Study reveals that Brexit led to a $34 billion trade loss for the UK over two years
A report from the LSE has revealed the financial consequences of Britain's departure from the EU. Read Full Article at RT.com.
TroibNews 
A report from the London School of Economics (LSE) has revealed the financial consequences of Britain's exit from the European Union.
The Center for Economic Performance at LSE found that Britain's departure from the EU resulted in an estimated loss of around $34 billion in trade within the first two years under the EU-UK Trade and Cooperation Agreement.
The impact has been particularly harsh on small and medium-sized enterprises, with approximately 14% of UK firms that previously exported to the EU ceasing their trade with the bloc entirely since the agreement took effect in January 2021.
Data from the study, which surveyed over 100,000 firms, indicated that total goods exports from the UK decreased by 6.4% in 2022 compared to pre-Brexit forecasts. Exports to the EU experienced an even steeper decline of 13.2%, largely due to trade barriers implemented by the TCA.
The research underscored how non-tariff barriers, including customs checks, paperwork, and regulatory compliance requirements, have posed significant challenges for businesses. While larger firms have managed to adapt, smaller businesses continue to struggle due to limited resources and expertise.
Imports from the EU also experienced a downturn, albeit less pronounced, declining by 3.1%. Many UK importers have mitigated losses by seeking materials from outside the EU.
Thomas Sampson, a co-author of the study, noted that while the total reduction in trade has thus far been less drastic than the Office for Budget Responsibility's forecast of 15%, the long-term effects remain uncertain.
These findings emerge as the UK government gears up for negotiations with the EU next year to revise the TCA, which serves as a post-Brexit trade deal established in December 2020, detailing regulations for trade, security, and cooperation following the UK's departure from the single market and customs union.
Brexit has caused disruptions in trade between the UK and EU, resulting in higher costs for businesses and anticipated long-term GDP losses averaging around 0.6% for the 27 EU member states. Sectors such as automotive and agriculture have notably struggled due to regulatory changes and diminished access to UK markets.
Navid Kalantari for TROIB News
The Center for Economic Performance at LSE found that Britain's departure from the EU resulted in an estimated loss of around $34 billion in trade within the first two years under the EU-UK Trade and Cooperation Agreement.
The impact has been particularly harsh on small and medium-sized enterprises, with approximately 14% of UK firms that previously exported to the EU ceasing their trade with the bloc entirely since the agreement took effect in January 2021.
Data from the study, which surveyed over 100,000 firms, indicated that total goods exports from the UK decreased by 6.4% in 2022 compared to pre-Brexit forecasts. Exports to the EU experienced an even steeper decline of 13.2%, largely due to trade barriers implemented by the TCA.
The research underscored how non-tariff barriers, including customs checks, paperwork, and regulatory compliance requirements, have posed significant challenges for businesses. While larger firms have managed to adapt, smaller businesses continue to struggle due to limited resources and expertise.
Imports from the EU also experienced a downturn, albeit less pronounced, declining by 3.1%. Many UK importers have mitigated losses by seeking materials from outside the EU.
Thomas Sampson, a co-author of the study, noted that while the total reduction in trade has thus far been less drastic than the Office for Budget Responsibility's forecast of 15%, the long-term effects remain uncertain.
These findings emerge as the UK government gears up for negotiations with the EU next year to revise the TCA, which serves as a post-Brexit trade deal established in December 2020, detailing regulations for trade, security, and cooperation following the UK's departure from the single market and customs union.
Brexit has caused disruptions in trade between the UK and EU, resulting in higher costs for businesses and anticipated long-term GDP losses averaging around 0.6% for the 27 EU member states. Sectors such as automotive and agriculture have notably struggled due to regulatory changes and diminished access to UK markets.
Navid Kalantari for TROIB News
