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European Union

Brexit-Related Disruption: Five Areas of UK Trade Relation Shift

Strategic Insights

— 1 min read

The UK's departure from the EU single market and customs union on January 1 has caused significant disruptions across various industries, from agriculture and fishing to service industries. The British government's decision to leave the bloc has resulted in new trading arrangements, leading to friction and extra costs for businesses and consumers alike. The Financial Times examines five areas where Brexit-related disruption has had a significant impact.

Key Takeaways:

  • Agriculture and fishing industries face significant paperwork and customs procedures for exporting to the EU, with fishermen experiencing a "standstill to a trickle" in export flows.
  • British farmers are being undercut by cheap EU imports due to the government's decision not to impose full border checks on imports from the EU until July.
  • Northern Irish consumers are facing product shortages and difficulties in securing certain products from Great Britain due to the protocol in the Brexit withdrawal agreement.
  • Small businesses have struggled to adapt to the trading relations with the EU, with many discovering that goods being brought into Britain and then exported to the EU incur tariffs, making the UK unviable as a trade hub.
  • The impact of Brexit on service industries is only starting to be felt, with professionals needing to secure visas and work permits to operate in the bloc, causing concern for industries such as music, conferences, and fashion.
  • The British government has announced a £23m compensation package for fishermen but the long-term impact of new border frictions remains unclear.
  • Fish exports have decreased significantly, with a 0 ('000 tonnes) in 2019 to 60 ('000 tonnes) in 2019.
  • The index of UK ports has remained relatively stable, but with a 14-day rolling average of 80 in Q1 2021 compared to 100 in Q1 2020.
  • The transits and delays at UK ports have decreased, but the measurement is based on 500 entries within 500 meters of each port.

Sources:

  • Finch Financial Times
  • Marine Management Organisation
  • Huq
  • BBC
  • The Times

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