A new report from Aston Business School highlights the negative impact of the Trade and Cooperation Agreement (TCA) on UK-EU trade relations. The report shows a significant 27% drop in UK exports and a 32% reduction in imports to and from the EU between 2021 and 2023. This decline in trade is attributed to the red tape imposed on British businesses by the TCA, creating non-tariff measures that have stifled the flow of goods.
The report indicates a reduction in the range of goods traded between the UK and EU, with consumer goods exports declining significantly. The UK is also shown to be dropping out of EU value chains, while remaining dependent on the EU for intermediate and capital goods. The negative impacts of the TCA have intensified over time, suggesting deeper structural changes in UK-EU trade relations post-Brexit.
Furthermore, the report points out that the UK’s pharmaceutical industry has suffered from regulatory divergence issues since Brexit, with separate certification requirements for the UK and EU markets leading to increased costs and delays. Agriculture and food products exports have also been particularly impacted, with delays in post-Brexit checks on fruit and vegetables causing concerns about higher prices for shoppers.
In the midst of these challenges, Microsoft has announced a $60bn stock buyback program, while Apple faces worries of weak demand for its new iPhone 16. The contrasting fortunes of these tech giants reflect the complexities and uncertainties facing businesses in the current economic environment.
Source
Photo credit www.theguardian.com