Most manufacturing companies still favour trading with the EU despite finding it a challenge, new research suggests.

A survey of more than 200 manufacturers found customs paperwork and border delays were said to be the biggest barrier, followed by logistics issues.

Make UK said more than a third of respondents said demonstrating rules of origin of goods was still difficult.

The manufacturers’ group called on the Government to continue working closely with the EU to make exporting easier and improve Britain’s Trade and Co-operation Agreement (TCA).

In spite of any difficulties, three in four companies said they are still exporting to the EU, said the report.

Stephen Phipson, chief executive of Make UK, said: “It is clear that manufacturers across the UK have performed strongly on the international stage in the last year with conditions remaining challenging.

“Since Britain left the EU, companies have had to deal with the new trade arrangements of the TCA merging with global disruption brought about by the Covid pandemic.

“Yet Britain’s manufacturers have powered through to build international trade in new markets while navigating through the minefield of challenges which still remain in trading with our closest partner, the EU.”