MSPs push for further UK-EU trade talks amid business concerns

The findings are part of a report examining how trade between the UK and the EU works under the TCA, highlighting the negative impacts of non-trade barriers created by the agreement, which came into force in 2021.

Among the main obstacles identified by the committee were the customs formalities and regulatory checks required for all exports from the UK to the EU.

Members noted the need to negotiate closer legal alignment with the EU, including a veterinary agreement to reduce border controls and administrative burdens for exporting agri-food products.

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The Committee is convinced that this could significantly reduce barriers to trade for many Scottish companies.

Other recommendations included an agreement with the EU on mutual recognition of conformity assessments and the linking of the respective emissions trading systems of the UK and the EU.

The Committee also believes that the UK and Scottish governments need to provide better support to businesses in navigating the complexity of the current trading environment.

Committee Chair Clare Adamson said: “It is clear to us that the post-Brexit trading relationship between the UK and the EU under the TCA will pose significant challenges for Scottish businesses exporting to the EU.

“These trade barriers with the EU are a consequence of the decision to leave the EU, but also of the post-Brexit trade agreement with the EU.

“While the EU may not be prepared to renegotiate the agreement in its entirety, there are still significant opportunities to improve trade relations, including through our key recommendations, such as the need for a veterinary agreement with the EU.

“We have received overwhelming evidence that the non-tariff barriers resulting from the TCA have placed significant administrative, resource and cost pressures on Scottish businesses, causing many to withdraw from the EU market.

“These challenges were particularly acute for exporters of agricultural and food products, who have to comply with EU sanitary and phytosanitary measures, and for SMEs, which were less able to cope with the additional costs and regulatory burdens.

“It is therefore clear that the UK Government needs to negotiate improvements to the trading relationship to better facilitate trade between the UK and the EU, including through the formal review of the TCA in 2026.”

A British government spokesman said: “We will work to reset relationships with our European friends to strengthen ties, achieve a broad security pact and reduce barriers to trade.”