Disruption attributable to Brexit took its toll on Anglo-French commerce firstly of this yr, mirroring declines in business exercise between the UK and different giant EU international locations.
French exports to the UK have been down 13 per cent in January in contrast with the common of the earlier six months, whereas French imports from the UK fell 20 per cent, in accordance with the French customs office. “Commerce with Britain is disrupted on account of Brexit,” it stated. General, French exports and imports each rose in January from the earlier month.
Anglo-French commerce had recovered from the impression of the coronavirus pandemic final yr, rising for the second consecutive yr, boosted by firms stockpiling earlier than the UK left the EU single market on the finish of December.
Although the UK and EU agreed a last-ditch trade deal to keep away from tariffs on most items which got here into power on January 1, commerce has nonetheless been disrupted by greater transport prices, transportation delays, well being certificates necessities and extra complicated customs necessities on the border.
Some tariffs are still levied on items which might be imported into the UK after which re-exported to EU markets with little or no additional processing.
The French figures added to indications that the frictional obstacles and uncertainty created by Brexit have dealt a heavy blow to business exercise between the UK and the EU, its greatest buying and selling associate.
German exports to Britain in January were down about 30 per cent yr on yr, persevering with a development of declining commerce between the 2 international locations because the Brexit referendum in 2016, in accordance with figures launched by the federal statistical company this week.
Individually, Italy final month reported a 38 per cent year-on-year drop in exports to the UK and a 70 per cent drop in British imports in January — each a lot steeper declines than these with different international locations.
Nonetheless, economists stated it was nonetheless unclear how a lot of the declines in UK-EU commerce have been the results of Brexit and the way a lot have been attributable to the fallout from the pandemic, which dealt a heavy blow to world commerce within the first half of final yr.
“I’ve a tough time deciding what’s the impression of Brexit and what’s merely right down to the impression of coronavirus,” stated Gilles Moec, chief economist at French insurer Axa.
Earlier than the UK left the EU single market on the finish of final yr, many UK and EU firms had constructed up their inventories in preparation for greater prices and disruption from Brexit, which can have contributed to the autumn in January as they drew down their shares, Moec added.
“There have been so many tales about firms that had hassle exporting or importing after Brexit and lots of hauliers have been reluctant to take care of the customs points, so there will need to have been an impression,” he stated, including that it was “nonetheless too early” to say how a lot of the drop in commerce with the UK can be everlasting.
The UK has been steadily declining as a buying and selling associate for the remainder of the EU. Its share of total exports from the 27-country bloc has fallen from 17 per cent to 14 per cent because the 2016 Brexit referendum, in accordance with Eurostat.
General figures for EU commerce in January are on account of be printed later this month. However final yr EU exports to the UK fell 13.2 per cent, whereas EU imports from the UK have been down 13.9 per cent. Whereas the pandemic brought about total EU commerce to fall, the UK had a steeper decline than the EU’s three different essential buying and selling companions — the US, China and Switzerland.