UK loses up to £6.5bn annually in EU exports due to mismatched product standards
Source Summary
The IPPR thinktank estimates the UK loses up to £6.5bn in annual EU exports due to the absence of a mutual recognition agreement on product testing standards. Companies have abandoned EU sales or established subsidiaries within the bloc to avoid duplicate testing costs. Motor vehicle exports account for £2.48bn–£3.42bn of the loss, electronics £1.17bn–£1.67bn, and pharmaceuticals £740m–£820m annually.
Why it matters
The failure to secure mutual recognition of product standards represents a material drag on UK national income, estimated at 0.18% annually, affecting major export sectors and demonstrating the ongoing economic cost of post-Brexit regulatory divergence.
What remains uncertain
The estimates represent a range of potential losses; the actual figure depends on whether a mutual recognition agreement is eventually negotiated.
