UK exporters remain positive about opportunities in Europe, while efforts to reduce cross-border friction could make it easier for businesses to turn that confidence into sustainable growth.
A recent survey of UK exporters points to continuing confidence in European markets, despite the customs, regulatory and cost challenges that remain part of trading between the UK and EU.
More than 72% of respondents expected their EU trade to increase over the following 12 months, while almost two-thirds identified new products or services as a source of future growth.
The findings suggest that many businesses continue to see Europe as an important expansion opportunity. They also come at a potentially significant point in the evolution of the UK–EU trading relationship.
The UK and EU have been working on a package intended to strengthen economic cooperation and reduce some of the practical barriers affecting trade. Areas under discussion include a new sanitary and phytosanitary agreement for agri-food products and closer alignment of emissions trading systems.
For exporters, the prospect is not a return to frictionless trade, but potentially a more streamlined environment in which some existing barriers become easier to manage.
Entering a new European market or adding a new product can introduce different commodity classifications, documentation, VAT arrangements, regulatory requirements and importer responsibilities.
For that reason, logistics and customs planning increasingly need to form part of the commercial strategy from the outset.
The UK–EU reset could reduce some trading friction
The direction of UK–EU discussions is particularly relevant to businesses managing regular cross-border movements.
One of the most significant proposals is a new SPS agreement covering plants, animals, food and related products. The aim is to make these movements easier, cheaper and more predictable by reducing some of the certification, inspection and administrative requirements currently affecting agri-food trade.
The UK government currently intends the new arrangements to take effect from mid-2027, although the final timetable depends on negotiations.
The two sides are also working towards linking the UK and EU emissions trading systems. This is intended to create a closer relationship between the two carbon markets and, subject to the eventual agreement, allow goods originating in the UK and EU to benefit from mutual exemptions from their respective Carbon Border Adjustment Mechanisms.
Progress has not been completely straightforward. A planned UK–EU leaders’ summit was postponed in June, although both sides indicated that discussions would continue and trade organisations stressed the importance of maintaining momentum.
For businesses, the key point is that the trading framework is still evolving.
Customs remains central to exporters’ concerns
Potential simplification matters because customs and border administration remain among
the biggest practical challenges identified by exporters.
In the recent survey, 82% said fewer customs formalities and border delays would improve their ability to trade efficiently with the EU, while more than half wanted greater clarity about future UK–EU trading arrangements. Over a third identified simpler VAT and fiscal representation requirements.
Those responses underline an important distinction. The issue for many businesses is not whether European demand exists, but how efficiently they can serve it.
Classification, origin, declarations, documentation and VAT arrangements can affect not only border clearance but also total landed cost and the commercial viability of entering a market.
Even if future UK–EU agreements remove some friction, good customs management will therefore remain fundamental to successful European trade.
Look at the complete European supply chain
For businesses targeting growth, UK–EU trade works best when freight is considered alongside customs, inventory and distribution rather than as an isolated transport purchase.
That means looking beyond the freight rate to total landed cost. Customs administration, VAT, duties where applicable, warehousing, inventory holding and delays all affect the cost of serving a European market.
It can also mean reconsidering where stock is held.
For some businesses, storing inventory within the EU can reduce repeated cross-border movements and shorten delivery times to European customers. For others, the use of UK bonded warehousing and/or direct shipment from the UK remains more efficient.
The appropriate model depends on the product, customers, volumes and service requirements.
UK exporters remain ambitious about Europe even while recognising that trading conditions are more complex than they once were. Future UK–EU agreements may remove some of that friction, but exporters do not need to wait for every element of the relationship to be settled before improving their supply chains.
Better customs planning, flexible transport, accurate landed-cost analysis and appropriate inventory positioning can all make European trade more efficient today.
With colleagues on both sides of the UK–EU border, Global Forwarding can support businesses from customs clearance and international transport through to storage and onward distribution, while providing alternative road, short-sea and multimodal options as requirements evolve.
