According to a new study, exports from the EU to Great Britain have fallen significantly because of Brexit. British-European trade has been “significantly disrupted” since Great Britain’s participation in the EU internal market and the European customs union ended, wrote the scientists from the London School of Economics and Political Science (LSE) in the article published on Tuesday.
Accordingly, the Brexit vote in June 2016 had hardly any impact on trade between the EU and the United Kingdom. But that changed with the entry into force of the trade agreement agreed on Christmas Eve 2020. “We assume that the implementation of the new trade relationship has led to a sudden and sustained drop in imports from the EU by 25 percent compared to the rest of the world,” the post said.
British exports to the EU, on the other hand, only fell to a small extent and only temporarily. However, the data would indicate that many UK companies have halted exports since January 2021. “It seems the UK has just stopped selling a lot of products to smaller countries in the EU,” said co-author Thomas Prayer.
The trade agreement with the EU should ensure that hardly any tariffs are incurred. However, trading costs have increased because of the contract, said co-author Thomas Sampson of the Center for Economic Performance. “These changes make the UK a more difficult place to do business.”
Despite the agreement, the bureaucratic burden for exporters has increased significantly. The UK government claims declines in foreign trade are the result of global problems due to the pandemic. Rather, Great Britain could conclude significantly better trade agreements due to Brexit. So far, however, there is no evidence for this. (dpa)