A new report from Aston University reveals that Brexit continues to significantly disrupt goods trade between the United Kingdom and the European Union, with UK exports to the EU estimated to be 17% lower between 2021 and 2023 than if Brexit had not occurred. The study indicates that this decline is not a temporary adjustment but part of deeper structural changes that are expected to persist, impacting economic growth.
Published on Tuesday, the research highlights that since the UK officially left the EU on December 24, 2020, the aftermath has complicated the Labour government’s efforts to stimulate economic growth. Despite these challenges, UK Prime Minister Keir Starmer has emphasized economic growth as a priority in the upcoming government budget but has dismissed the option of rejoining the EU single market or customs union.
The report points out that trade barriers introduced by the post-Brexit deal have especially affected small businesses in sectors like food and clothing, leading to a decrease in the variety of goods exported to the EU due to heightened costs and bureaucratic hurdles. To counter these issues, researchers suggest prioritizing sector-specific trade agreements and enhancing customs procedures with digital technology.
Despite the fall in goods exports, the UK government notes that services exports to the EU have reached a record high, underlining the complex nature of the post-Brexit economic landscape. The government pledges to improve trade relations and reduce unnecessary barriers while maintaining its stance against rejoining the EU’s single market.
