Brexports

There was concern in some quarters for UK trade with the EU following Brexit. The most recent figures show that following an initial slump in January which potentially came as a result of new rules and procedures as well as the pandemic, exports to the EU recovered, increasing by 47% in February. Will this upward trend continue?

The end of the UK/EU transition period at the turn of the year brought into effect new regulations and procedures. These changes were forecast by many to cause widespread disruption to trade between the UK and EU. 

Trade data from the Office for National Statistics for January appeared to confirm these fears, as the value of UK goods exported to the EU fell by more than 40%, from around £13.5bn to £8bn. 

However, the latest figures for February offer some reassurance, with exports rebounding strongly (up 47%). Evidence from French customs suggests further encouragement, with the observation that by March, trade levels were “close to normal allowing for the persistence of the economic consequences of the pandemic”.

Although many businesses in the UK are still adapting to the new regulations and increased barriers to trade with the EU, a recent survey by Deloitte suggested that just under 10% of CFOs experienced ‘significant’ or ‘severe’ disruption due to Brexit. Most businesses reported facing only mild or no difficulties.