Exports from the UK to the European Union have dropped by 27% since January 2021, when the UK-EU Trade and Cooperation Agreement (TCA) came into force, a study by Aston University has found.
Aston University’s Centre for Business Prosperity‘s report Unbound: UK Trade Post Brexit, suggests that the ‘negative effects’ of the TCA have ‘intensified over time’, with imports from the EU into the UK falling by 32% since its introduction.
In terms of imports, most sectors have diminished in terms of both value and variety, the authors state.
In addition, there has been a 33% reduction in the variety of goods exported from the UK, they noted, with the agricultural, textiles, clothing and materials sectors most impacted.
‘Substantial barriers’
“The Trade and Cooperation Agreement introduced substantial barriers and there are ongoing and marked declines in the value and variety of UK exports and imports,” commented lead author Professor Jun Du of Aston University.
“Without urgent policy interventions, the UK’s economic position and place in the global market will continue to weaken.”
Since the enactment of the TCA, which was established following the UK’s exit from the European Union, the British government has negotiated a variety of trade agreements, however the EU remains its largest trading partner.
‘Uneven effects of Brexit’
According to Aston University, its findings ‘underscore the uneven effects of Brexit and the TCA on UK-EU trade dynamics’, with a need for tailored strategies that address the unique challenges of each sector a necessity.
“Our findings indicate a decoupling of the UK from key EU final goods markets, accompanied by a shift in UK supply chains toward geographically closer EU trading partners for exports and smaller countries for imports,” added Dr Oleksandr Shepotylo, the report’s co-author.
“This shift raises concerns and underscores the urgent need for a strategic reconfiguration of UK supply chains to maintain competitiveness.”
The full report can be found here.
