This article draws on insights from Linda Grant, Managing Director of BIC Innovation, as featured on Business News Wales.
The UK government’s recent announcement of a renewed partnership with the EU has been widely welcomed – especially by Welsh SMEs who trade across borders. With over 60% of Welsh exports heading to the EU, any steps to reduce friction are positive news.
But as always with trade deals, the real test lies in the detail, and in how quickly these changes translate into tangible benefits for businesses on the ground.
So, what should SMEs know – and do next?
1. Smoother Border Crossings for Food and Drink?
New sanitary and phytosanitary (SPS) measures are set to reduce bureaucracy – including fewer routine checks and the removal of costly Export Health Certificates. A welcome move for Welsh producers.
Over 75% of Welsh food and drink exports go to the EU. Categories like meat, cereals, dairy and eggs will benefit most, this could help smaller producers get back into the game.
Next step:
If you paused EU exports, consider a light-touch market revalidation. What’s changed since you stopped? What paperwork might no longer be required? Start reconnecting with EU distributors if you lost contact. Review your export readiness and factor in that rebuilding relationships will take time.
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2. Service SMEs: Get Ready to Reconnect
For many SMEs, services are just as exportable as goods. New provisions around business mobility and qualification recognition should make it easier for service-based SMEs – especially in professional, IT, digital, and creative industries – to work with EU clients again.
What to watch:
Stay updated on how these new rules unfold and review how you market, package, and deliver your services across borders. Polish your credentials – now could be the time to update your case studies and prepare for new EU client conversations.
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3. Defence and Advanced Tech Opportunities
Defence collaboration was a major part of the deal. That could open doors for businesses working in cyber, AI, advanced manufacturing, aerospace and precision engineering – areas where Wales has real strengths.
The EU’s €150 billion SAFE fund aims to boost European defence production. Welsh businesses with the right capabilities may be well placed to support that mission.
What to do now:
If you supply into defence or security markets, directly or indirectly, this is one to watch. Think about partnerships, positioning, and how to align with future procurement needs.
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4. Talent Exchange Could Ease Short-Term Gaps
A proposed UK-EU youth mobility scheme could make it easier for young people to work and train across borders. While still in early stages, it could benefit SMEs with seasonal roles, language needs, or short-term projects.
Why this matters:
If you need short-term language skills, cultural awareness, or seasonal capacity, this could help. It also opens the door for our own young people to gain valuable experience abroad and bring those skills home.
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Our Take
These measures feel like a step in the right direction – particularly for SMEs who lost EU trade due to complexity and compliance costs. But the detail will matter. The timelines, the implementation, and the trust that must be rebuilt with EU partners will determine whether this reset really works for Welsh businesses.
For food and drink businesses especially, it’s a chance to recover lost ground. For service firms, it might ease entry into a market. And for all SMEs, it’s a reminder that international trade isn’t off the table – but it will take time, care, and a good plan.
We’ll be watching closely to see when these changes come into effect, and how they play out in practice. In the meantime, SMEs should get ready to take advantage.
We’ve supported Welsh businesses with trade, innovation and growth for over 20 years.
If you’re ready to revisit your strategy, reconnect with EU markets, or sense-check your export plans, let’s talk.
