The number of UK businesses exporting solely to the EU dropped by 19% in 2024 to 14,300 from 17,800 in 2023, according to Lubbock Fine, a London-based chartered accountancy firm.
Meanwhile, businesses importing and exporting exclusively to non-EU countries rose by 12% to 132,000.
This shift highlights the impact of post-Brexit regulatory changes and recent trade agreements.
Alex Altmann, partner at Lubbock Fine and head of the firm’s German desk, noted that the decline in EU-focused exporters underscores the significance of the EU/UK trade agreement signed on 19 May 2025.
The agreement aims to reduce veterinary checks on plants and animals transported from the UK to the EU, potentially easing some trade barriers.
The trend of UK businesses moving away from EU trade is attributed to fears of red tape and regulatory divergence since Brexit.
Altmann, also the vice president of the British Chamber of Commerce in Germany, said: “The paperwork involved in trading with the EU has pushed many UK businesses away from their largest export market. Let’s hope that the May 19 agreement is a first step in reducing red tape. The problems caused to UK businesses by Trump’s tariffs shows that the EU will remain a key market.”
The regulatory divergence is exemplified by the introduction of the UKCA safety mark, replacing the EU’s CE mark.
The change, along with increased customs inspections, has added to the challenges faced by UK exporters.
Altmann said: “More regulation means more paperwork – which is time consuming and expensive for businesses. On top of that, slow movement at the border causes delays for customers.
“UK exporters often find client relationships have been damaged to the point where their customers find alternative suppliers within the EU.”
The recent UK-EU trade deal, while a positive step, leaves several issues unresolved.
Altmann pointed out its narrow focus, which primarily addresses fishing and food exporters, leaving out significant sectors like manufacturing and professional services.
“These sectors account for a large portion of UK exports so they should really be a priority for the Government. What is also needed is a long-term commitment by both parties to streamline regulation. This will reduce business uncertainty and increase investor confidence – both of which will contribute to sustainable growth,” he explained.
“UK companies shift focus from EU exports amid trade challenges” was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
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