The UK Government’s recent announcement to reset trade relations with the EU brings cautious optimism for Welsh small and medium-sized enterprises (SMEs). With the EU still accounting for over 60% of Welsh exports despite a 13.4% decline in 2024 the deal offers hope of easing trade frictions that have burdened businesses since Brexit.
Key improvements include changes to Sanitary and Phytosanitary (SPS) rules and the proposed removal of Export Health Certificates, which are particularly significant for the agri-food sector. With 75% of Welsh food and drink exports headed to EU markets, streamlined procedures could reduce costs, prevent delays, and restore competitiveness especially for meat, dairy, and cereal producers.
However, the absence of a clear timeline for implementation raises questions. Many smaller exporters who exited EU markets due to compliance costs may need time and support to rebuild trade relationships and regain market access.
Service sectors are also expected to benefit from provisions on business mobility and qualification recognition, opening doors for Welsh IT, professional, and creative service providers. Additionally, enhanced cooperation in defence and security could allow Welsh firms to access new funding and contracts through the EU’s €150 billion SAFE programme.
A proposed youth mobility scheme could help address labour and skills gaps, potentially providing SMEs with short-term access to European talent while offering cultural and professional benefits to young people.
While the trade deal signals a step in the right direction and introduces meaningful opportunities for Welsh businesses, its true impact will depend on how the measures are implemented and how quickly exporters can adapt. Ongoing attention to detail, regulatory alignment, and rebuilding of EU trade relationships will be essential for turning policy into prosperity.
