Brexit’s ‘Long Effect’ Hits UK Export Ambitions as Green Tech Firm Sees Europe Sales Collapse

A Bristol-based technology company has highlighted the long-term challenges facing UK exporters after Brexit, revealing a dramatic decline in its European sales despite operating under a tariff-free trade agreement with the European Union.

The firm, Eskimo, which develops high-fashion, energy-efficient electric radiators based on academic research from Bristol, initially saw strong growth prospects in Europe following the UK’s departure from the EU in 2020. Its products, designed to support Europe’s green energy transition, were expected to benefit from growing demand for sustainable heating solutions across the continent. Early plans included exporting goods via the Channel Tunnel, with production scaled up at its Birmingham facility to meet rising orders.

However, according to company founder Phil Ward, the business has experienced what he describes as the “Long Brexit effect,” where non-tariff barriers have significantly impacted export performance. While 40% of Eskimo’s exports went to the EU in 2020, that figure has dropped sharply to just 5% by 2025.

Ward said that although the post-Brexit trade agreement secured zero tariffs on goods exported to the EU, administrative friction, customs paperwork, and regulatory complexity have created delays and added costs. He argued that the perception of increased hassle and uncertainty has discouraged potential European customers, limiting the company’s ability to expand further into key markets such as Germany.

As a result, Eskimo has largely withdrawn from direct-to-consumer sales within Europe, instead relying on limited distribution through agents in France. A broader expansion strategy across the EU has failed to materialize, despite initial optimism following the trade deal.

The company has also faced unexpected challenges in exporting to other international markets, including Australia and New Zealand, where product safety regulations are closely aligned with European CE marking standards. This has reduced the potential regulatory flexibility that some Brexit supporters had hoped would benefit UK innovation and export competitiveness.

While Brexit was promoted as an opportunity for regulatory independence and streamlined global trade, Eskimo’s experience suggests that alignment with international standards remains essential for market access, limiting the practical benefits of divergence.

Despite these challenges, the company continues to grow domestically and remains committed to developing energy-efficient heating technology. However, its leadership warns that the long-term impact of Brexit on export performance may be more structural than initially expected, particularly for small and mid-sized manufacturers seeking to scale across Europe.

The case of Eskimo reflects a broader debate in the UK business community over the balance between regulatory sovereignty and market access, and whether the promised opportunities of Brexit have translated into tangible export gains for innovative firms.