UK on course to drop from Germany’s top 10 trading partners.
Written by crest887fm on September 9, 2021
The UK has been in Germany’s top 10 trading partners since 1950.
But, with Brexit-related hurdles taking a toll, Britain looks set to drop to the 11th spot by the end of this year.
Germans spent £13.8bn, or nearly 11%, less on British goods in the first six months of 2021, according to data from the Federal Statistics Office.
Companies are actively swapping UK suppliers for EU ones, seeing British exports “free-fall” – and this trend is only increasing, an expert said.
Britain left the European Union’s single market at the end of 2020 after four years of wrangling. Since then, customs checks have been implemented which have complicated trade.
“Imports in free-fall”
Two sectors that have been particularly hard hit are agriculture and pharmaceuticals, where imports have dropped by 80% and half respectively.
This has seen Britain fall down the ranks of Germany’s top trading partners: it is likely to hit 11th place this year from ninth last year, and fifth before it voted to leave the EU in 2016.
Despite this, the UK is still buying a lot from Germany, with imports up 2.6% to $32.1bn in the first six months of this year.