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Trade impacts of Brexit

Trade data on trade between the EU and the UK for the first six months of this year confirm what economists had predicted would happen as a result of the additional trade barriers put in place once the transition period following Brexit came to an end on 31 December 2020. Even allowing for COVID-19 and temporary transitional effects, trade flows have reduced as companies have restructured their supply chains on either side of the English Channel.

What is less expected is that the impact on trade flows has not been symmetrical. According to an analysis by Jonathan Portes using UK trade statistics, UK exports of goods to the EU have now recovered roughly to their pre-COVID-19 levels.… Read the rest