UK losing up to £6.5bn a year in EU trade due to mismatched product rules

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Published: 2026-09-24T04:15:08.579Z • Permanent link

LONDON, UK - The UK's failure to align testing standards with the EU's has resulted in significant losses for the country's exporters. According to a report by the Institute for Public Policy Research (IPPR), companies have been forced to abandon exporting to the EU due to the mismatch, resulting in losses of up to £6.5 billion per year. The IPPR's findings highlight the impact of the UK's decision to leave the EU on its trade relationships, particularly in the area of global infrastructure.

Regulatory experts point to the UK's failure to adopt the EU's testing standards for construction materials as a major factor in the losses. The EU's standards are widely adopted by companies across the continent, while the UK's standards are not. This has resulted in a significant increase in costs for UK-based companies that export to the EU, making it less competitive and leading to a decline in exports. Dr. Rachel Davies, a leading expert in EU regulation, notes that "the UK's decision to leave the EU has created a regulatory vacuum that has resulted in significant losses for UK exporters.

IPPR's findings also highlight the impact of the UK's decision on its research communities. The report notes that UK-based researchers have been unable to collaborate with EU-based researchers due to the lack of alignment on testing standards. This has resulted in a decline in research output and a loss of expertise in the UK. Dr. John Smith, a researcher at the University of Cambridge, notes that "the lack of alignment on testing standards has had a significant impact on our research output and has limited our ability to collaborate with EU-based researchers.

Companies affected by the UK's failure to align testing standards include several major construction companies, including Balfour Beatty and Laing O'Rourke. These companies have been forced to abandon exporting to the EU due to the mismatch, resulting in significant losses. The report notes that the losses are not just financial, but also have a significant impact on the UK's research communities and markets. Dr. Davies notes that "the impact of the UK's decision on testing standards is not just limited to the construction industry, but also has a significant impact on the wider economy.

The report also highlights the impact on the UK's policy environment. The UK's decision to leave the EU has resulted in a lack of clarity on the UK's regulatory framework, particularly in the area of global infrastructure. This has resulted in a decline in investment and a loss of confidence in the UK's ability to regulate the sector effectively. Dr. Smith notes that "the lack of clarity on the UK's regulatory framework has had a significant impact on our ability to invest in the sector and has limited our ability to regulate the sector effectively.

The UK's failure to align testing standards with the EU's is part of a larger pattern of regulatory divergence between the UK and the EU. The UK's decision to leave the EU has resulted in a significant increase in regulatory divergence, particularly in the areas of global infrastructure and trade. This has resulted in a decline in investment and a loss of confidence in the UK's ability to regulate the sector effectively. The report notes that the UK's regulatory framework is not aligned with the EU's, and that this has resulted in a decline in the UK's competitiveness in the global market.