Trade between Great Britain and the EU continues to collapse as a result of Brexit. This is shown by a new study. The researchers believe that politicians urgently need to take action.
According to a recent study, British foreign trade with the EU is suffering more and more from Brexit. Imports and exports have plummeted, it says in the report by Aston University in Birmingham. Between 2021 and 2023 – the years immediately following Britain’s exit from the EU customs union and the single market – the value of British exports of goods to the EU fell by 27 percent and the value of imports by 32 percent.
1,645 fewer types of British products exported
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).
In addition, the diversity of British export goods has declined, the researchers report. However, the study does not take into account the services sector, which has developed better than expected since Brexit. Exports of tobacco, rail and aircraft goods have also increased.
Bureaucratic hurdles and other Trade barriers
Great Britain left the EU at the end of January 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.
“The negative impact of the trade agreement has increased over time, with 2023 showing a sharper decline in trade than previous years,” it said. Smaller British exporters in particular have given up trading with the EU. The study authors stressed that political intervention is necessary.
This includes mitigating the negative consequences of the trade agreement, redesigning supply chains and helping companies adapt to trade barriers. The new Labour government in London wants to improve relations with the EU. However, Prime Minister Keir Starmer strictly rejects rejoining the customs union or the single market.