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Britain’s trade with the EU fell sharply in July, with Brexit and the global pandemic dropping exports by £ 1.7bn from July 2018 and imports down by £ 3bn sterling, according to official data.
The Office for National Statistics (ONS) said the drop was largely due to the drop in medicines and pharmaceuticals, which were particularly affected by the need for separate regulatory approval after Brexit.
Experts said the latest ONS figures could be a sign the UK is losing its overall competitiveness.
Compared to 2018, which the ONS describes as the most recent ‘stable’ period in UK trade, the evolution of trade levels is brutal.
In July, total merchandise exports, excluding precious metals, fell by £ 300m as a result of a £ 900m (6.5%) drop in exports to the EU, the EU said. ONS.
At the same time, exports to non-EU countries increased by £ 700million, which is not enough to offset the overall drop.
UK Chamber of Commerce Trade Policy Officer William Bain said: “Overall the numbers are still worrying. Together with German trade data earlier this week, the UK is clearly trading less with the EU than it was three years ago. SMEs and other businesses will want the UK government and the EU to take action to help improve this situation in the months to come.
The date released by Germany’s Federal Statistics Office put the UK on track to exit the country’s top 10 trading partners for the first time in 70 years, with UK exports falling 11% to 16 , € 1 billion (£ 13.8 billion) in the first half of 2021.
“The UK’s loss of importance in foreign trade is the logical consequence of Brexit. These are probably lasting effects, ”said Gabriel Felbermayr, president of the Institute for the World Economy in Kiel.
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Ana Boata, head of macroeconomic research at commercial credit insurer Euler Hermes, said: “UK exporters are losing their competitive edge.
She also cited the decline in financial services, which was not covered by the Brexit trade deal, as a contributing factor.
“Since their peak in 2017, financial services – the UK’s largest exporting sector – have steadily lost market share.
“The UK is the only one of the 10 biggest countries to see this happen, with Brexit compounding the decline.”
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