U.K. Exports With the EU Again Above Pre-Brexit Levels

U.K.–EU Trade After Brexit
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U.K. exports of goods to the European Union were above pre-Brexit levels for a second month in June, half a year after the country severed trade ties with the bloc.

Exports to the EU rose to £14.3 billion and imports increased to £19.1 billion, the latest data from the Office for National Statistics showed on Thursday. Still, that widened the U.K. merchandise deficit with the 27-member group by 7.4% compared to May.

Total exports of goods, excluding precious metals, fell 2.2% in June, driven by a 5.6% slump in exports to non-EU countries, mainly because of declines in medicinal and pharmaceutical products and cars.

Trade in June

Monthly figures for U.K. trade flows
  • Average of pre-referendum period  (2010–2015)
  • Average of referendum year and withdrawal negotiations period (2016–2019)
  • Transition period and Covid-19 pandemic (2020)
  • Post-Brexit (2021)
Note: Figures are seasonally-adjusted and exclude non-monetary gold and other precious metals.
Source: U.K. Office for National Statistics

All trade flows recorded double-digit growth compared with a year ago, with imports from non-EU countries (35%) and exports to the EU (29%) rising at the fastest rate.

June Figures for U.K. Trade Flows

  • Pre-referendum
  • Referendum year and withdrawal negotiations
  • Transition period and Covid-19 pandemic
  • Post-Brexit

Exports of live animals, meat and dairy products to the EU grew 14% in June compared to a year before. U.K. producers in the food and agriculture industries have been facing the burden of checks and regulations the bloc put forth. Exports of fish and shellfish, another key exporting industry, increased 17%, while exports of iron and steel jumped 61% from the year before.

Key Exports

How exports to the EU for selected U.K. products fared in June
  • Pre-referendum
  • Referendum year and withdrawal negotiations
  • Transition period and Covid-19 pandemic
  • Post-Brexit
Note: Figures are not seasonally-adjusted.

Monitoring the shifting composition of U.K. trade with the EU and the rest of the world will be key to gauging the success of the government’s “Global Britain” project. The total trade deficit more than doubled to £5.2 billion in the second quarter.

Trading Partners

Share of total U.K. exports and imports
  • Pre-referendum
  • Referendum year and withdrawal negotiations
  • Transition period and Covid-19 pandemic
  • Post-Brexit

Brexit’s impact on the U.K. economy will take a long time to materialize fully.

Despite a torrid start to the year, U.K. exports to Europe have largely recovered, but are still lagging the wider rebound in global trade, according to James Smith, an economist at ING, before the release. This suggests “businesses are adapting to the new processes,” he said.