A Holyrood committee is calling on the UK Government to seek improvements to the post-Brexit UK-EU trading relationship after hearing businesses are experiencing “significant challenges” exporting goods.

The Scottish Parliament’s Constitution, Europe, External Affairs and Culture Committee found Scottish businesses have endured “considerable administrative, resource and cost pressures” since the UK-EU Trade and Co-operation Agreement (TCA) was struck by the previous UK government.

The findings are part of a report focused on how trade between the UK and EU is working under the TCA and highlighting the negative impact of non-trade barriers which have arisen as a result of the agreement, which came into force in 2021.

Key barriers identified by the committee included the requirements for customs formalities and regulatory checks for all exports from the UK to the EU.

Members found there is a need to negotiate closer regulatory alignment with the EU including a veterinary agreement to reduce border checks and avoid administrative burden on exports of agri-foods.

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The committee believes this could significantly reduce barriers to trade for many Scottish businesses.

Further recommendations included a mutual recognition agreement with the EU on conformity assessments and the linkage of the respective UK and EU emissions trading schemes.

The committee also believes the UK and Scottish Governments need to provide better support to businesses in managing the complexity of the current trading environment.

Committee convener Clare Adamson said: “It’s clear to us that the UK-EU trading relationship under the terms of the TCA has presented significant challenges for Scottish businesses exporting to the EU post-Brexit.

“These barriers to trading with the EU have resulted from the decision to leave the EU, but also from the post-Brexit trade agreement with the EU.

“While the EU may not be willing to substantially renegotiate the agreement, there are nevertheless significant opportunities to improve the trading relationship, including through our important recommendations such as the need for a veterinary agreement with the EU.

“We heard overwhelming evidence that the non-tariff barriers resulting from the TCA have placed considerable administrative, resource and cost pressures on Scottish businesses, with many withdrawing from the EU market as a result.

“These challenges have been particularly acute for exporters of agri-food products, which are required to meet the EU’s sanitary and phytosanitary measures, as well as SMEs, who have been less able to absorb the additional costs and regulatory burdens.

“Therefore, it’s clear that there is a need for the UK Government to negotiate improvements to the trading relationship to better facilitate UK-EU trade, including through the formal review of the TCA in 2026.”

A UK Government spokesperson said: “We will work to reset the relationship with our European friends to strengthen ties, secure a broad-based security pact and tackle barriers to trade.”