Trade with EU slumps after Brexit

TRADE groups have challenged government claims that post-Brexit freight had returned to 'normal' last month following a record fall in January, saying there were 'fundemental problems' with new trade barriers that were 'real and costly'.

In Januarry after the Brexit transition period ended, according to the Office of National Statistics, UK goods exports to the EU fell 40.7% while imports deopped 28.8%. These were the biggest declines since comparable records began in 1997.

There have been no similar declines in Britain's trade with non-EU countries. This suggests what's happening is likely to be related to Brexit controls and are not down to the consequences of the coronavirus surge and the January lockdown.

David Frost, Boris Johnson's leading advisor on Europe, had claimed that factors like stockpiling before Brexit came into effect on January 1st, meant their was 'less need to move goods in January', and Covid lockdowns had also 'reduced demand' for goods.

'These effects are strting to unwind' he said, adding that freight levels had returned to 'normal levels' since the start of February.

This is now being disputed by the haulage industry, which pinpointed the rise in the number of lorries returning empty yo the continent from the UK. According to a report in the Financial Times this weekend: 'Before Brexit, about 30% of lorries returning to the EU were typically empty. French port data has suggested the figure has risen to 50% in the first two months of this year,...'

Fresh food exports were hit particularly hard. For example new border controls have resulted in the seafood industry experiencing an 83% fall of in sales to Europe, according to Scotland Food and Drink, a trade association. Shane Brennan, chief executive of the Cold Chain Federation, which represents the perishable products industry, said that while trading conditions had impoved since January, but he added: 'I wish the government spent as much time listening to business concerns as they do searching for ways to spin the trade figures.'

***************************************************