UK - EU trade fell slightly behind after Brexit

UK - EU trade fell slightly behind after Brexit

Trade with the Netherlands was the only trade to witness an increase since the UK left the union

Containerised trade boomed during the pandemic worldwide, and trade within the EU has seen a steady rise. However, analysts estimate that the UK fell slightly behind its European neighbours. UK-based transport and logistics research firm MDS Transmodal (MDST) compared the total international trade of the UK vs EU states over the period from 2019 to 2022. A contraction of 3% has been projected for the UK over this period, while trade to and from the EU increased by 4.6%, reports MDST Senior Analyst Antonella Teodoro. For 2022, the research firm anticipated that trade with EU countries accounted for 67% of total international trade for the UK, up from 65% in 2019. “The two percentage points increase estimated for UK trade with the EU is driven by a large contraction in UK trade with non-EU countries rather than an increase in the volume moved between the UK and the EU,” claims Teodoro. The UK’s key partner countries have remained largely the same over the past few years. Trade with the Netherlands was the only one to witness an increase since Brexit, according to the firm. “On the export side, we estimate a contraction of almost 20% for cargo moved to Ireland and approximately 25% to Germany, while volumes to the Netherlands are estimated to have gone up by around 30%,” reveals the report. As for imports from the EU, MDST highlighted that volumes from Germany dropped by 23% and from Spain by around 9.3%. On the other hand, imports from the Netherlands saw the greatest percentage growth, equating to more than 31%. A thorough assessment that goes beyond the comparison of overall trade would be required before we lay the blame on Brexit for the different performances, says the report. “What is clear, however, is international trade in and out of the UK has deteriorated since its breakaway from the EU,” concludes the analysis.
Source: MDS Transmodal