Brexit is hitting the British economy hard. A study reveals alarming figures – imports and exports are collapsing.
Empty supermarket shelves after Brexit in Great Britain. – keystone
The most important things in brief
- After Brexit, British exports to the EU fell by 27 percent and imports by 32 percent.
- Trade barriers particularly affect the agriculture and clothing industries.
- This is shown by a new study.
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In 2021, Great Britain left the EU customs union and the single market. This has serious consequences for the domestic economy. However, some sectors are significantly more affected than others.
According to a recent study, British foreign trade with the EU is suffering more and more as a result of Brexit. Imports and exports have plummeted. This is what the report from Aston University in Birmingham says.
British exports to EU fall sharply after Brexit
Between 2021 and 2023, the value of British exports of goods to the EU fell by 27 percent and the value of imports by 32 percent. These are the years immediately following Britain’s exit from the EU customs union and the single market.
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In addition, the diversity of British export goods has declined. In every EU country, 1,645 fewer types of British products were exported. This hit smaller EU economies harder than larger ones like Germany.
The study does not take into account the services sector, which has performed better than expected since Brexit. Exports of tobacco, rail and aircraft goods have also increased.
Great Britain struggles with trade barriers
Great Britain left the EU in 2020 and has not been a member of the EU customs union or the single market since 2021. Despite a last-minute free trade agreement, bureaucratic hurdles and other barriers to trade remain.
According to the study, the sectors most affected include agriculture, clothing, and wood and paper production. The largest decline in exports was in edible fruits and nuts, whose value fell by almost three quarters (73.5 percent).
“The negative effects of the trade agreement have increased over time, with 2023 showing a greater decline in trade than previous years,” it says. Smaller British exporters in particular have given up trade with the EU.
Politics must act
The study authors stressed that political interventions are necessary. This includes mitigating the negative effects of the trade agreement, redesigning supply chains and helping companies adapt to trade barriers.
The new social democratic government in London wants to improve relations with the EU. However, Prime Minister Keir Starmer strictly rejects rejoining the customs union or the internal market.
Even offers by the EU for simpler Brexit rules for contacts between young people have so far not been met with enthusiasm.
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