Brexit is making itself felt on both sides of the Channel. In January, trade to and from the United Kingdom was severely knocked back. The food industry, in particular, took quite a hit.
Food industry is biggest victim
According to The Guardian, British exports to the EU fell by a massive 40.7 per cent in January. The Office for National Statistics calculated that export fell by 5.6 billion pounds (6.5 billion euros), while imports fell by 28.8 per cent or 6.6 billion pounds (7.6 billion euros). Combined with the new lockdown, Brexit resulted in the biggest monthly drop in UK trade in more than two decades.
Exports of food and live animals to the EU were hit hardest, falling by as much as two-thirds in January. Compared to a year ago, exports of fish and shellfish were down by as much as 83 per cent, which has previously led to intense protests from the fishing industry. However, food products and live animals represent only 7 per cent of total UK exports.
Trade between Belgium and the UK also fell sharply in January, writes Belgian newspaper De Standaard. Figures from the National Bank show that imports of British products and services fell by more than half (-54.4 per cent). In turn, Belgian companies recorded a 35 per cent drop in exports to the UK. However, the National Bank of Belgium points out that, at the end of last year, many companies anticipated possible problems and took precautions by replenishing their inventories.
