Brexit has cut trade in almost every sector of the UK economy

The Independent reports on findings by researchers at the Centre for European Reform think tank that almost every sector of the economy has been hit by Brexit.

The paper says that the study found that exports of chemicals and pharmaceuticals have fallen by 21 per cent since the UK left the EU, while those classed as “agrifood” are down 29 per cent:

The report argues that many of the economic costs of Brexit stem from Britain’s departure from the bloc’s single market, suggesting recent calls for a new customs union with the EU would only have a limited impact.

Almost 10 years on from the Brexit vote, the experts urge politicians not to risk repeating the mistakes of that era by pursuing “options that are either unavailable on the terms they envisage, or… unlikely to contribute meaningfully to economic growth”.

While calls for a customs union have gained support among some politicians and business groups, the researchers argue that rejoining the single market would do more to boost trade and economic growth.

Such a move, however, would likely involve a return to freedom of movement and substantial contributions to the EU’s Budget – both of which would be politically fraught.

But the scale of the challenge is laid bare in the report, which found that Brexit “has reduced trade in nearly every sector of the UK economy”.
When it comes to services, for example, the travel industry is down 39 per cent, while financial services exports have fallen 24 per cent.

Total UK exports to the EU have fallen by about 12 per cent and total imports by about 16 per cent. Overall, the losses amount to a reduction in Britain’s worldwide exports of 5 per cent and imports of 8 per cent.

The case for rejoining is overwhelming.