A recent analysis by the Institute for Public Policy Research (IPPR) indicates that the UK economy is suffering a significant decline in export potential due to the current regulatory landscape following Brexit. The report estimates that UK exporters could be losing up to £6.5 billion annually because there is no formal agreement with Brussels to eliminate the need for duplicate product testing.

Under the current framework, British manufacturers must comply with both UK and EU standards, creating a 'mismatch' that increases operational costs and administrative complexity. According to the IPPR, these barriers have reached a threshold where many businesses have opted to stop selling goods to the EU entirely. Others have chosen to establish subsidiaries within the trade bloc to bypass the friction caused by the lack of a mutual recognition agreement.

The report frames this as a failure of successive governments to prioritize a deal that would streamline trade. While the government has maintained a focus on regulatory sovereignty, the IPPR findings suggest that this policy choice carries a tangible economic cost for the manufacturing sector. The study serves as a call for policymakers to reconsider the current trade relationship to mitigate these losses, though the government has yet to formally respond to these specific figures regarding the impact of product testing requirements.