Britain has suffered the worst export record of any G7 member besides Japan over the past decade, according to new analysis that will increase pressure on the government to reconsider its post-Brexit trade deal.
As most of the world’s other seven largest economies have recovered from the pandemic, export growth has remained sluggish in the UK at a time when businesses doing business with the EU have faced extra measures and costs as a result of the country leaving the bloc.
Figures from the United Nations Conference on Trade and Development (UNCTAD) show that UK exports of goods and services reached £813 billion in 2012, rising just 6% to reach £862.6 billion by 2021.
That compares with double-digit increases enjoyed by Canada (10.2%), France (16.1%), Germany (22.7%), Italy (15.9%) and the United States (13.8%). The 27 member states of the European Union as a whole enjoyed a 29.1% increase in the value of their exports in the same period.
The value of UK exports in 2019, before the pandemic, was £881.6bn, about £20bn higher than the figure published in 2021, according to an analysis of UNCTAD figures provided by the House of Commons Library.
Only Japan, which has been particularly exposed to falling demand from China as it becomes increasingly self-sufficient in commodities such as automobiles, auto parts and steel, fares worse than the United Kingdom, with the value of trade rising by only 0.5. % from £912.2 billion in 2012 to £917.5 billion in 2021.
The UK’s trade and cooperation agreement with the EU after years of wrangling is under review in 2024. Labor leader Keir Starmer said the government he leads would seek better trade terms, though he limited the scope of any changes by Excluding a return to the single market or negotiating a new customs union.
There have been repeated complaints from business leaders about a range of post-Brexit obstacles to trade with the EU and the lack of effort by the UK government in seeking to address them.
Recently, three of the world’s biggest automakers, Vauxhall, Jaguar Land Rover and Ford, told the government it needed to renegotiate with the European Union a change to post-Brexit rules set for next year that they say threaten electric car production in Europe. United kingdom.
In its latest forecast, the Office for Budget Responsibility said it expects continued weakness in overall UK trade over the next two years, with export volumes expected to decline by 6.6% in 2023 and by 0.3% in 2024.
Shadow Trade Secretary Gareth Thomas said the disappointing growth in exports over the past decade was a direct result of additional burdens on companies exporting to Europe, which remains the country’s largest market.
He said: “In the past decade the Conservative Party has failed to meet key trade targets, cutting support for companies wanting to win new export contracts and making it more difficult to trade with key allies.
A spokesperson for the Department of Business and Trade did not provide an explanation for the relatively poor performance over the past decade, but did provide a figure from the Office for National Statistics indicating exports were up year-on-year.
The government also indicated healthier export results in services, such as finance, where trade is less dependent on the EU than in goods. About 36% of service exports are exported to the bloc against 47% of goods exports.
A government spokesperson said: “In the 12 months to March 2023, the value of UK exports rose by 24% at current prices, and services exports reached a record £415 billion.
“It is clear that the appetite for world-class British goods and services continues to grow globally, and we will continue to support these fantastic companies on their export journey, helping to create more jobs, pay higher wages and grow the economy.”