Researching Scientific Discoveries - The EU market for clothing and footwear suffers due to Brexit.
Brexit has led to a significant decrease in the UK's exports of clothing and shoes to the EU, according to a recent study. These product categories were worth £7.4 billion (€8.7 billion) in 2019, but plummeted to £2.7 billion by 2023. The consultancy Retail Economics and the online platform Tradebyte conducted the study.
The decline is one of the key factors contributing to a 20% drop in total non-food exports to EU member states. After the UK's exit from the EU in January 2020, it is no longer part of the EU's single market and customs union. Although a free trade agreement was finally reached, new tariffs have been introduced in certain areas. Additionally, the increased bureaucratic regulations have made it more challenging for businesses to operate. As a result, exports have taken a hit. Labour Party leader Keir Starmer, who is predicted to win the upcoming July 4 parliamentary election, announced intentions to align UK regulations on food and agricultural products with EU regulations, yet, he remains adamant about the UK's separation from the single market and free movement.
However, not all sectors have been negatively impacted. Health and beauty products, as well as home improvement and gardening supplies, have seen an increase in export volume. "In some cases, the decline may be attributed to British companies setting up operations within the EU to circumvent new regulations," explained Richard Lim, one of the study's co-authors. "Nevertheless, many British clothing manufacturers have relocated their production to an EU country due to the additional bureaucratic challenges."
The service industry, on the other hand, has experienced a remarkable rise since Brexit. The think tank UK in a Changing Europe reported a 30% increase in service exports compared to February 2020. This sector, encompassing legal services and consulting, has now eclipsed manufacturing and transport equipment, becoming the largest export sector in the UK.
