Food and drink businesses, one of the hardest hit sectors following the global pandemic and Britain’s withdrawal from the EU, are now seeing a “Brexit dividend.”
Latest figures for May show UK exports of all goods to the EU climbed 8.8% over those from April dispelling the arguments that Brexit would dampen trade. Food and drink sales rose 7%. That means the UK is now trading at the same level with the EU as before the UK left the union, with the figures for May being the best since October 2019. Total exports of UK goods to all countries rose 4.9%.
The rebound in trade between the UK and EU was driven by strong demand from European countries as economies across the bloc reopened.
European firms are likely to have increased spending on UK goods and products after stocks built up in the run up to the end of the post-Brexit transition period were depleted.
Strong export figures also suggest that firms are comfortably getting to grips with the new administrative processes which were put in place at the end of last year.