check some of the upcoming ones below!
Kommentare