10 years after Brexit: A practical reset on UK–EU trade is long overdue

Written by Henrietta Brealey (pictured), CEO of Greater Birmingham Chambers of Commerce

While there are still plenty of opportunities to be found in trading with Europe, we can safely say the post-Brexit voyage has not been plain sailing.

For SMEs in particular, that reality has too often meant trading with our nearest and largest market becoming more difficult, more complex and more expensive.

The data tells a clear story. The Office for Budget Responsibility estimates a 4 per cent hit to UK GDP arising from Brexit. Research from the London School of Economics suggests UK goods exports have fallen by 6.4 per cent. Analysis led by Professor Jun Du at Aston University points not only to reduced export volumes, but also to a striking 33 per cent drop in the variety of goods traded in the 35 months following the end of the transition period.

This is not being felt evenly. Smaller firms and occasional exporters, which are the very businesses we need to internationalise and scale, are the least able to absorb additional costs or navigate new layers of complexity.

When you talk to businesses, three themes come up consistently: cost, complexity and divergence.

Taken together, these factors are making it harder to export and compete.

The picture is also evolving rather than stabilising.

From July 2026, the EU will abolish the de minimis threshold for customs duties. In practice, this means all goods entering the EU from Great Britain, including low-value consignments, will face customs enforcement. A proposed €3 duty per consignment may sound modest, but for firms relying on high-volume, low-margin e-commerce shipments, it represents a meaningful additional cost and disincentive for EU consumers to buy from the UK.

At the same time, businesses are navigating a growing set of evolving requirements. These include climate-related policies such as the Carbon Border Adjustment Mechanism, alongside forthcoming changes to EU VAT rules and wider customs reforms.

There’s no need to reopen old arguments on Brexit. We are where we are. But businesses are clear that what they want is a practical reset focused on reducing friction and restoring competitiveness.

Our own survey of West Midlands firms earlier this year found that 45 per cent believe closer alignment with EU rules would help, or significantly help, their ability to trade and grow.

There is also no escaping the fundamental importance of this relationship. The EU remains the UK’s largest trading partner, accounting for over 40 per cent of our trade.

Here in the West Midlands, the link is even more pronounced. In 2024, £14.4 billion of exports went to the EU, compared with £9.3 billion to the United States, our next largest market.

This relationship matters deeply to the businesses powering both our regional and national economy.

So what would a pragmatic reset look like?

The British Chambers of Commerce has set out a clear and constructive agenda in The EU Reset: A Business Manifesto. This includes a deeper sanitary and phytosanitary agreement to ease agri-food trade, improved mobility arrangements to support services and project delivery, linking emissions trading schemes, and simpler VAT and customs processes.

These are not abstract policy ideas. They are practical steps that would make a tangible difference to businesses on the ground. That is where this conversation needs to be anchored.

At the Greater Birmingham Chambers of Commerce, we work with firms at every stage of their international journey, from first-time exporters through to established global businesses.

We deliver trade services, export support and our Global Chamber network, connecting businesses to insight, opportunities and best practice.

We see first-hand the barriers they face, we help them navigate those challenges and we take their experiences directly into conversations with government.

In a world of increasing global uncertainty, we cannot afford to make trade with our closest neighbours harder than it needs to be.

A reset will not remove every barrier. Done well, however, it can lower costs, reduce friction and unlock opportunity, particularly for the SMEs that form the backbone of our economy.

This is not about looking back. It is about ensuring our businesses, and our region, are equipped to compete and succeed in the years ahead.