Post Brexit: collapse of EU trade with the UK

Brexit and the subsequent bureaucratic problems had a very strong effect on the import export from the Old Continent.

Let's start with France: French exports to the UK fell by 13% in January compared to the average of the previous six months, while French imports from the UK fell by 20%, according to the French customs office. The UK was one of the few countries with which France has a trade balance in surplus.
Anglo-French trade had recovered from the impact of last year's coronavirus pandemic, surging for the second consecutive year, buoyed by companies stockpiling before the UK left the EU single market in late December.

Moving on to Germany: German exports to Britain in January fell by about 30% year-over-year , continuing a downward trend in trade between the two countries since the Brexit referendum in 2016, according to data released by the statistics agency. federal this week.

Finally, Italy experienced a 38% year-over-year decline in UK exports and a 70% decline in UK imports in January – both much steeper declines than those with other countries.

The reasons for the collapse are many:

• despite the agreement for the exclusion of duties between the two parties, there were bureaucratic problems that slowed down the movements;
• truck drivers are afraid of being blocked due to the Covid-19 events;
• the epidemic has compressed consumption;
• companies had accumulated inventory in the last quarter that remained unsold;
• it cannot be excluded that the United Kingdom is looking around to increase the interchange with areas that are closer culturally, such as Canada, Australia, New Zealand etc.

As we have said, the vertical decline may be due to a set of temporary causes, or precisely to a change in the direction of British trade. In the coming months we will see which of the two options is the real one, however remembering that since June Boris Johnson wants to get his country out of any form of lockdown.

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The Post Brexit article : collapse of EU trade with the UK comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/post-brexit-crollo-dellinterscambio-della-ue-verso-il-regno-unito/ on Sat, 06 Mar 2021 11:09:28 +0000.