UK only 10th most important partner
Trade with the UK has shrunk since Brexit
2/10/2022, 7:12 am
Brexit is leaving its mark: trade between Germany and Great Britain is declining significantly. In addition, the country falls behind in the list of Germany’s most important trading partners. The controls on EU imports that have been in place since the beginning of the year could fuel the process.
After Brexit, Great Britain continues to lose importance as a trading partner for Germany. Even the recovery of the global economy from the corona pandemic was no help for German-British trade in 2021, according to an evaluation by the federal company Germany Trade and Invest (GTAI).
“While the trade volume with all other partners in the top ten in the Corona rebound almost exclusively grew in double digits, trade with the United Kingdom even shrank by 4.6 percent,” said GTAI expert Marc Lehnfeld. The UK slipped to tenth place from seventh place among the most important goods trading partners. Both exports to Great Britain and imports are affected. Imports fell by 8.5 percent in 2021 compared to the previous year, while exports fell significantly less, by 2.6 percent.
German imports will increase significantly in 2020
According to the Federal Statistical Office, Germany increased its exports of goods last year by 14.0 percent compared to 2020 to the best value of 1,375.5 billion euros. That was 3.6 percent above the level of the pre-crisis year 2019.
Lehnfeld said the UK could even slip out of the German top ten. The December data from the Federal Statistical Office, to which the foreign trade expert refers, are still provisional and could be revised. The British lead over the Czech Republic is currently only marginal. “Since German-British trade has been developing sluggishly for years, tenth place should be understood more as a reprieve,” said Lehnfeld. “German-Czech trade is developing better in comparison.”
As of January 1, 2021, the UK is no longer a member of the EU Customs Union and Single Market. The Brexit trade agreement agreed at the last moment ensures freedom from customs duties in most areas. Nevertheless, there are difficulties in trading due to increased bureaucratic requirements. Lehnfeld expects further problems that could further inhibit trade. The expert particularly emphasized the British controls on EU imports that were introduced at the beginning of the year. “The forthcoming final stage in the introduction of further customs formalities for food in the summer will put a further strain on German exports to the kingdom,” said Lehnfeld.