Research Reveals: Brexit Progressively Strains Britain's Resources
A study conducted at Aston University in Birmingham reveals that the United Kingdom's trade with the European Union (EU) is experiencing notable decreases due to Brexit. Import and export values have plummeted significantly, with UK goods exports to the EU decreasing by 27% and imports by 32% between 2021 and 2023, the years post-Brexit. Furthermore, the variety of UK exports has decreased, with 1,645 fewer types of British goods being exported to each EU country. Smaller EU economies were disproportionately impacted, with larger economies like Germany sustaining less damage. It's important to note that this study does not consider the services sector, which has shown better-than-expected performance since Brexit. Exports of tobacco, railway, and aircraft goods have also experienced growth. The United Kingdom formally left the EU in January 2020 and has been independent of its customs union and single market since 2021.
Regardless of a last-minute agreed free trade deal, numerous bureaucratic barriers and other trade hindrances remain a challenge. The study indicates that the most affected sectors are agriculture, fashion, and wood and paper production. The largest export value decrease occurred in edible fruits and nuts, with a near 74% decrease in value. "The detrimental impacts of the trade deal have amplified over time, with 2023 demonstrating a more substantial trade decline than previous years," the study states.
London aims to strengthen ties with the EU
As a result, many smaller British exporters have ceased trading with the EU. The study's authors emphasize the requirement for political interventions, such as alleviating the negative consequences of the trade deal, modifying export supply chains, and offering support to companies in managing trade barriers.
The newly established Labour government in London aims to improve relations with the EU. However, Prime Minister Keir Starmer firmly opposes joining the customs union or single market. Offers from the EU to simplify Brexit rules for youth interactions have yet to receive a positive response.
- Despite Prime Minister Keir Starmer's opposition to rejoining the EU's customs union or single market, the newly established Labour government in London is actively seeking to improve relations with the EU.
- The decreases in trade between the UK and the EU, as highlighted by the study conducted at Aston University, underscore the need for the EU and UK to collaborate more closely to minimize barriers and boost trade, particularly in sectors such as agriculture, fashion, and wood and paper production.
