The UK’s economic future depends on smoother trade with the EU
16 May 2025, 11:01
The EU-UK summit makes progress in creating frictionless trade so businesses can focus on growth.
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Last year 41% of all UK exports of goods and services went to the European Union. That represents £351 billion. For businesses all around the UK, it’s extremely important that we are able to conduct those imports and exports as easily as possible.
Spending less time and resources on bureaucracy means businesses can focus on what they do best, be it innovating, manufacturing or selling. That’s a key driver of economic growth and that’s why it’s important that the EU-UK summit makes progress in creating frictionless trade.
Trading with the EU is crucial to the economic success of the UK for a variety of reasons. The EU is an enormous market that’s made up of around 450 million people. That represents a huge opportunity for UK businesses. They are geographically close, so shipping costs are manageable compared to exporting further afield. And it allows us to do what we do best. In the UK we have a highly educated workforce and a thriving start-up scene. We can offer high-tech solutions to some of the challenges EU businesses face, and that in turn grows our supplier base here in the UK as well.
At Bosch, we have invested hundreds of millions into the UK this decade alone. The talented workforce and skilled supplier network in the UK make it an attractive location for us and many other multinational businesses. We have research and development here, as well as manufacturing and sales teams. We are a vital technology partner for many of the vehicles that are built in Britain. All of that has resulted in the UK being Bosch’s second largest market in Europe, behind our home country of Germany.
There are many opportunities to deepen the EU-UK partnership and to enhance this success. The possible youth mobility scheme for 18–30-year-olds could create opportunities for young people working across the Bosch business to come to the UK to enhance their skills. Energy cooperation, including on carbon emissions, is another crucial area in which the EU and the UK should work together to decarbonise their energy systems. For example, we could work together to develop the hydrogen economy.
The continued harmonisation of regulations is also critical. It allows companies to develop one product that can be sold in both the EU and the UK, and this is an area that can contribute to reduced costs for businesses and it will also improve consumer choice because more businesses will be able to sell in the two markets.
Most of all, we want to see cordial relationships and long-lasting agreements, which will enable trade to grow in the decades to come.
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Steffen Hoffmann is Managing Director of Bosch UK & Ireland and President, Northern and Eastern Europe Region.
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