Imports from the EU have dropped by 25 per cent, according to a new study.
The new report says there was a sharp drop in the number of trading ties between British exporters and EU importers after the Brexit deal was signed, with “lower value” relationships hit, as Britain stopped selling to smaller countries in the EU.
However, the Centre for Economic Performance at the London School of Economics found no proof “that uncertainty and anticipation” after the vote led to a significant decline in relative UK trade with the EU.
Moreover, the study also found no evidence the Brexit deal led to a decline in UK exports to the European Union.
Trade takes a hit
The report said the signing of the agreement did lead to a “deep decline” in relative imports from the EU, which continued throughout 2021, reducing UK imports from the EU relative to the rest of the world by 25 per cent last year.
However, the study said “although UK exports to the EU fell sharply at the start of 2021, they subsequently rebounded, and our results do not show a persistent negative effect of the TCA on export values.”
The study also warned “against drawing premature conclusions about the long-run trade effects of Brexit”.
According to the Telegraph, co-author and associate professor of economics at LSE, Thomas Sampson, said the increased trade costs “make the UK a harder place to do business.”