Brexit: UK trade falls since the end of the transition period

 

There were a lot of debates surrounding how things will be after Brexit. Official figures that were recently disclosed show that UK trade with the European Union has drastically fallen since the end of the transition period.

According to ONS figures, the total number of transactions, excluding precious metals, saw its largest monthly fall since records began in January. It decreased by 19.3% which equals to £5.3bn. What led to such a downfall? This was driven by a 40.7% (£5.6bn) fall in exports to the EU in January and a 28.8% (£6.6bn) collapse in imports. During the same time frame, exports to countries outside of the European Union increased by 1.7% (£0.2bn).

This change follows the new UK/EU trade and cooperation agreement which replaced the UK’s previous membership as a complete member of the Union. The numbers also show that in the run up to January, when Brexit terms were still unclear, there was an increase in imports and exports of goods in November and December 2020. According to the ONS, this is “consistent with potential stockpiling”.

Ever since the new free trade agreement was established, retailers have had to set up more processes and they have advanced that there are several additional costs involved now.


Retailers have to go through additional expenses © Royalty-free image

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