Monday, September 6, 2021
Imports and exports collapse - now Britons feel Brexit like never before
Imports and exports collapse - now Britons feel Brexit like never before
Claudia Wanner 30 min ago.
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There is one piece of good news for British food producers. Exports of Scotch whisky, Welsh lamb and English cheddar to non-EU countries have returned to 2019 levels in the first half of the year at £4.3 billion (€5 billion), before the Covid pandemic disrupted shipments worldwide.
In British supermarkets, many shelves have been quite empty for weeks. Especially, meat, water and dairy products are in short supply. In British supermarkets, many shelves have been pretty empty for weeks now.
This makes the bad news all the more painful: exports to neighboring countries of the European Union, of which the UK has not been a member since the beginning of the year, have slumped by 27 percent in the same period. Spirits, dairy products, meat, snacks worth 6.7 billion pounds had been sent by British manufacturers to the EU from January to the end of June 2019. Two years later, it was only 4.9 billion.
"The recent growth in exports to markets outside the EU is welcome news. But it does not make up for the devastating loss of £2 billion worth of sales to the EU," said Dominic Goudie, international trade officer at the Food & Drink Federation (FDF). The development "highlights the serious difficulties facing manufacturers in our industry and the urgent need for support."
Food retailers particularly affected
Britain's fish, dairy and meat processors, whiskey distilleries and gin distilleries, like their competitors in other countries, are dealing with a variety of problems surrounding the pandemic. Long closed restaurants, changing buying patterns and missing ingredients due to disrupted supply chains are some of them.
Then there are the special factors of Brexit. Traditionally, almost two-thirds of exports went to neighboring markets in the EU. Since the beginning of the year, however, the movement of goods has been hampered by administrative burdens and controls, just like trade with other third countries. Foodstuffs are particularly affected by the additional requirements because of the health checks they have to undergo.
The situation is not easy in the other direction of trade either. Imports from the EU shrank by 15 percent to 13.4 billion compared to 2019. Meat, fruit and vegetables were particularly affected. More than a third fewer goods came from Germany. Trade with non-EU countries, on the other hand, increased by three percent.
The next few months are likely to bring additional difficulties here. "The UK is introducing new checks on food and agricultural products from October 1," Irish Agriculture Minister Martin Heydon reminded businesses in the neighboring country this week.
Products will be sent back
While the EU introduced all new rules and checks at the border right at the start of the year, the British government has opted for a staggered approach. Additional checks on customs and import documentation will apply from October, with more extensive requirements for health checks coming at the turn of the year.
It is critical that all trading partners understand the new requirements, from advance notifications to soon-to-be-required health certificates, Haydon cautioned. But despite the regular reminders, trade experts and supermarkets fear another wave of detained trucks and returned products.
Even without this foreseeable additional burden, another problem is pressing the agriculture industry. "At the same time, we're seeing labor shortages throughout the processing chain, from farms to retailers. That's leading to empty supermarket shelves, delays in deliveries and reduced production," Goudie said.
At McDonald's, milkshakes were temporarily unavailable. A chain of chicken restaurants closed locations because no meat was delivered. Supermarket chains are already warning of looming shortages in the holiday shopping season.
Pubs running out of beer
Even pubs are now reeling from the numerous delivery problems. Pub chain Wetherspoons apologized to patrons last week that a number of beers were currently unavailable. Greene King brewery also reported difficulties in supplying pubs with ordered beer.