UK food exports to the EU fell by £2.4bn in the first 15 months after Brexit, due to post-Brexit red tape and the Covid-19 pandemic, according to an analysis of HMRC (HM Revenue and Customs) data. Reduced demand for hotels.
Strict customs rules and long port delays have prevented many UK food producers from shipping fresh produce to the EU, according to the Guardian. Post-Brexit bureaucracy and rising costs mean exporting fresh food and making a profit is difficult.
After 1 January 2021 (the end of the Brexit transition period), UK food exports fell by 19% in the 15 months to 31 March 2022 to £10.4 billion before Brexit.
Of these, fruit and vegetable exports were hit the hardest, falling 44% from £1.5bn in the 15 months before Brexit to £847m in the 15 months after Brexit. Meat and fish exports fell 16% to £3.5bn to £2.9bn over the same period, while dairy exports fell 13% to £1.6bn to £1.4bn.
These figures are in line with data from Eurostat. The latest figures show that total EU imports from the UK fell by 13.6%, from €169 billion in 2020 to €146 billion in 2021.
The United Kingdom chose a “hard Brexit” and withdrew from the single market. All goods entering the EU must submit a customs declaration and proof of compliance with quality standards.
However, HMRC data also shows that total exports in the first three months of the year are gradually recovering. This suggests that exporters are adapting their operations to the new trade barriers.
UK exports to Ireland rose by 67% in the first three months of the year, while exports to France and the Netherlands were up 28.5% and 40% respectively. This increase may be related to the energy crisis and war in Ukraine. Fossil fuel exports to the UK and UK rose 50% in March compared to the previous month.
The increase in fossil fuel exports was driven by the Netherlands and Ireland, which rose by £327m (50%) and £23m (62%) respectively, according to HMRC’s monthly review.