Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK exports to EU fell by £20bn last year, new ONS data shows

UK exports to EU fell by £20bn last year, new ONS data shows

Figures show Brexit compounding Covid disruption, with clothing exports plunging 60%, vegetables down 40% and cars 25%

UK exports of goods to the EU have fallen by £20bn compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.

Numbers released on Friday by the Office for National Statistics (ONS) showed that the combined impact of the pandemic and Britain’s exit from the single market caused a 12% fall in exports between January and December last year compared with 2018.

Highlighting the disproportionate impact of leaving the EU, exports to the rest of the world excluding the 27-nation bloc dropped by a much smaller £10bn, or about 6% compared with 2018 levels.

The ONS compared trade performance against figures from three years ago because that was the last year before distortions caused by firms stockpiling ahead of Brexit deadlines and the spread of Covid-19.

Despite the disruption, the EU remains the UK’s largest trading partner. However, for the first time since comparable records began in 1997, the UK now spends more importing goods from the rest of the world than it does from the EU.

UK goods imported from the EU were down almost 17%, or about £45bn, compared with 2018. In comparison, imports from the rest of the world increased by almost 13%, or about £28bn.


With the EU accounting for just over half of UK exports worldwide, economists said Brexit was serving as an extra headwind for Britain, compounding the disruption from Covid being felt across advanced economies. “UK exporters are continuing to lose market share,” said Gabriella Dickens, an economist at the consultancy Pantheon Macroeconomics.

Although trade levels have picked up in recent months, data from the Netherlands Bureau for Economic Policy Analysis show that real goods exports from advanced economies were 3.8% above their 2018 average in November, outpacing the UK.

The hardest-hit commodities recorded dramatic falls. Outbound shipments of clothing and footwear to the EU were both down by almost 60% compared with 2018. Food and live animal exports – for which more stringent border checks are required – were down almost 18%, while vegetable exports dropped by almost 40%. Shipments of cars to the EU, heavily disrupted by global supply chain issues and Covid, were down by a quarter.

Guillermo Larbalestier, a trade economist at the University of Sussex, said the drop in vegetable exports was probably linked to a fall in the number of seasonal workers available to pick and process crops, more burdensome paperwork and the difficulty in exporting perishable goods in the face of extended delays at the border.

Clothing exports have been affected because a high proportion of garments sold by UK retailers are made in Asia or the US, making them ineligible for the tariffs negotiated in the post-Brexit trade deal.


However, the latest figures do suggest a recovery from the worst of the Brexit damage seen in January 2021, just after Britain’s departure, when exports to the EU plunged by 40%.

According to the latest figures, UK exports to the EU were about £200m higher in December 2021 than the same month in 2018, but much of this was driven by an increase in wholesale gas prices on international energy markets.

Business leaders have warned that border restrictions and reams of red tape have pushed up costs and added to delivery times, permanently undermining the competitiveness of UK goods on the continent.

Sixty-seven percent of firms experienced a challenge when exporting and 72% when importing in the last month, according to ONS surveys.

“There is a lot more friction on trade, which you would expect to have a more medium-to long-term impact,” said Grant Fitzner, chief economist at the ONS.

Gareth Thomas, the shadow international trade minister, said the government had exaggerated the benefits of trade deals with countries outside the EU that have yet to be negotiated. “Ministers are not doing enough to support our exporters in markets outside Europe, while the deal they negotiated with the EU has led to long lorry queues into Dover, a big increase in red tape and a significant decline in trade,” he said.

A UK government spokesperson said: “UK goods exports to EU nations were 4% higher last year compared with 2020. However, as the ONS itself recognises, the impact of the Covid-19 pandemic, global recession and supply chain disruption, have caused higher levels of volatility in recent statistics. It is therefore still too early to draw any firm conclusions on the long-term impacts of our new trading relationship with the EU.

“We are continuing to ensure that businesses get the support they need to trade effectively with Europe.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×