EU Manchester Relationships 

Greater Manchester has long had a strong export relationship with the EU, although it did feel the impact of Brexit.  

This diversification may be partly driven by the challenges businesses have faced trading with the EU post-Brexit. As we await further details of the new UK-EU Trade Agreement, GM’s export performance suggests resilience and adaptability. 

The EU remains a crucial trading partner, and the evolving framework presents real potential for future export growth.  

Greater Manchester business support organisations such as us, the Chamber of Commerce and Greater Manchester Combined Authority have made it a priority to strengthen relationships with EU partners over recent years. This includes trade missions to the Ruhr Region in Germany in May where we are taking 5 businesses to attend the Ruhr Rummit, along with a small delegation is planned for Chemnitz, Germany in June and  WebSummit in Lisbon.  

The EU as an export destination 

The EU is an important trade partner for the UK: in 2024, UK exports of goods and services to the EU were £358 billion (41% of all UK exports). Imports from the EU were £454 billion (51% of the UK total). [Source UK Gov] 

Goods exports to the EU remain below their pre-pandemic/Brexit level, however services exports are 19% above their 2019 level in real terms. Greater Manchester has a strong services sector, so this is an area with a lot of opportunity for businesses.  

Growth sectors identified include   

Countries across the EU have similar market dynamics to the UK, and pre-Brexit trade and contacts were strong. This now represents an opportunity to re-establish those connections. As a reminder here is a quick overview of Greater Manchester’s key exporting sectors worldwide.

Services exports -    

Whilst business may have been lost by British companies since Brexit, a re-setting of trade regulations is a welcome step that will make trade easier, particularly for smaller organisations that were disproportionately hit hardest by Brexit as they did not have the resources to cope with the extra admin. The flexibility and creativity within UK SME's was well respected across Europe, most visibly in the food sector. 

Opportunities for Greater Manchester Businesses 

Farming and food exports -  

The UK has secured a deal to reduce checks on food exports to the EU which means checks on animal and plant shipments to and from the EU will be dropped.  

Most of the routine border checks on animal and plant shipments to and from the EU will be dropped. And the new sanitary and phytosanitary (SPS) agreement means the UK can sell raw burgers and sausages back into the EU for the first time since Brexit. This opens up lots of opportunities for Greater Manchester food producers to not only sell in the EU but also gain access to EU products.  

Hospitality, food and drink -  

As mentioned above reduced checks on food exports and imports could open more opportunity and reduced costs for food and drink businesses in Greater Manchester.  

The hospitality, food and drink sector in Greater Manchester is strong but has had a tough few years, and these changes should make it easier for them to diversify their sales.  

The UK and the EU have agreed to co-operate further on a "youth experience scheme" - but this will be subject to lots more negotiation. However, it’s likely to increase the amount of EU citizens coming to live and work in the UK for short periods of time. This could have an important impact on businesses as pre-Brexit, as a large part of the workforce in hospitality was made up of EU residents doing this exact thing.  

Defence and security -  

Although a niche sector, it has been identified as a high growth one by local and national government. As a formal UK-EU defence and security pact has been agreed, the government says the agreement "paves the way" for UK-based arms firms to access the Security Action for Europe (Safe) - a £150bn EU fund providing loans for defence projects. 

Better relationships with the EU also mean that they are more likely to buy goods or services from UK defence and security companies. 

 Carbon and energy -

The UK and EU will link their carbon markets to avoid taxes on carbon-intensive goods like steel and cement travelling between the two.  

The UK is also starring discussions on buying and selling into the EU's shared electricity market but would have to follow EU rules to secure a deal.  

Our partners Green Economy have more information about what this means for businesses. Green Economy | UK and EU to link carbon markets, saving on tax and trade for British business. 

What we don’t know yet 

Like all trade deals, we don’t know the details yet. For example, the “youth experience scheme” will have numbers coming here capped, but we don’t know what that cap will be.  

The UK will also pay money to Brussels to access the EU defence fund and as part of the alignment of its food standards systems, but we don’t know how much.  

Other provisions are also lacking detail, but they agreement is still a huge step forward in increasing trade between the UK and EU.  

How to make the most of the trade deal 

Want to know more about what opportunities might be available for you in the EU? Get in touch with our International Growth team today - International Growth | GM Business Growth Hub