Economists have expressed their worry about the impact of Brexit becoming more evident in terms of the UK-EU trade, with the British businesses finding it harder to cope with the post-Brexit red tape. In accordance with the recent report of the Aston University Business School, the UK’s goods trade has suffered a considerable decrease, which is, moreover, enhancing.
The study shows that over the three years after the Brexit trade agreement reached in 2020, the goods export experienced a fall by 27%, while the import rates decreased by 32% as compared to the pre-Brexit forecasts. Furthermore, the downgrade was particularly high for certain industries, i.e., agriculture, clothing, and paper manufacturing. The most impressive change is the reduction of the export rates for edible fruit and nuts by 73.5%.
Despite an increase in the export of tobacco, railway equipment, and aircraft goods, the overall range of British products exported to the EU reduced by 1,645 types across all member states. The report is silent on services, which have done better than expected since Brexit. The authors of the report noted a noticeable decrease in trade in 2023, which is explained by the increasing requirements of post-Brexit trade, including safety checks and labeling. Jun Du noted that while they address the safety of consumers and the environment, they have added enormous costs and complexities to businesses.
This is overwhelming for some. But the administrative tasks are not terrible, and one learns to cope,” concludes Mary Quicke, a cheese producer from Devon.
In response, a government spokesperson acknowledged trade difficulties but maintained that the focus on improving trade relations with the EU ruled out returning to the single market or the customs union. Business leaders began talks this month aimed at “resetting” the UK-EU trade relationship with a focus on economic security, though substantial progress is expected only after 2024.
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