English and Welsh manufacturers have experienced a decline in exports going to the EU since leaving the continent’s political group, research from Make UK found.
A report by the leading manufacturing trading body said that Northern Ireland and Scotland both experienced a jump in their share of exports to the EU since Brexit in 2020.
In 2022, the UK’s share of exports to the EU rose from 50% to 52%, largely driven by tariff-free trade in Northern Ireland and an increase in demand for Scottish oil and gas.
“This [jump] was a result of sharp increases in the share of exports to the EU from Northern Ireland and Scotland over the same period, without which the overall UK share of goods exports would also be on a downward trend,” the report said.
Since 2019 the UK’s share of exports to the US, Asia and Oceania has remained at around 16%, Make UK believe this is because manufacturers are targeting newer and less traditional markets.
The north of England was one of the worst affected places by a decrease in EU exports, with the northwest dropping from 52% to 50% and the northeast from 60% to 57%.
In London and the south-east, exactly half of the exports went to the EU, up one percentage point, and in the east of England, the figure rose from 49% to 54%.
Verity Davidge, director of policy at Make UK, said: “Given the EU remains the most important market for manufacturers, efforts still need to be made to improve the existing agreement with the EU to reduce barriers to trade.
“However, UK trade patterns may be undergoing a gradual shift, with many companies continuing to look for opportunities in other markets.