Brexit’s toll on British trade is deepening, with UK goods exports to the EU falling by 27% between 2021 and 2023, a study by Aston University Business School has found.
Smaller businesses have been particularly affected, with many giving up on exports altogether due to increased red tape and regulatory burdens. The report revealed that goods imports from the EU have also dropped by 32%, highlighting the challenges Brexit has posed to UK-EU trade relations.
The study outlined the decline in the variety of products exported, with 1,645 fewer British goods being sent to EU nations. Small producers, like Mary Quicke of Quicke’s Cheeses in Devon, have voiced their frustration. Quicke explained the difficulties she faced handling paperwork for her EU customers, forcing her to give up direct exports. “We just don’t have the people to do the paperwork,” she said.
According to the report, industries such as agrifood, textiles, and materials manufacturing have been hit hardest, with sectors facing increased regulations such as product standards, safety checks, and labelling requirements.
While these measures are aimed at protecting consumers, they’ve resulted in mounting costs and challenges for businesses trading with EU nations. Trade with more distant EU countries, including Commonwealth allies like Cyprus and Malta, has suffered the most.
However, the report did note some resilience in a few sectors. The tobacco, railway, and aircraft industries have seen an increase in the variety of exports to larger EU economies like Germany and France, showing that not all trade relationships have deteriorated.
A government spokesperson responded, asserting that the UK is working to improve trade relations with the EU, focusing on reducing unnecessary trade barriers while ruling out any return to the single market or customs union.
Business representatives have been invited to contribute ideas on “resetting” the trade relationship, with discussions centred on economic security.
Progress on improving UK-EU trade is expected to remain slow until the new European Commission is fully established in 2024, and the UK finalises its new industrial and trade strategies.
Economists and industry experts are now calling for a more comprehensive approach to mitigating Brexit’s ongoing impact on British businesses.
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