Scottish businesses face ‘significant challenges’ exporting goods to EU, committee finds

Scottish businesses are experiencing “significant challenges” in exporting goods to the EU under the post-Brexit trade agreement, according to a new report by the Scottish Parliament’s Constitution, Europe, External Affairs and Culture Committee. 

It has found the challenges are being created by “considerable” non-tariff barriers that have arisen due to the post-Brexit UK-EU trading relationship. 

The committee has said improvements must be negotiated by the UK to better facilitate UK-EU trade.  

The report highlights “considerable administrative, resource and cost pressures on businesses” which have been caused by non-tariff barriers, adding it has “harmed exports”.  

It cites the requirements for customs formalities and regulatory checks for all exports from the UK to the EU as a key issue and argues that the UK will need to seek closer regulatory alignment with the EU to address the barriers.  

The report recommends that the UK Government seeks to strike a veterinary agreement which would see a significant reduction in border checks and the administrative burden on exports of agri-foods.  

The committee also suggested the UK and Scottish governments should provide better support to businesses in managing the complexity of the current trading environment.  

Convener of the committee, Clare Adamson, said: “It’s clear to us that the UK-EU trading relationship under the terms of the TCA has presented significant challenges for Scottish businesses exporting to the EU post-Brexit. 

“These barriers to trading with the EU have resulted from the decision to leave the EU, but also from the post-Brexit trade agreement with the EU. 

“While the EU may not be willing to substantially renegotiate the agreement, there are nevertheless significant opportunities to improve the trading relationship, including through our important recommendations such as the need for a veterinary agreement with the EU.” 

She added: “We heard overwhelming evidence that the non-tariff barriers resulting from the TCA have placed considerable administrative, resource and cost pressures on Scottish businesses, with many withdrawing from the EU market as a result. 

“These challenges have been particularly acute for exporters of agri-food products, which are required to meet the EU’s Sanitary and Phytosanitary measures, as well as SMEs, who have been less able to absorb the additional costs and regulatory burdens. 

“Therefore, it’s clear that there is a need for the UK Government to negotiate improvements to the trading relationship to better facilitate UK-EU trade, including through the formal review of the TCA in 2026.”