Imports and exports fall: Brexit has a big impact on Britain

In 2021, Britain will leave the EU customs union and the single market. This will have a negative impact on the local economy. However, some sectors are much more likely to be affected than others.

According to a recent study, Britain’s foreign trade with the EU is suffering more and more as a result of Brexit. Imports and exports have fallen, according to a report from Aston University in Birmingham.

Between 2021 and 2023 – the years immediately after Britain leaves the EU customs union and single market – the value of British goods exports to the EU fell by 27 per cent and the value of imports fell by 32 per cent.

In addition, the diversity of British exports has decreased: 1,645 fewer types of British products were exported in each EU country. This hit smaller economies in the EU harder than larger ones like Germany.

The survey 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.

Farmers are especially suffering

Britain left the EU at the end of January 2020 and is no longer a member of the EU’s customs union and single market from 2021. Despite a free trade deal agreed at the moment finally, there are bureaucratic barriers and other trade barriers.

According to the study, the hardest hit industries include agriculture, textiles, and wood and paper manufacturing. The biggest decline was in exports for edible fruit and nuts, the value of which fell by almost three quarters (73.5 per cent).

In 2023, trade fell even more sharply

“The negative effects of the trade deal have increased over time, with 2023 showing a sharper decline in trade than previous years,” he said. Smaller British exporters in particular have seen trade freezes with the EU.

The authors of the study emphasized the need for political interventions. This includes reducing the negative consequences of the trade agreement, redesigning supply chains and supporting companies to adapt to trade barriers.

The new social democratic government in London wants to improve relations with the EU. However, Prime Minister Keir Starmer adamantly refuses to re-enter the customs union or the internal market. Even offers from the EU for simpler Brexit rules among young people’s contacts have yet to be met with any agreement. (sda/awp/dpa)