Brexit is beginning to take its toll. Trade with the EU is suffering and foreign investment is heading south. Neither trend is temporary and both harm the government’s stated aim of “levelling up” regions that until now have depended on overseas trade to create well-paid jobs.
Brexiters remain largely convinced that independence from EU courts and control of Britain’s borders is worth whatever short-term damage is caused by vacating our seat in Brussels.
For a while it wasn’t clear how much the pandemic was complicating the picture. Those who campaigned for Britain to quit the single market and customs union were able to hide behind broader figures that showed global trade taking a hit – and, since January, when the transition period came to an end, how the second and third waves of the virus had distorted most exporting countries’ trading patterns.
That isn’t true any more. There are just too many independent reports examining the UK’s trade figures that are reaching the same conclusion: Brexit is bad for exporters. And not just today and tomorrow, but for a very long time.
Businesses in the north-east are already nursing their wounds, as the local chamber of commerce pointed out last week in an open letter to Boris Johnson. A survey in May of its “internationally trading members” found 75% reported their finances being hit by Brexit-related red tape while 37.5% said their UK-EU trade volumes had suffered.
When exports account for 30% of Britain’s GDP and UK-based exporters are struggling to make headway in a world where trade is now booming, it bodes ill for the nation’s economic health over the next year and many more to come.
https://www.theguardian.com/business/20 ... its-brexit