It’s enough to make you wince. New research released this week has exposed further damage caused to the domestic economy by Brexit, with Britain’s recent trade numbers paling in comparison to other nations within the G7 bloc.
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Damning impact of Brexit laid bare by new research
The Institute for Public Policy Research (IPPR), one of the leading think tanks in the UK, is now imploring the Labour government to rewrite the rules of the existing trade agreements with the EU – in a bid to ‘Trump-proof’ the UK from further fiscal shocks.
In their 44-page document, the IPPR were particularly scathing in regards to the new trade agreements forged after Brexit took effect, claiming pacts with Australia and New Zealand only offer ‘limited benefits’. They also lament the failure to land larger deals.
“The UK exercised its post-Brexit independent trade policy to rack up a series of roll-over deals and new trade agreements with countries such as Australia and New Zealand. But the agreements have offered limited economic benefits.”
“Larger deals with the US and India have proved elusive. At the same time, [Brexit] reduced goods trade flows in both directions. This has translated into a disappointing picture for goods trade with both the EU and the rest of the world.” | IPPR
G7 comparison exposes UK trade shortcomings
The numbers crunched by the researchers, for the four years between 2019 to 2023, make for difficult reading. Canada, France, Germany, Canada, Japan, and the US saw their goods trade rise by an average of 5%, as part of a ‘post-pandemic boom’.
Anyway, guess who missed the boat? For the same time period, figures from the Office for Budget Responsibility (OBR) reveal that the UK saw its trade slump by 10% – with all exports ‘faring poorly’. But hey, blue passports right…
“There have been limited opportunities for effective parliamentary scrutiny of the new post-Brexit deals – and The UK’s efforts have translated into a disappointing picture for goods trade. Both non-EU and EU exports have fared poorly.”
“By the end of 2023, there was a 10% fall in goods trade from 2019 levels, compared with an average 5% rise for other G7 countries by the third quarter of 2023. The UK missed out on a post-pandemic boom compared with our main competitors.” | IPPR