From today new rules come into effect that will make it almost impossible for many British businesses to export to the EU and to Northern Ireland.

The General Product Safety Regulation  (GPSR) was introduced by the EU to better protect consumers in the bloc following the rapid growth of e-commerce and dropshipping where it has become more common for professional and legitimate looking websites to deliver substandard or even dangerous goods.

Among other things, it means that businesses based outside the EU who want to sell into the bloc first need to have a person based in the single market known as a ‘responsible economic operator’.

While this is unlikely to adversely impact larger corporations, the new rules will make it almost impossible for sole traders in the UK to export to the EU, drastically shrinking the market for their produce. 

For small businesses already under strain from increased paperwork and costs from Brexit, having to fund a member of staff in the EU will be too much for many to make exporting financially viable. With 60% of the UK’s workforce employed by SMEs, it is feared this could cost jobs and economic growth.

A further consequence is that businesses must follow the same rules when exporting to Northern Ireland as, because of the last Government’s Brexit deal, the alternative would be border checks along Northern Ireland’s 500km border with the Republic of Ireland. It means that many small businesses in Britain have now made the decision to stop exporting to part of the UK. 

Tom Brufatto, Director of Policy at Best for Britain said,

“Unfortunately, for the thousands of small British businesses already struggling with the unnecessary costs and admin from Brexit, this will be the tipping point leading some to stop exporting and others to shut up shop completely.

“The last Government’s flawed Brexit deal is reducing choice and increasing costs for consumers while stifling growth and threatening employment, and the longer we remain unaligned with our largest market, the worse it will get.”

In 2023, the UK Trade and Business Commission published 114 recommendations to remove barriers to trade between the UK and the EU including regulatory alignment where beneficial.

To learn more about GPSR read our latest FAQ