UK could miss up to £6.5bn in annual EU exports over product rules
The UK could be losing as much as £6.5bn in annual exports to the European Union because manufacturers face duplicate product testing, the IPPR says. The thinktank estimates that vehicle, electronic and pharmaceutical exports would all be higher under arrangements allowing mutual recognition of testing standards.
The UK is losing potential annual exports to the European Union because companies face mismatched product rules and duplicate testing, according to research by the Institute for Public Policy Research. The thinktank estimates that exports could be worth up to £6.5bn more each year if an agreement with Brussels allowed manufacturers to avoid repeated product testing. It said the loss amounts to 0.18% of national income.
According to the IPPR, some companies have abandoned EU sales, while others have established subsidiaries inside the bloc. It attributed those decisions to additional administrative costs and the failure of successive governments to secure a mutual recognition agreement for testing standards. Motor vehicle and parts exports could have been £2.48bn to £3.42bn higher annually, the research estimated.
Electronic exports could have gained £1.17bn to £1.67bn, while pharmaceutical exports were estimated to have a potential annual uplift of £740m to £820m. The figures are estimates of trade that might have been achieved under different arrangements, not a measure of goods currently being withheld at the border. The supplied material does not include a government response or details of negotiations with Brussels.
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