British exports to EU recover, but red tape remains a hurdle

British exports to the EU in May 2021 were at their highest level since October 2019. The data reveals that exporters are finally recovering some of the ground lost following the UK’s departure from the EU.

However, while demand for British goods is picking up in EU markets, businesses are still hampered by red tape. The head of trade policy at the British Chambers of Commerce told Reuters that “the overall climate remains fragile”.

UK-EU trade still lags behind

Despite the increase in UK-EU trade, Britain's trade with non-EU partners grew considerably faster. 

The data suggests that Brexit remains a persistent obstacle to trade for many businesses. Effective trade solutions need to adapt to the shifting on-the-ground realities, especially as additional Brexit measures take effect.

In particular, exporters need to plan carefully for any potential disruptions. For instance, the head of Dover port expressed concern that holidaymakers could strain the port’s resources. Traders therefore need to anticipate problems and rapidly adapt.

Boris wants post-Brexit Boost

Of course, the UK economy has been hindered not just by Brexit. The COVID-related downturn has broad negative economic effects.

Prime Minister Boris Johnson  is now calling on institutional investors to pour cash into infrastructure and invest in new firms. 

The UK is also planning to issue ‘green bonds’ to help finance environmentally-friendly projects. 

Flexible export solutions that adapt to the real world

The uptick in exports from Britain to the EU demonstrates that effective trade is still possible in a post-Brexit world. However, exporters need effective strategies to manage ongoing uncertainty and ensure their goods get to market as efficiently as possible. 

re:TRADE, powered by VAT IT, is an integrated service that manages all the border compliance, customs, VAT and logistics for you. We can customise an effective solution for your business that reduces costs, maximises VAT reclaim opportunities and prevents border delays.