GOODS trade between the UK and EU has declined and is predicted to only get worse due to Brexit red tape on British businesses, a study has warned.
A report by Aston University Business School found that many smaller UK producers have stopped exporting small amounts to the EU due to the introduction of more rules and regulations.
The study showed that between 2021 and 2023 UK goods exports to the EU fell 27% and imported goods by 32% in comparison to predictions without Brexit happening.
A variety of trade export goods have slumped as well with 1645 fewer types of British products exported to every EU country.
Researchers who conducted the report said one of the main reasons why smaller British producers have given up on exporting small consignments to some EU nations is because of the increase in red tape after the UK left the European Union.
The service sector is not included in the report, which has performed better than most experts had expected since Brexit.
The report said there was a “noticeable worsening of EU-UK trade in 2023”.
“The negative impacts of the [trade agreement] have intensified over time, with 2023 showing more pronounced trade declines than previous years,” it said.
Clothing makers, wood and paper manufacturers, and farmers are among the hardest hit industries according to the report with many subcategories' values falling by well over half.
Edible fruit and nuts reported the biggest decrease in export value as it plummeted by 73.5%.
Trade with smaller and more distant countries in the EU has been the most affected, but a small number of sectors have proven to have weathered the post-Brexit storm, especially in terms of exports to bigger European economies like France and Germany.
A UK Government spokesperson told the BBC: “Work to improve our trade and investment relationship with the EU and tear down unnecessary trade barriers, while recognising that there will be no return to the single market, customs union or freedom of movement.”
The broadcaster also reported that business representatives were “invited” by the UK Government to contribute early ideas on “resetting” the trade relationship with the EU, with a focus on “economic security”.
It has been reported that progress in improving trade relations between the UK and the EU is unlikely to improve until next year when the new European Commission is firmly established, and the UK Government has completed new industrial and trade strategies.
