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According to recent figures from the Food and Drink Federation (FDF), British food and drink exports to the European Union have declined significantly, dropping by over a third since the UK’s departure from the bloc. This decline underscores the impact of new bureaucratic barriers that have altered the dynamics of trade between the UK and its key trading partner.
Although certain products like whisky, chocolate, and cheese continue to enjoy popularity among EU consumers, the aggregate volume of food exports to the EU has decreased to 6.37 billion kg in 2024. This figure marks a 34% drop in comparison to 2019 figures, as reported by the FDF.
While part of the decline can be linked to global circumstances such as the Covid pandemic and the ongoing conflict in Ukraine, the FDF points out that other European nations like the Netherlands, Germany, and Italy have increased their export levels since 2020. The organization attributes the UK’s export slump to the new trading arrangements established post-Brexit.
In a contrasting trend, the UK has seen its food and drink imports reach record highs, highlighting a growing reliance on foreign products. In 2024, the total import value was recorded at £63.1 billion, with a notable 3.3% increase in imports from the EU and a 7.4% rise from non-EU countries.
Notably, the EU continues to be a critical trading partner for the UK food and drink sector, representing nearly two-thirds (61.8%) of exports and 75.6% of imports, valued at close to £45 billion in 2024. Interestingly, this rise in EU imports occurred despite the implementation of new border checks in April 2024 for animal and plant products entering the UK.
The FDF has indicated that while imports from the EU face fewer checks compared to the stringent requirements for UK exporters seeking to sell to the EU, small and medium-sized enterprises within the UK are encountering significant hurdles in meeting these new and complex import regulations.
In light of these challenges, the FDF is advocating for the government to collaborate closely with the food and drink sector to strategically enhance trade relations with the EU and eliminate unnecessary trade barriers.
“These statistics illustrate the difficult reality that UK food and drink businesses are facing as they navigate the complexities and bureaucracy associated with trading in Europe,” stated Balwinder Dhoot, the FDF’s director of industry growth and sustainability. He emphasized the need for government efforts to alleviate these challenges.
In contrast to the UK’s experience, global food export volumes recorded an increase of nearly 6% in 2024 compared to the previous year, partially reflecting the benefits from recent free trade agreements. Notably, since the UK-Australia trade deal took effect, there has been a 9% increase in UK exports to Australia, amounting to £429.5 million in 2024.
While Ireland and France continue to be the top individual export markets for the UK, the United States has ascended to third place, driven by the enduring popularity of classic British products such as tea and biscuits.
The FDF is optimistic about potential benefits from a future UK-US trade agreement, which could shield the food and drink industry from impending tariffs. This optimism comes amidst concerns over threats from former President Donald Trump regarding heavy tariffs on European wines and champagnes, representing another chapter in the ongoing global trade tensions.
Source
www.theguardian.com