Trade volumes between the United Kingdom and the European Union declined in January after Britain’s departure from the European Union and restrictions imposed to limit the spread of the Corona virus dealt a severe blow to the country’s fragile economy, with exports to the European Union decreased by 40.7% and imported goods by 28.8% compared to December.
The charts indicate a decline of 2.9% on a monthly basis in the country’s total economic output, and it is reported that Britain left the European single market on January 1, ending the era of free trade and customs duties that extended for nearly half a century, thus, the necessary paperwork will increase and border delays will be prolonged on both sides of the link between Britain and the Union.
The trade situation worsened after stockpiling operations before the implementation of the new trade laws, and economic analysts indicated that this drop in exports reflects the turmoil caused by Britain’s exit from the European Union.
Overall, UK exports decreased by 19.3% and imports decreased by 21.6%, which represents the largest monthly decline since records began in 1997, while shipments to countries outside the European Union witnessed a slight increase, and imports from countries outside the European Union decreased 8%.
But the EU is Britain’s closest and largest trading partner, accounting for a 40% share of its exports, and Brexit critics have said that it would be very difficult for trade with other countries to help offset the impact of trade barriers with the EU, but on the other hand, preliminary results suggest that Britain’s trade began to improve at the end of January.