The German Chambers of Industry and Commerce (DIHK) stated that Brexit has caused an “economic disaster” for UK-Germany trade.
The DIHK report, released on June 22, 2023, reveals a 40% decrease in German direct investment in the UK since the Brexit referendum in 2016. Additionally, the UK’s portion of German exports has dropped by 10%.
The report found that Brexit increased bureaucracy and costs for UK-Germany trade. It also made collaboration on research and development projects harder for companies.
The DIHK urged the UK government to tackle Brexit’s economic fallout and pursue a closer EU trade partnership. The report’s findings are in line with other studies that have shown that Brexit has had a negative impact on trade between the UK and the EU.
Another study by the University of Warwick revealed that Brexit decreased trade from the UK to the EU by 16%. The study also showed that trade from the EU to the UK declined by 20%.
The negative economic consequences of Brexit may persist. The UK government aims to negotiate a free trade agreement with the EU. However, the timing of this agreement remains uncertain.
In the meantime, businesses trading between the UK and the EU may face more bureaucracy and costs. This could hinder their competitiveness and result in UK job losses.
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