British goods exports to EU drop 41pc in January post Brexit
BRITISH goods exports fell 41 per cent in January from the month before while imports dropped 29pc, reports Bloomberg
16 March 2021 - 19:00
Exports of food and live animals to the EU dropped 64 per cent, primarily due to stricter checks and certifications implemented by the EU at the end of the transition period.
UK gross domestic product shrank 2.9 per cent because of drops in both manufacturing and service industries.
The report shows the hardest hit EU imports were machinery and transport equipment such as cars, and medicinal and pharmaceutical products.
Prime Minister Boris Johnson insisted any friction suggested by more high-frequency data was minimal, but Germany, French and Italian statistical agencies indicated there was a hefty drop in shipments from the EU to Britain.
'What we don't know is how much of this is permanent and how much is 'teething troubles' and will gradually return. You could possibly attribute a quarter of the changes to stockpiling effects,' said former UK trade negotiator David Henig.
EU Bloc Relations Minister David Frost declared that figures would be unusual in January and that freight volumes have since returned to normal.
'Many businesses have made the changes needed to trade effectively with the EU, but we are focused on providing active and extensive support to others who need to adapt,' said Mr Frost.
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