London Daily

Focus on the big picture.
Saturday, Mar 21, 2026

UK exports to EU fell by £20bn last year, new ONS data shows

UK exports to EU fell by £20bn last year, new ONS data shows

Figures show Brexit compounding Covid disruption, with clothing exports plunging 60%, vegetables down 40% and cars 25%

UK exports of goods to the EU have fallen by £20bn compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.

Numbers released on Friday by the Office for National Statistics (ONS) showed that the combined impact of the pandemic and Britain’s exit from the single market caused a 12% fall in exports between January and December last year compared with 2018.

Highlighting the disproportionate impact of leaving the EU, exports to the rest of the world excluding the 27-nation bloc dropped by a much smaller £10bn, or about 6% compared with 2018 levels.

The ONS compared trade performance against figures from three years ago because that was the last year before distortions caused by firms stockpiling ahead of Brexit deadlines and the spread of Covid-19.

Despite the disruption, the EU remains the UK’s largest trading partner. However, for the first time since comparable records began in 1997, the UK now spends more importing goods from the rest of the world than it does from the EU.

UK goods imported from the EU were down almost 17%, or about £45bn, compared with 2018. In comparison, imports from the rest of the world increased by almost 13%, or about £28bn.


With the EU accounting for just over half of UK exports worldwide, economists said Brexit was serving as an extra headwind for Britain, compounding the disruption from Covid being felt across advanced economies. “UK exporters are continuing to lose market share,” said Gabriella Dickens, an economist at the consultancy Pantheon Macroeconomics.

Although trade levels have picked up in recent months, data from the Netherlands Bureau for Economic Policy Analysis show that real goods exports from advanced economies were 3.8% above their 2018 average in November, outpacing the UK.

The hardest-hit commodities recorded dramatic falls. Outbound shipments of clothing and footwear to the EU were both down by almost 60% compared with 2018. Food and live animal exports – for which more stringent border checks are required – were down almost 18%, while vegetable exports dropped by almost 40%. Shipments of cars to the EU, heavily disrupted by global supply chain issues and Covid, were down by a quarter.

Guillermo Larbalestier, a trade economist at the University of Sussex, said the drop in vegetable exports was probably linked to a fall in the number of seasonal workers available to pick and process crops, more burdensome paperwork and the difficulty in exporting perishable goods in the face of extended delays at the border.

Clothing exports have been affected because a high proportion of garments sold by UK retailers are made in Asia or the US, making them ineligible for the tariffs negotiated in the post-Brexit trade deal.


However, the latest figures do suggest a recovery from the worst of the Brexit damage seen in January 2021, just after Britain’s departure, when exports to the EU plunged by 40%.

According to the latest figures, UK exports to the EU were about £200m higher in December 2021 than the same month in 2018, but much of this was driven by an increase in wholesale gas prices on international energy markets.

Business leaders have warned that border restrictions and reams of red tape have pushed up costs and added to delivery times, permanently undermining the competitiveness of UK goods on the continent.

Sixty-seven percent of firms experienced a challenge when exporting and 72% when importing in the last month, according to ONS surveys.

“There is a lot more friction on trade, which you would expect to have a more medium-to long-term impact,” said Grant Fitzner, chief economist at the ONS.

Gareth Thomas, the shadow international trade minister, said the government had exaggerated the benefits of trade deals with countries outside the EU that have yet to be negotiated. “Ministers are not doing enough to support our exporters in markets outside Europe, while the deal they negotiated with the EU has led to long lorry queues into Dover, a big increase in red tape and a significant decline in trade,” he said.

A UK government spokesperson said: “UK goods exports to EU nations were 4% higher last year compared with 2020. However, as the ONS itself recognises, the impact of the Covid-19 pandemic, global recession and supply chain disruption, have caused higher levels of volatility in recent statistics. It is therefore still too early to draw any firm conclusions on the long-term impacts of our new trading relationship with the EU.

“We are continuing to ensure that businesses get the support they need to trade effectively with Europe.”

Newsletter

Related Articles

0:00
0:00
Close
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×