Welsh exports have become more dependent on the EU after Brexit, research shows
Welsh exports have become more dependent on the EU after Brexit, new research has shown.
The EU’s share of Wales’ export market has risen from 58% to 60%, despite a reduced dependence on the EU and opening up export markets with the rest of the world being a stated objective of the Brexit project.
Those who commissioned the research said that it showed that the new Prime Minister needed to stop endangering the UK’s trading relationship with the EU as Boris Johnson had done.
The research by Make UK and business advisory firm BDO suggested that the nations and regions which voted for Brexit had increased their dependence on the EU for manufacturing exports, while the European market remained the overwhelming favoured destination for the sector.
Their report found that half of manufacturing exports went to the EU last year, with Brexit-voting regions including Wales, the North East and the East Midlands all seeing their share increased.
Make UK said the EU remains “by some distance” the most important export destination for UK goods, adding that the new Prime Minister should take immediate steps to renew the trading relationship with the bloc.
Verity Davidge, director of policy at Make UK, said: “Despite the talk of ‘Global Britain’, history shows that geography is always the main determinant of trade.
“The EU was always going to remain the main destination for manufacturers who appear to becoming more, not less, dependent on it as a market.
“As a result, it is vital the Government now takes steps to reset the trading relationship with the bloc and, wherever possible, eases and simplifies trading to boost exports for SMEs (small and medium-sized enterprises) in particular.”
Richard Austin of BDO said: “Manufacturing businesses have done a good job in adapting to new post-Brexit rules for trading with the EU, but ongoing Government support may well be required, particularly for firms at the smaller end of the spectrum.
“Clearly, there are difficult ongoing political issues relating to the Northern Ireland Protocol. However, it’s vitally important that good trading relationships with our European neighbours are maintained to ensure that trade remains as frictionless as possible.
“We also hope to see further progress on free trade deals which could offer new and exciting opportunities for the UK’s manufacturing exporters.”
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Good. The key to future success is an ability to supply goods that command a market. Remove the Brexit/Remain boo boy antics and stick to doing good deals with happy customers. Something the lunatics in London would do well to learn.
100% agree with your comment.
Given the amount of traffic between Caergybi and Ireland, a visit from the Irish patrol vessel LE Roisin would be a good thing to emphasise this fact. Perhaps the mayor of Caergybi could offer an official invitation…
Business confidence declined, one of only two areas to do so, and costs have increased as new red tape, supply chain problems and labour shortages took their toll. Funny, they seem to have missed out those items and that’s important because if I export more but my costs increase will I be able to continue when I may now be up against EU competition that doesn’t have those costs? Maybe in the short term I can do OK, as in this snapshot, but what about the long-term? Will I still have enough profit to invest and grow, or will my… Read more »
Let’s hope it’s a continuing trend, once brexit is actually done. The current half arsed situation is no reason to celebrate, more relief. The EU have been much to kind so far, can’t last once they realise the British con job for what it is.
To the Conservatives Wales was the Brexit sacrificial lamb to the slaughter. They knew how important agriculture sector was to our rural economy and they happily threw us under their Brexit battle bus , the very same that promised £350 million per week to the NHS falsehood. Smooth unfettered access to EU markets is vital to the Welsh economy, more so than any Tory fantasy trade deals that they said would miraculously replace a 500 million marketplace with former colonies that will eventually led to the destruction our farming industry when they flood our market with cheaper produce with lesser… Read more »